MGTA01H3 Lecture Notes - Canadian Dollar, International Trade, Canadian Business
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MGTA01H3 Full Course Notes
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Document Summary
30% of canada"s gdp is based on international trade: balance of trade, balance of payments, exchange rates, barriers to trade, tarriffs, quotas, subsidies, embargoes. Ppl came to canada to get stuff that they couldn"t get in there country but could in canada. Sell billion worth of exports in a year compare that to the trillion. Gdp, this is why we care about international trade. We are an open economy: means that we love to trade with ppl coz we want the best stuff from all around the world. The problem with importing is that money leaves the country so we should have more exports. We sell a lot of cars and car parts, due the excess amount of factors of production. We want everyone to buy our stuff ie. more exports. Ppl wont buy from us if we don"t buy from them therefore we have imports. Balance of trade = exports imports.
