Chapter 5 notes taken during the lecture
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Chapter 5 lec notes
Need to Knows:
Intl Business: What It Is & Why We Do It
Int’l Trade: Important to Canada
Exports & Imports
Balance of Trade
Balance of Payments
Intl business: business between two nations
Canada is an open economy: open to trades, and various services across the border,
we are not difficult cuz we dont have beef with any country. We are an open economy
because we believe if we can buy stuff from other people’s cultures we not only raise
living standards but also gives consumers more choice in what they wanna buy
Closed economy: where u don’t trade with anybody else for various reasons: u might
have too much pride in what u produce or u need the stuff u produce for ur own
population more than for intl buyers, hence u wanna keep it within ur borders.
Example india cause india wants their own workers to make indian stuff and they
wanna sell it to Indians only e.g, shalwar kameez
Canada is a major intl trader, worlds 10th largest exporter and 10th largest importer,
30% of our GDP is intl business
Top 3 customers of canadian export: USA, Japan, UK. ¾ of our export goes to
China is the biggest importer for us Canadians.
Canada and NAFTA (NORTH AMERICA FREE TRADE AGREEMENT): treaty
with Canada USA and Mexico says there are no trade barriers or protection, this
promotes the trade amongst these countries. Also we are neighbours, speak the same
language, we get along –ish (shit talking behind their back doesn’t count)
Exports: products or services we make better than others and efficiently example
maple syrup and sell to other countries.
Exporting increases profits and jobs in our country, and it benefits other countries
because they get stuff we make better than them, their living standard goes upp
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