What is the basic type of economic
system found in Canada?
How do most countries strike a
balance between having a pure market
and pure command economy?
• Most countries in the world have elements of
pure command and pure market economies.
• Because they are a mixture of both, we say
that most country’s economies are mixed.
How does specialization enhance
Canada’s ability to trade with other
– No country does all things well. So each
country uses the industry that it does do
well to trade to other countries(export).
Then they receive the things they don’t do
well from other countries(import).
– For example: Canadians love oranges but
can’t grow them because of the climate.
They do produce grains so they trade the
grains(export) and receive the citrus
fruit(import) from other countries.
How does NAFTA impact Canada’s
economy and trade?
• NAFTA is a free trade agreement that removes
trade barriers (tariffs, quotas, and
• NAFTA has allowed Canada to trade with the
United States and Mexico without penalty and
has improved the economy of Canada.
How do trade barriers (tariffs, quotas,
and embargoes) hinder voluntary
trade from occurring between
• Tariff- tax on imported goods.
• Quota- limit on imported goods.
• Embargo- restriction or total ban on trade.
Examples: Tariffs drive the price up on imported goods so
the consumer is less likely to buy the imported
product. Quotas limit the amount a country can
import. If they have a great crop, they may not have a
market because of quotas. Embargoes will not allow
trade at all in some cases.
How do the factors of location,
climate, access to water, and natural
resources affect where Canadians live
• People live and work where resources are
located, climate is moderate, and especially
where there is access to water so they can