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Canadian Economy

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					Canadian Economy
What is the basic type of economic
   system found in Canada?



         MARKET
    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
            countries?
– 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
  embargoes).
• 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
              countries?
• 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
              and work?
• People live and work where resources are
  located, climate is moderate, and especially
  where there is access to water so they can
  trade.

				
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