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Why Trade?
Climate and land changes affect the distribution of products around the world, but there are some things countries would like
to have from other countries, and vice versa. Some countries lack in certain areas, and this is why they trade, but they only
trade what they have excess of.
Factors Affecting Trade
Specialization - when someone specializes in something, for example Canada specializes in fish and trees.
Complementary - When you can match with another country
Politics - They become prefered trading partners
Distance - Partners beome the closest ones around you
Benefit of Global Trade
-Efficiency
Good efficiency leads to competitive prices and makes you a desirable trading partner.
-Trade Blocs
Countries geographically located together trade with eachother, I.e: European Union.
-Why?
Easier trade, open borders, and common currency.
-Why Not?
"All of your eggs in one basket". If you use up all of your money on one specific thing, then there's no money or time left
over to look further.
Costs of Global Trade
Soil erosion and dependancy on chemical fertilizers. Industrial accidents including oil spills and train derailments. Increased
CO2 emissions, loss of farmland and risk of radio active accidents. Lack of sustainable development. Global warming, ozone
depletion and air pollution.
Canadas Trading Partners
US - 84.5%
Japan - 2.1%
United Kingdom - 1.9%
China - 1.6%
Mexico, France, Germany, South Korea, Belgium and the Netherlands are less than 1%
All of these countries export cars, automobile parts, lumber and forest products to Canada, and they import fruits, vegatables,
and machinery. Their methods of transporting these goods are trucks, airplanes, ships and trains.
The World Trade Organization
In the 1930s tade between nations drastically changed., factories closed, and unemployment rates jumped up. The United Nations
established the "General Agreement on Tariffs and Trade (GATT). GATT began in 1946 with memberships from 23 countries. The
goals were as follows:
"To set up regulations that would govern trade between nations"
"To provide a forum in which countries mutually favourable agreements. Most of these agreements focused on reducing tariffs."
"Tp serve as a court where member nations could settle their trade disputes."
On January 1, 1995. GATT legally changed their name to the World Trade Organization.
The Group Eight
Also known as G8, it involves eight of the most reasonably sophisticated countries in the world. Formerly known as G7 which
consisted of the United States, Germany, Japan, Great Britain, France, Italy, and Canada, and in 1997 Russia was asked to
join, which then they called G8 in 1998.
Multinational Organizations
These are large and highly wealthy companies that operate in more than one country. The largest multinational corporation
is General Motors of Detroit, which is in Michigan. There are branches with more than 190 countries., and more than 166 billion
in yearly revenues. Added up, this accounts for more than 15 countries Gross National Products (GNP).
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