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In this chapter, you will: Learn about Canada’s foreign trade, trade relationships, and trading patterns; analyze the case for trade, based on absolute and comparative advantage; examine the impact of trade protection and the arguments for and against it; Learn about Canada’s trade policies from its beginnings as a country of recent international trade arrangements. | Understanding Economics Chapter 16 Foreign Trade Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. 2nd edition by Mark Lovewell and Khoa Nguyen Chapter Objectives In this chapter, you will: learn about Canada’s foreign trade, trade relationships, and trading patterns analyze the case for trade, based on absolute and comparative advantage examine the impact of trade protection and the arguments for and against it Learn about Canada’s trade policies from its beginnings as a country of recent international trade arrangements Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * The Importance of Trade (a) Canada has shown a heavy reliance on trade, with exports representing 41% of its GDP. When compared with other countries, Canada’s exports are a higher proportion of GDP than is average for the world’s countries, including Japan and the US. Some small industrialized countries, such as Belgium, have a higher reliance on foreign trade than does . | Understanding Economics Chapter 16 Foreign Trade Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. 2nd edition by Mark Lovewell and Khoa Nguyen Chapter Objectives In this chapter, you will: learn about Canada’s foreign trade, trade relationships, and trading patterns analyze the case for trade, based on absolute and comparative advantage examine the impact of trade protection and the arguments for and against it Learn about Canada’s trade policies from its beginnings as a country of recent international trade arrangements Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * The Importance of Trade (a) Canada has shown a heavy reliance on trade, with exports representing 41% of its GDP. When compared with other countries, Canada’s exports are a higher proportion of GDP than is average for the world’s countries, including Japan and the US. Some small industrialized countries, such as Belgium, have a higher reliance on foreign trade than does Canada. Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * The Importance of Trade (b) Figure 16.1, Page 402 Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. Belgium 73 Canada 41 Switzerland 40 United Kingdom 29 Germany 27 France 27 China 22 United States 12 Japan 11 World average 22 (exports as a percentage of GDP, 1999) Percent * Canada’s Trade Patterns (a) Canada’s primary trading partner is the US which buys over four-fifths of Canadian merchandise exports and provides about three-quarters of Canadian merchandise imports Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * Canada’s Merchandise Trade by Region (2000) Figure 16.2, Page 402 Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. United States 359 630 (86%) 267 578 (74%) European Union (E) 21 007 (5%) 33 572 (9%) Japan 9 920 (2%) 11 718 (3%) Other OECD countries 8 159 (2%) 18 925 (5%) All others 18 941 (5%) 31 371 (9%) Total 417 657 (100%) 363 164 .
