canada’s economy. 3 economic questions… what to produce? –businesses decide and government...
TRANSCRIPT
Canada’s Economy
3 Economic Questions…
What to Produce?– Businesses decide and government approves/denies it
How to produce it?– Businesses decide & government regulates
procedures
For whom to produce?– Businesses decide based on supply & demand (price)
Which economic system does Canada have?…
Canada’s Economic System
Canada has a Mixed economic system– It’s actually pretty close to a Market economy;
however, there is some government regulation among industries
– It does have Free Enterprise…
Canada is economically strong!
Canada’s Foreign Exchange Rate
The price of 1 country’s currency compared to another…– 1 US dollar = 1.25 Canadian dollars– 1 US dollar = .77 EU euros– 1 Canadian dollar = .61 EU euros
What does this mean?– The US economy is stronger than Canada’s;
however, the economy of the European Union is stronger than both!
Canada’s Natural Resources
What’s available?– Iron ore, nickel, zinc, copper, gold, lead,
molybdenum, potash, diamonds, silver, fish, timber, wildlife, coal, petroleum, natural gas, hydroelectric power
Canada’s Land Use
What percentage of the land is arable (capable of being farmed)?– 5% (only in Southern Canada; Northern Canada’s
terrain is permafrost!)
What are the major agricultural products?– Wheat, barley, oilseed, tobacco, fruits, vegetables,
dairy products, forest products, fish
Canada’s Industries
What’s being produced in the factories?
– Transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum, natural gas
Canada’s ExportsChief exports:– Motor vehicles & parts, industrial
machinery, aircrafts, telecommunications equipment, chemicals, plastics, fertilizers, wood pulp, timber, crude petroleum, natural gas, electricity, aluminum
Exports total (2007): $431.1 billionTop exporting partners: US (79.3%), UK (2.8%), China (2.1%)
Canada’s ImportsChief imports:– Machinery & equipment, motor vehicles &
parts, crude oil, chemicals, electricity consumer goods
Imports total (2007): $386.4 billion
Top importing partners: US (54.4%), China (9.4%), Mexico (4.2%)
Which country is Canada’s biggest trading partner?
Canada’s Literacy Rate
What percentage of people over the age of 15 can read and write?– 99%
How long are students required to stay in school?– 17 years
Canada’s Unemployment Rate
What percentage of people do not have jobs?– 6%
What percentage of people live in poverty?– 10.8%
Canada’s GDP
$1.271 trillion (2007)
GDP Per Capita--What is the value of goods and services produced per person?– $38,600 (2007)
4 Factors That Effect Canada’s GDP
Human Capital: Canada is investing in education & training (check out literacy rate!)Capital Goods: Canada is investing in new technology & building new factoriesAbundant Natural ResourcesEntrepreneurship
North American Free Trade Agreement
Signed by the US, Canada, & Mexico in the mid-1990sEliminated trade barriers between the 3 countriesFree Trade between the 3 countriesHow has it affected Canada’s economy?– It eliminated trade barriers with US & Mexico, and
allows them to trade more freely at a better cost
Canada’s Economic ProblemsUnemployment & poverty
Over depletion of natural resources
Acid rain from factories near Great Lakes region
Improving public services (which forces the country to raise taxes)