Canada’s Economy

Unit 5 Notes

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

Canada is economically strong

Canada’s Physical Trade Barriers

• Northern Canada: glaciers & ice block trade by land and water.

• Western Canada: Rocky Mountains also block trade & travel.

North American Free Trade Agreement (NAFTA)

1993—Canada, USA, & Mexico signed a treaty to eliminate trade barriers between the countries– They now have free trade, which allows goods to

flow freely among the countries

Some Canadians don’t agree with NAFTA:– Fear that their economy is too dependent on the US

– Worry that American economy will dominate the partnership

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%)

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)

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)