International Trade of Canada

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International Trade of Canada by Mind Map: International Trade of Canada

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2. Disadvantages

2.1. 1. Support of Non-Democratic systems - Great hardships can be caused when people make poor decisions about land use or surplus production for export and do not take the general populations welfare into consideration.

2.1.1. 2. Cultural identity - Is displays and promotes values and lifestyle worldwide - The "culture consumer" in other countries is sometimes overwhelmed by American ideas - Products also carry cultural ideas and messages

2.1.2. 3. Social welfare issues - Maintaining safety standards, minimum wages, workers compensation and health benefits are all social welfare issues that cost business money -Products that are produced in countries where these issues are not met than the products can be sold for less in Canada - The downside to this is that substandard safety conditions cause death and injury in the workplace

2.1.3. 4.Environmental Issues -In Canada, businesses are urged by the government and environmental groups through laws and regulations to keep our air, land and water clean - This is costly process so businesses decide to move their operations to countries; I.e. Mexico, where it is less regulated

2.1.4. 5.Political Issues - Precious commodities such as gold, diamonds, oil or farmland are so important for countries to have control that wars have been started and as a result people are killed -Trade of these items has caused political alliances that do not help the people in trading nation but only the powers corporations that control the commodity

2.1.5. 6. World Wars - International trade breeds rivalries amongst nations due to competition in the foreign markets. This may eventually lead to wars and disturb world peace.

2.1.6. 7. Hardships in times of Wars - International trade promotes lopsided development of a country as only those goods which have comparative cost advantage are produced in a country. During wars or when good relations do not prevail between nations, many hardships may follow.

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4. Advantages

4.1. 1. Meeting our needs -Trade is always balanced -Canadians cant produce some products so we import others

4.2. 2. Job Creations -When foreign businesses buy Canadian products it creates jobs for Canadians. -Exports are very important to Canadians they create one out of three Canadian jobs -40% of what Canadians produce is exported

4.3. 3. Attracting investment -Many foreign companies will invest in an office, factory, or distribution warehouse to simplify their trade and reduce cost This capital investment also creates more jobs

4.4. 4. New technology and Materials -New technology promotes competitiveness and profitability -The newly developed technology can also be traded to other countries (by selling the rights to the patents)

4.5. 5. Diverse Products and Services -Foreign trade turns the world into a giant market, delivering food, fashion. - Business competition is no longer on a city scale; instead, businesses compete against worldwide business . The result is better quality goods, lower prices, and functional design.

4.6. 6. Optimal use of Natural Resources - International trade helps each country to make optimum use of its natural resources. Each country can concentrate on production of those goods for which its resources are best suited. Wastage of resources is avoided.

4.7. 7. Stability in Prices - International trade irons out wild fluctuations in prices. It equalizes the prices of goods throughout the world (ignoring cost of transportation, etc.)

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