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Canada’s Economy

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)

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Canada’s Economy

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  1. Canada’s Economy Unit 5 Notes

  2. 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?…

  3. 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!

  4. 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!

  5. 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

  6. 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

  7. 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

  8. Canada’s Exports • Chief 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 billion • Top exporting partners: US (79.3%), UK (2.8%), China (2.1%)

  9. Canada’s Imports • Chief 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%)

  10. Which country is Canada’s biggest trading partner?

  11. 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

  12. Canada’s Unemployment Rate • What percentage of people do not have jobs? • 6% • What percentage of people live in poverty? • 10.8%

  13. Canada’s GDP • $1.271 trillion (2007) • GDP Per Capita--What is the value of goods and services produced per person? • $38,600 (2007)

  14. 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 factories • Abundant Natural Resources • Entrepreneurship

  15. North American Free Trade Agreement • Signed by the US, Canada, & Mexico in the mid-1990s • Eliminated trade barriers between the 3 countries • Free Trade between the 3 countries • How has it affected Canada’s economy? • It eliminated trade barriers with US & Mexico, and allows them to trade more freely at a better cost

  16. Canada’s Economic Problems • Unemployment & poverty • Over depletion of natural resources • Acid rain from factories near Great Lakes region • Improving public services (which forces the country to raise taxes)

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