Transcript Canada`s Economy - mrsswansonsclass

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 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%)
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%)
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 factories
Abundant Natural Resources
Entrepreneurship
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
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)