CGC1D ISSUES IN CANADIAN GEOGRAPHY Green, Murray & Shannon

Curriculum Expectations:

C3. Industries and Economic Development: assess the relative importance of different industrial sectors to the Canadian economy and
Canada’s place in the global economy, and analyse factors that influence the location of industries in these sectors

Big Idea: Canada’s economic well-being relies on the development of both natural and human resources

Challenges and Opportunities in Canada’s Trade (textbook reference pages 118-125)

A hundred years ago, it took days to move goods across the country. Now goods are moved around the world in hours. In
this global village, the different sectors of the Canadian economy produce goods to be shipped to Canadians and to
individuals and organizations worldwide. It is important to understand our relationships with other countries to understand
our role in the global economy.

Activity 1
Examine the items in your workspace and the clothes you are wearing. Look to see where it was made. Check the countries
off on this website. When you are done, scroll to the bottom and click on generate map. Right-click on the map and copy
the image (or take a screenshot of it). Paste it below. Let’s see whose workplace is the most globalized...

Map of Globalization

Think about how the map would look if you did this 50 years ago. 100 years ago? 200 years ago? Certainly there would
be many fewer countries listed. The world is interacting at an ever-increasing rate; the world is becoming more globalized.

1. Define globalization -
 CGC1D ISSUES IN CANADIAN GEOGRAPHY Green, Murray & Shannon
The process by which businesses or other organizations develop international influence or start operating on an
international scale.

2. How has globalization allowed Covid-19 to spread so quickly around the world?

People and things travel so much throughout the world to get shipped to North America since wages in Asia are lower. This
allows Covid to travel around as well infecting everyone very fast.

Activity 2
In a globalized world, no country’s economy works alone. Every nation produces exports that it sells to other countries and
buys imports from other countries for its own people and industries. Understanding what and with whom Canada trades
helps us to be aware of how our relationships with other nations can affect us locally and globally. A great site to help you
answer the following questions is: https://tradingeconomics.com/canada/imports-by-country or
http://www.worldstopexports.com/

1. Define exports - Something leaving a place or country

2. Define imports - Something entering a place or country
3. In 2021 (or 2022), what was the value of Canada’s exports? 631b
4. In 2021 (or 2022), what was the value of Canada’s imports? 614b
5. Subtract the value of Canada’s imports from the value of its exports (Exports - Imports) = 17b

If the number is positive, it means Canada has a positive trade balance or a trade surplus. This is overall good for Canada.

6. Define trade balance -The balance of trade is the difference between a country's exports and imports of goods.
7. What are some pros and cons of a trade surplus?A trade surplus can provide jobs and economic growth, and a
country's trade balance can impact the value of its currency in global markets. This economic growth indicator
can be harmful if governments begin interfering with trade through protectionism, an attempt to safeguard
domestic industries

If the number is negative, it means Canada has a negative trade balance or a trade deficit. A country can recover from
small deficits but a long-term negative trade balance can harm its economy for many years.

8. What are the long-term disadvantages of a trade deficit? A higher trade deficit leads to jobs being outsourced to
foreign countries as more imports lead to fewer job opportunities. Demand for imported goods leads to a decline
in demand for locally made goods, which leads to the closing of factories and the associated job losses.

The products that Canada exports and imports the most might surprise you.

9. List the top 10 Canadian imports and the top 10 Canadian exports in 2021 (or 2022). What products surprised
you?

Imports:

Machinery including computers: US$80.2 billion (14.1% of total imports)

Vehicles: $78.8 billion (13.9%)

Electrical machinery, equipment: $53 billion (9.3%)

 CGC1D ISSUES IN CANADIAN GEOGRAPHY Green, Murray & Shannon
Mineral fuels including oil: $44.8 billion (7.9%)

Plastics, plastic articles: $22.5 billion (4%)

Pharmaceuticals: $20 billion (3.5%)

Gems, precious metals: $19 billion (3.3%)

Optical, technical, medical apparatus: $14.5 billion (2.6%)

Articles of iron or steel: $14.1 billion (2.5%)

Iron, steel: $11.1 billion (2%)

Exports:

Mineral fuels including oil: US$180 billion (30.2% of total exports)

Vehicles: $50.3 billion (8.4%)

Machinery including computers: $37.7 billion (6.3%)

Gems, precious metals: $23.9 billion (4%)

Wood: $19.8 billion (3.3%)

Plastics, plastic articles: $17.3 billion (2.9%)

Electrical machinery, equipment: $14.7 billion (2.5%)

Aluminum: $14.2 billion (2.4%)

Fertilizers: $13.7 billion (2.3%)

Ores, slag, ash: $11.5 billion (1.9%)

Nothing surprised me.

Activity 3 Canada’s Top Trading Partners

1. Complete the following chart:

Canada’s Top Export Destinations and Top Import Sources, 2021 (or 2022)

Rank Country Value of Exports Rank Country Value of Imports

(in billions of $) (in billions of $)

1 USA 457B 1 USA 278.51B

2 China 22.02B 2 China 76.58B

3 UK 13.97B 3 Mexico 31.13B

4 Japan 13.80B 4 Germanny 17.23B

5 Mexico 6.93B 5 Japan 13.12B

 CGC1D ISSUES IN CANADIAN GEOGRAPHY Green, Murray & Shannon
6 South Korea 6.64B 6 South Korea 10.15B

7 Germany 5.54B 7 Vietnam 9.87B

8 Netherlands 4.97B 8 Italy 9.30B

9 India 4.1B 9 UK 6.62B

10 Belgium 3.65 10 Brazil 6.53B

2. It is clear that Canada’s most important trading partner is the United States. What are two reasons why this is?

We are right next to them and we have similar interests.

3. What could cause this relationship to change?

War

Many factors influence trade between nations. Canada has an abundance of natural resources that other countries need.
The Canadian Prairies produce tonnes of wheat, and that wheat helps to feed the world. Canadian factories produce
reliable cars, trucks, and aircraft less expensively than many other countries can; those countries tend to purchase these
manufactured goods from us. On the other hand, Canada needs energy to fuel these manufacturing processes, and fossil
fuels, such as oil and gas, are currently being extracted less expensively in other countries. Canada imports some of this
inexpensive oil to fuel its manufacturing plants.

4. From the above table, what are the top 2 countries that Canada has a trade deficit with?

China UK

5. What factors might cause Canada to have large trade deficits with these countries?

We need a lot of stuff from them but they don’t need a lot from us,

Canada trades with many different countries. These trading partners require different goods and services from Canada, just
as Canada has a need for goods and services from other countries. These requirements do not stay the same over time. As
countries develop and grow, their needs may change.

Canada’s Trade Patterns with 5 Key Countries

 CGC1D ISSUES IN CANADIAN GEOGRAPHY Green, Murray & Shannon

6. Why do you think the countries shown in the graphic above are key trading partners with Canada?

We need things from each other.

7. Why do you think that the poorest nations in the world are largely shut out of world trade?

They have nothing to offer.

Activity 4 Changes in Trade Patterns

 CGC1D ISSUES IN CANADIAN GEOGRAPHY Green, Murray & Shannon
With increasing international trade, the manufacturing of many goods has become more complex. Resources are now often
collected in one part of the world, shipped to a different region where they are put together, and then sent to other regions
where the final product is sold (this is referred to as supply chains). This globalization can help countries access resources,
natural and human alike, to produce goods while also opening up global markets where final products can be sold.

Downturns in the global economy and other economic problems may affect how a country trades. Currently, with the
Covid-19 pandemic, trade has greatly slowed.

1. How do you think trade has been affected by the Covid-19 outbreak?

A lot less entry to countries are allowed because borders were shut down so supply was decreased.

2. Think about what you found in Activity 1, what can this outbreak mean in terms of our access to goods like
electronics, clothing, and food, especially in the short term?

It has made gpu prices shoot up and a lot of other things were in high demand but low supply.

Globalization has brought us a variety of cheap products for our consumption. But as we are now finding in this pandemic,
our reliance on goods and inputs from other countries makes us very vulnerable. Covid-19 is now on a global scale, but this
illustrates how connected we are to regions all over the world. If the outbreak had been confined only to China, you can
still see from what we have worked on today what a tremendous impact that would have on Canada. This is why we study
Geography, and why it is important to understand what is happening in other parts of the world, as it has an effect on us.

Recommended video:

The COVID Wake-Up Call | Robert Muggah