Imports and Exports

Question 1

WHY DOES CANADA TRADE?

Answer 1

1. Company growth
2. Entry into new markets
3. Expanded customer base
4. Increased profits
5. Access to inexpensive supplies
6. Access to financing

Question 2

IMPORT

Answer 2

Goods and services produced in one country and brought in to another country for sale.

Question 3

EXPORT

Answer 3

Goods and services produced in one country and sold to another country.

Question 4

BALANCE OF TRADE

Answer 4

• The relationship between exports and imports.
• A country can have either:
  a trade surplus or
  a trade deficit/shortage

Question 5

TRADE SUPRLUS

Answer 5

• When a country’s exports are greater than their imports.
• You are selling more goods/services internationally.
• More jobs are being provided domestically which can lead to higher employment, income and spending.

Question 6

TRADE DEFICIT/SHORTAGE

Answer 6

• Is when a country’s imports are greater than their exports.
• You are not producing as much within your own country and you need to bring in goods/services from other countries.

Question 7

VALUE ADDED

Answer 7

• Is the amount of worth that is added to a product as it is processed.
• The difference between the cost of the raw materials and the cost of the finished goods.
• Canada’s exports from primary industries lack value added!
  Ex: Potatoes vs french fries (french fries are more valuable)