Manufacturing and Trade in Canada Flashcards

Flashcards covering key vocabulary terms and concepts related to manufacturing, trade, globalization, and environmental factors in Canada.

Importance of Trade

Countries are closely linked together through trading practices and exchanging resources, mostly ending in good for each economy

Import

A product or service brought in from a foreign nation to another

Export

A product or service that is sent to another foreign country

Trade Deficit

When a country imports more than it exports, they spend more money buying goods into the country than making money by selling

Trade Surplus

When a country exports more than it imports, they spend less money buying goods into the country, instead, they make more money selling and sending goods into foreign countries

Free Trade

A government policy that eliminates tariffs and other practices meant to restrict trade. The basic idea is that enhanced trading amongst nations is good for all

NAFTA

North American Free Trade Association. The move to increase free trade began in 1988, where Canada and the US made a free trade agreement together. In 1994, Mexico joined in and the agreement was expanded. However, recently NAFTA has been experiencing some issues

CETA

Comprehensive Economic and Trade Agreement. CETA is a new free trade agreement between Canada and the European Union. The negotiations were finished in August 2014 and are waiting to be approved by the EU. The approval by all EU states for CETA is also being disputed right now. If approved, then CETA would take action at the earliest around 2016, and about 98 percent of tariffs will be gone between Canada and the EU

Fair Trade

Trade between companies in developed countries and producers in developing countries in which fair prices are paid to the producers

Globalization

It is the trend of achieving greater interconnectedness of the world’s financial, technological, economic, political, cultural, sociological, and more systems

Financial Globalization

Stock trading and financial practices going on in one area can directly or indirectly affect another country

Economic Globalization

Companies move their markets and services wherever they like, in order to increase the company’s potential, growth, and profit

Technological Globalization

With the growth of communication, travel, and mobile technologies, people from all over the world can communicate with minimal difficulty and high efficiency

Political Globalization

As countries become more and more interdependent on each other, they tend to adopt similar political practices and policies

Cultural Globalization

The mixing and harmonization of different cultures and ethnicities in one region

Sociological Globalization

The idea that the world itself is the one and only society that is interconnected, and removing previous independent societies

Ecological Globalization

The idea of treating the planet like one large ecosystem and environment instead of separate ecological areas

Geographical Globalization

The idea that national and region borders don’t exist and they are just made up by humans to diversify our society

Location Factors

Factors manufacturers consider when deciding where to locate a factory or manufacturing plant, crucial to the success of a factory

Access to Customers

Delivery times and shipping costs are cut lower due to easier access to customers

Access to Raw Materials

Proximity to raw resources can decrease shipping costs, as raw materials are often heavy, bulky, and difficult to transport

Access to Freshwater or Power

All factories require a comfortable and reliable source of water and power to effectively operate

Access to Labour Supply

The skill and experience of labourers are more important than the size and population of them, as manufacturing has become more of a knowledge-based industry

Access to Transportation

Manufacturers need to make sure that their goods and products can be sent out with ease, so companies will locate their factories near waterways, highways, trains, and more depending on the necessities of transportation

Political Factors

Governments have an effect on manufacturers; some may offer money for a factory to locate in a particular place, while others may kick them out

Circumstance Factors

A factory is located in a certain place due to the proximity of where the owner lives

Comparative Advantage

A situation in which a country is better off focusing its efforts in fields where it is most competitive

Dutch Disease

A situation in which the value of a country’s currency is driven up by the growth of exports of natural resources such as oil or mining products

Ecological Footprint

The ecological footprint measures the amount of natural resources an individual, community, or country uses compared to what the Earth can regenerate

Global Warming

The long-term rise in Earth’s average temperature caused by increased greenhouse gas emissions

Greenhouse Gases (GHGs)

Atmospheric gases like CO₂, methane, and nitrous oxide that trap heat and cause the greenhouse effect

Renewable Resources

Naturally replenished resources (e.g., solar, wind, hydro)

Non-Renewable Resources

Finite and depletable resources (e.g., oil, coal, natural gas)