Canadian History, Economy, and International Relations: Key Concepts and Figures

Who was the first European to land in Canada and in what year?

John Cabot landed in Newfoundland in 1497.

What resource did John Cabot initially seek in Canada?

He was looking for spices but found fish instead.

What was the primary fish exported from Canada to Europe during the 1500s and 1600s?

Cod.

What type of fur became a fashion trend in Europe during the fur trade?

Beaver fur.

Who established the first permanent European settlement in Canada and when?

Samuel de Champlain established it in the early 1600s.

What was the purpose of Samuel de Champlain's settlement?

It served as a fur trading center.

What did the Royal Charter granted to the Hudson's Bay Company in 1670 provide?

A monopoly over the fur trade in Rupert's land.

What does the term 'Metis' refer to in the context of Canadian history?

Communities of European-Indigenous ancestry, often describing mixed-descent families.

What is John Ralston Saul's view on Canada's identity?

Canada is a Metis nation shaped by both Indigenous and European traditions.

What defines a Metis nation?

Circular: Non-racial, community based, endless negotiation for inclusion, and always defining the circle

What does JRS believe about the origins of Canada's Metis identity?

It began before European contact, with Indigenous peoples having established trade networks.

How did European trade influence Indigenous societies in Canada?

It led to exploration, settlements, and the devastation of Indigenous societies.

What is the significance of trade in the development of Canada according to the notes?

It was foundational for exploration, settlement, and cultural ties.

What geographical feature defines Canada's relationship with the United States?

The world's longest undefended border.

What is the significance of the FTA, NAFTA, and USMCA for Canada?

They permit the free movement of most goods and services between Canada and the U.S.

What does the phrase 'Mouse and Elephant' refer to in the context of Canada's economy?

It describes how Canada's economy is affected by the U.S. economy.

What is Canada's ranking in education completion among countries?

It ranks high among the top countries.

Why does education attract FDI?

Having a fair and inclusive education environment allows for equal and accessible opportunities that provide a chance to gain more high skills workforce for the future.

What is Canada's political stability ranking among G7 countries?

Canada ranks 2nd in political stability.

Why is political stability important in attracting FDI (in terms of Canada)?

It demonstrates reliability and trust in their institutions. As economic fundamentals strong, their sound fiscal (smart and responsible money management from government) policies follow as they have consistent regulations, creating predictable costs that lower risks for foreign investors.

How does multiculturalism attract FDI?

Diverse workforces provide many skills at your disposal as communication is covered (different languages), global perspectives, and overall helps companies complete nationally. Along with an inclusive society, it creates a welcoming environment that retains and attracts new and top talent.

How does Canada's banking sector contribute to its attractiveness for FDI?

It is stable and sophisticated, reassuring international investors.

What reputation does Canada hold in the 2021 Best Countries report?

Ranked 1st overall out of 78 nations.

What are some key values that shape Canada's international perception?

Human rights, social justice, low corruption, and respect for property rights.

How do immigration policies in Canada attract foreign direct investment (FDI)?

They facilitate quick hiring from easy sponsoring and offer permanent residency to workers.

What is the impact of foreign companies opening branches in Canada?

It brings jobs and investments to the Canadian economy.

What is a branch plant economy?

An economy that is over-reliant on foreign multinationals whose headquarters are in their country of origin.

How does USMCA attract FDI to Canada?

It provides stable, tariff-free access to the entire North American market, strong rules of origin, improved protections for intellectual property, labor, and the environment, and reduced trade barriers.

What role does Canada's public healthcare system play in attracting FDI?

It lowers costs for employers by eliminating the need for expensive private healthcare insurance, ensuring a healthy workforce, and demonstrating stability and quality of life.

Why is the Canadian dollar attractive for foreign investors?

It is stable and trusted, providing confidence for investors, and its lower value compared to the US dollar makes it cheaper for foreign companies to invest in Canada.

What is Canada's ranking in quality of life according to the 2025 Best Countries rankings?

Ranked 1st in quality of life.

How does low corruption benefit Canada's economy?

It creates a predictable and transparent business environment, encourages investment, and ensures efficient resource allocation.

What is the significance of the American Dream moving to Canada?

Canada offers cheaper living, equal opportunities, free healthcare, accessible education, and high social mobility.

What percentage of Canadian businesses are multinationals?

0.8%

What percentage of all Canadian assets are owned by multinational enterprises (MNEs)?

67%

What are the top five recipients of Canadian exports?

United States (74.1%), China, Mexico, the United Kingdom, and Japan.

What is the definition of productivity?

The amount of output with respect to the amount of input (capital, raw materials, labor, and innovation).

What drives labor productivity?

Investment in capital, technological progress, and human capital development.

What is the average investment in science in Canada as a percentage of GDP?

Under 2% GDP, with a goal of 2.6% GDP.

What is the impact of low investment in science in Canada?

It leads to brain drain, weakened research capacity, less innovation, and fewer science jobs.

How does the US compare to Canada in terms of investment in science?

The US invests significantly more, with NIH funding at $39B compared to Canada's CIHR at $1.4B.

What is the branch plant effect?

Foreign companies conduct research in Canada, but profits and patents go abroad, weakening local innovation.

What challenges does Canada face in exporting LNG?

Obstacles include pipeline construction difficulties, environmental and Indigenous opposition, and government conflicts.

What is absolute advantage?

The ability of a country to produce more of a good using the same resources compared to another country.

What is the total percentage of manufactured goods and natural resources in Canadian exports?

Manufactured Goods: 28.9%, Natural Resources: 36%.

What are the implications of Canada relying on foreign suppliers for innovation?

It leads to underinvestment in local research and development, resulting in a weaker innovation ecosystem.

What is the significance of Canada's high global rankings in human and economic freedom?

They indicate a favorable environment for investment and opportunities for success across different backgrounds.

What are the consequences of a branch plant economy?

Focus on benefiting headquarters, job loss, revenue leaving the country, and reduced local innovation.

What is the relationship between corruption and economic growth in Canada?

Low corruption levels correlate with high economic growth, enhancing investor confidence and market stability.

What is the impact of a reliable healthcare system on foreign investment?

It attracts investment by ensuring a healthy workforce and reducing costs for employers.

Who promoted the idea of comparative advantage?

David Ricardo, a British economist.

What is the main goal of mercantilism?

To increase national wealth and power by maximizing exports and minimizing imports.

What is opportunity cost?

The amount of a good or service that is sacrificed to produce another good or service.

What defines a country's comparative advantage?

A country has a comparative advantage in producing a good if it has the lowest opportunity cost for making that good.

How should a country decide what to specialize in?

A country should specialize in the good with the lowest opportunity cost and trade for the others.

What are the benefits of comparative advantage?

Lower prices, greater productivity, higher standard of living, and increased global output.

What factors can create sources of comparative advantage?

Technology differences, climate differences, and factors of production such as land, labor, and capital.

What is a competitive advantage?

An advantage that allows a company or country to produce goods or services better and/or more cheaply than rivals.

What are cost-based advantages?

Advantages gained by producing at a lower cost than competitors through cheaper labor, economies of scale, or efficient supply chain management.

What is product or service differentiation?

Offering something unique or superior, such as better quality, distinct design, or excellent customer service.

What role does human capital play in competitive advantage?

Having highly skilled employees and strong corporate culture can lead to competitive advantage.

What are market and customer advantages?

Building a strong market position through brand loyalty, exclusive contracts, and large distribution networks.

What is the significance of multinational corporations (MNCs)?

MNCs account for over 70% of world trade and operate in multiple countries.

What characterizes a multinational corporation?

A parent company in the home country and subsidiaries or divisions in one or more host countries.

What are some political and institutional advantages for national-level competitive advantage?

Stable government, low corruption, favorable trade policies, and strong intellectual property protection.

What natural and geographic advantages can contribute to competitive advantage?

Abundant natural resources, fertile land, strategic location for trade routes, and tourism appeal.

What is the role of innovation and technology in gaining competitive advantage?

Standing out through new ideas, first-mover advantage, and strong research and development.

How do economies of scale contribute to competitive advantage?

Producing on a large scale reduces the cost per unit, leading to a competitive edge.

What is the impact of favorable location on competitive advantage?

A favorable location can lower shipping or logistics costs, enhancing competitiveness.

What is the importance of strong customer data and insights in competitive advantage?

It helps build a strong position in the marketplace and understand customer needs better.

How does a strong corporate culture contribute to competitive advantage?

It fosters collaboration, creativity, and effective management, leading to better performance.

What is the relationship between comparative advantage and trade?

Countries should produce what they are best at making and trade for the rest, leading to mutual benefits.

What is the effect of specialization based on comparative advantage?

It allows countries to produce goods more efficiently and trade for others, enhancing overall prosperity.

What is the Eurocentric approach in MNC management?

Home-country employees manage headquarters and foreign subsidiaries, with control staying with home-country managers.

What defines the Polycentric approach in MNCs?

Home-country managers run HQ while host-country natives manage local branches, allowing local managers to understand local markets.

Describe the Regiocentric approach in multinational corporations.

Headquarters are managed by home-country natives, while regional managers oversee operations in their area, focusing on regional coordination.

What is the Geocentric approach in MNCs?

The best people worldwide are chosen for positions, regardless of nationality, promoting a true global mindset and talent-based hiring.

List one pro of multinational corporations.

MNCs meet consumer needs worldwide.

What is a con of multinational corporations?

MNCs can support non-democratic regimes for profit.

What is one benefit of the Ethnocentric approach?

Communication is streamlined as language barriers are removed.

What is a drawback of the Polycentric approach?

Communication may not be effective between the host country and the home country.

What advantage does the Regiocentric approach provide?

Regional managers can better coordinate and share strategies, understanding local customers and culture.

What is a disadvantage of the Geocentric approach?

It incurs high relocation and training costs.

Define rationalization in a business context.

Rationalization occurs when a company changes its structure, products, or production process to become more efficient, productive, and competitive.

What is one reason for rationalization?

Changes in consumer demand due to new lifestyles or trends.

How does rationalization affect production costs?

Streamlining operations reduces waste and expenses, leading to lower production costs.

What is a potential effect of rationalization on profits?

Lower costs combined with higher productivity lead to increased profits.

What is one advantage of rationalization for a nation?

Increased national income through higher production and productivity.

How does rationalization impact competition?

It can lead to the removal of competition as some competitors cannot keep up with lower prices or efficiency.