Minds On

Trade and economic relationships

Consider the following questions:

  • What is trade?
  • What is an economic relationship?
  • Why do countries trade with one another?

Record your ideas using a method of your choice.

Think about why Canada has developed close trade relationships with specific regions/countries. Select all the reasons why Canada may develop close trade relationships with specific countries or regions. Consider if there might be any other reasons.

An image showing different modes of transportation for trade- importing and exporting goods.

Press ‘Different Modes of Transportation’ to access how they help in importing and exporting goods.

There are various modes of transportation, including an airplane, a transport truck, and a large ocean liner. A crane is above the ocean liner taking off large crates. The different modes of transportation can be used to carry products or goods to different locations.

Action

Ways of trading

Press each term to understand the difference between economic relationships and trade.

Producing and distributing goods and services to another region, globally or internationally.

Trade is the exchange of goods or services between countries for money or for other goods or services.

Trade can be equally beneficial to both nations involved, and many countries, like Canada, depend on international trade.

By trading with other nations, countries are able to acquire goods or services that might not have been available without trade. This might be due to differences in climate, growing conditions, or an increased need for a product that exceeds a country's capacity to produce it.

Trade occurs in two ways.

Press each term to distinguish between them.

Imports are products or services that are purchased from another country and brought into a country. These are items that are brought into a country to be sold. For example, Canada imports machinery, including computers.

Exports are products or services that are produced or manufactured in one country and sold in another. For example, Canada exports vehicles and wood, among other products.

Explore the following definitions and fill in the blank with the most appropriate term.

You can also record your ideas using another method of your choice.

For each sentence, select the missing term/s.


Canada not only imports products from other countries, but we also export products as well.

Explore the following description about Canada’s largest trading partners. They were considered to be Canada’s largest trading partners in 2019 because of the amount of product traded through imports and exports.

An image showing an infographic titled Canada’s Largest Trading Partners

This image shows an infographic titled Canada’s Largest Trading Partners.

Seven countries are represented by their flags and are positioned along the top and bottom of the infographic. The Canadian flag is displayed in the middle. The five countries that export the most products to Canada (Canada imports their products) are indicated on the top with arrows pointing to the Canadian flag in the middle. These countries include: The United States, China, Mexico, Germany, and Japan. The five countries that Canada exports the most products to are indicated on the bottom with arrows pointing to the country flags Canada exports to. These countries include: The United States, China, United Kingdom, Japan, and Mexico.

Respond to the following true or false questions. If the question is false, think about how you can make it true.

Select the correct answer.

Press the multiple choice question number to know why it is a false statement.

This statement, “Canada only imports items from the United States,” is false.

Canada imports items from the United States and exports items to the United States.

The statement, “The United States, China, United Kingdom, Japan, and Mexico are the only countries Canada exports products to,” is false.

The United States, China, United Kingdom, Japan, and Mexico are just some of the countries Canada exports products to. They are Canada’s largest trading partners.

Manufacturing around the world

In the Minds On section of this lesson, you explored why countries trade with one another. This could include geographical proximity, products needed, markets for goods and services, regulations, etc.

Trade is important because many items that might be purchased come from other parts of the world as imported products.

Many of the items are produced in other countries for several reasons.

Press each of the following tabs to understand more about the different reasons that lead to the production of different items in different countries.

Some products or resources are only available in certain parts of the world. For example, special wool from New Zealand makes a sweater waterproof.

The United States has agreed to not charge tariffs on soft lumber produced in Canada.

Some countries have specific industries designed to produce specific goods.

The cost of producing a product varies among countries.

Consider the ways in which trading with other countries affects Canada’s economy. How is trading beneficial to Canada? What might be some economic effects on Canada based on the interactions with other regions in the world?

Record your ideas using a method of your choice.

Press ‘Hint’ to access ideas that can inform your responses.

Consider the reasons for trading, how/why items are produced, the markets for Canadian goods, and how that could help jobs grow.

Consolidation

Economic trading with other countries

Canada has been successfully trading goods and services with other countries for many years. As part of this trading process, Canada creates trade agreements which establish the rules for trade.

There are many things that need to be considered when establishing trade agreements.

Consider what some of those items might include. What factors need to be considered when establishing trade relationships with other countries/regions?

Canada trades a lot of goods with close international neighbours, such as the United States and Mexico. Agreements have been created to make trading easier.

There are three flags. The first one is the flag of the USA, the second is of Canada, and the third is of Mexico.

In 2018, the United States, Canada, and Mexico came to a new agreement regarding trade in North America. It was originally created in 1994 and was called the North America Free Trade Agreement (NAFTA). The new agreement or United States-Mexico-Canada Agreement (USMCA) or Canada-United States-Mexico Agreement (CUSMA) is one of the largest free trade zones. It promotes strong economic growth for Canada, Mexico, and the United States.

The agreement focuses on eliminating all taxes between Canada, the United States, and Mexico. The agreement also focuses on agriculture, automotive industries, respecting national security, promoting labour standards, promoting and upholding environmental protection, preserving a sense of national identity and belonging, promoting the rights of Indigenous peoples, and supporting gender equality during employment.

Using the information above, as well as other resources, respond to the following questions about the CUSMA:

  • What are the countries involved in this economic relationship?
  • What are some of the reasons for these relationships?
  • What are some of the components of the agreement?
  • In what ways does this trade agreement affect Canada?

Record your ideas by completing the Canada-United States-Mexico Agreement (CUSMA) in your notebook or using the following fillable activity document.

Press the Activity button to access the Canada-United States-Mexico Agreement (CUSMA).

Activity(Opens in a new tab)

How can you communicate this information with others?

Choose a format of your choice such as an audio recording, a visual presentation, a poster, or a digital format to share this information. Be sure to include all of the information that you have recorded!

Think about what you have learned

Respond to the following questions and record your thoughts using a method of your choice.

  • How is Canada connected to the rest of the world through their economy?
  • Why have these trade/economic relationships been developed?

Reflection

As you read through these descriptions, which sentence best describes how you are feeling about your understanding of this learning activity? Press the button that is beside this sentence.

I feel...

Now, record your ideas using a voice recorder, speech-to-text, or writing tool.

Press ‘Discover More’ to extend your skills.

Explore another significant economic relationship that Canada has with another country/region.

What trade agreements do they have? Why have they developed a trade relationship? Identify some of the reasons for this trade relationship.

Record your findings using a method of your choice.