What does Canada export?
Natural resources (oil, gas, timber, minerals), agricultural products (wheat, canola), manufactured goods (vehicles, machinery), and services (finance, tech).Five common primary industries:
Agriculture, forestry, fishing, mining, oil, and gas.Pros and cons of branch plants:
- Pros: Job creation, market access, technology transfer
- Cons: Profits go to the parent company, there is limited local control, less domestic innovation
Examples of tertiary industries:
Retail, healthcare, education, transportation, banking.Absolute vs. comparative advantage:
- Absolute: Producing more efficiently.
- Comparative: Producing at a lower opportunity cost.
Why import apples despite absolute advantage?
A country imports apples if another has a comparative advantage, freeing it to produce other goods more efficiently.