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Q1: What is NAFTA?

NAFTA = North American Free Trade Agreement

It sets the trade rules for Canada, USA, and Mexico. It eliminates tariffs and other trade barriers and promotes fair competition among the three countries.

Q2: What are some benefits and disadvantages of NAFTA?

Benefits of NAFTA

· Created higher paying jobs in Canada

· More choices for consumers due to increased market competition

· Better access to raw materials, talent, capital, and technology for businesses

· Trade has tripled between the three countries

· Employment has improved 24%

Disadvantages of NAFTA

· Loss of manufacturing jobs to Mexico because labor is cheaper there

· Harder for Mexican farmers to compete with farmers from USA and Canada

· Increased pollution in Mexico due to a focus on economic growth over environmental protection

· Poor working conditions in factories set up in Mexico by US companies who only care about profit

· Loss of Canadian culture

Q3: What is the EU?

EU = European Union

It is a trade agreement encompassing 27 countries in Europe, with a population of almost 500 million people.

Its purpose is to promote peace, economic growth, cooperation, political integration, and a safe society.

Q4: What are some advantages and disadvantages to having the euro as a common currency in the EU?

Advantages

· Lower risk of exchange-rate fluctuation

· Consumers can easily compare prices from country to country

· No need to pay a currency conversion fee

· Easier for businesses to expand to other markets

· More economic stability

· Easier for employees to go work in other countries in the EU

Disadvantages

· High initial cost to implement a new currency

· Loss of national control over monetary policy

· Loss of culture

Q5: What are some arguments for and against a common currency in North America?

For

· Stability for exporters and importers, tourists, investors, and creditors (they know the value of their money won’t change)

· Eliminates the risk of currency fluctuations

· Eliminates the costs and inconveniences of converting currencies

Against

· Hurts Canada’s exports to US if there’s only 1 currency

· Power over Canada’s monetary policy would go mostly to the US because their economy is much bigger; they would prioritize their economy over Canada’s

Q6: What are trade organizations? Give examples.

Trade organizations are groups established to administer and enforce trade agreements.

Examples:  World Trade Organization, Asia-Pacific Economic Co-operation

Q7: What does the World Trade Organization do?

The WTO promotes trade across the world. It has 153 member countries. It has three purposes:

1. A place for countries to negotiate trade

2. A set of rules for countries to use to promote trade

3. A place for countries to resolve conflicts

Q8: What does the APEC do?

The Asia-Pacific Economic Co-operation (APEC) unites many of the countries surrounding the Pacific Ocean, such as Canada, USA, Mexico, China, Russia, Britain, Australia, and New Zealand.

These nations account for 40.5% of the globe’s population and 43% of international trade.

APEC has increased trade by 400% between the participating countries. They also discuss topics such as climate change, terrorism, global economic success, and emergency preparation.

Q9: What does the United Nations do?

The United Nations is a group of countries that work together and strive for world peace and social advancement. It has 192 countries.

It has four main purposes

1. To keep peace throughout the world

2. To develop friendly relations among nations

3. To work together to help poor people live better lives

4. To be a centre for helping nations achieve the three previous goals

The United Nations is also in charge of the World Health Organization, the World Bank, and UNICEF.

The UN fosters a strong economic climate so that international trade and business can succeed.