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Q1: Explain four ways in which international trade helps Canada. Give an example for each

1.      Increased variety of products

·        Example: Running shoes are all foreign brands

2.      More jobs

·        Example: Lululemon got popular overseas, which creates more jobs in Canada at Lululemon and their suppliers

3.      Foreign investment

·        Example: A foreign company invested in Canada’s Hudson Bay Company and saved the company and thousands of workers.

4.      New technologies and processes (ways of doing things)

·        Example: using factories in other countries to manufacture a product to sell in Canada

 

Q2: Explain two ways in which international trade hurts Canada. Give an example for each.

1.      Loss of culture/identity

·        Example: Most movies shown in Canadian theatres are American movies rather than Canadian movies. As a result, most people learn more about American culture rather than Canadian culture through movies.

2.      Increased foreign ownership of companies in Canada

·        Foreign companies are loyal to their home country

·        Foreign companies do R&D in their home country

·        Reduced exports

·        Reliance on foreign countries, especially the US

 

Q3: Name three Canadian companies that are internationally successful. Why do you think they are successful?

Cirque du Soleil (p. 255)

·        It is successful because it is extremely different and innovative from other circuses.

·        It has permanent venues rather than moving around like a traditional circus.

·        It appeals to higher-income people who want a professional, classy show.

·        It is extremely artistic, which is very different from a normal circus.

 

Canadian banks such as RBC and Scotiabank

·        They are very conservative, so they lost less money during the 2008 financial crisis and earned a good reputation internationally

 

Lululemon

·        Great product; extremely comfortable and sporty

·        Great culture – sells not just a product but a lifestyle. They really promote their company values, which can be seen on their bags.

 

 

Q4: What are some cultural industries in which Canada is successful internationally? Give an example for each.

Books. Famous Canadian authors include

·        Margaret Atwood

·        Malcom Gladwell

·        Alice Munro

 

Films. Famous Canadian films include

·        Bon Cop, Bad Cop

·        One Week

·        My Big Fat Greek Wedding

Also, Vancouver is home to 60% of all foreign-location movies and shows produced in Canada.

 

Music. Famous Canadian artists include

·        Drake

·        Michael Buble

·        Nickelback

 

Live theatre

·        Stratford Shakespeare Festival

·        Cirque du Soleil

 

 

 

 

 

Q5: What are five ways for Canada to attract foreign investment?

1: A supportive business environment

·        It’s easy to set up a business in Canada

·        Strong, stable economy

·        Tax advantages for businesses

 

2: Canada serves as a gateway to do business with the rest of the world

·        Strong relationship with the US; located right beside the US

·        Strong connection to Asia because of high immigrant population and membership in APEC

 

3: Infrastructure advantage

·        Good airport in Toronto

·        Many shipping ports

·        Well-developed rail system

 

4: Outstanding employees

·        Canada’s spending on education as a % of GDP is higher than other countries, resulting in a highly educated workforce

·        Many highly educated immigrants, bringing diversity to the workplace

 

5: A great place to live

·        Consistently ranks in the top 10 greatest places to live according to the Human Development Index

 

Q6: What kind of economic environment attracts foreign investment? Give examples of metrics that foreign companies might look at.

Foreign companies want a strong, stable economy. They might look at metrics such as low interest rates, stable inflation, and low unemployment rates.

 

Q7: Why do countries want to increase GDP per capita?

GDP per capita measures productivity, and countries want higher productivity. That will lead to an improved standard of living and quality of life because it results in more tax revenue for the government, who then uses it to improve the lives of citizens.

 

Q8: How can countries improve productivity?

1.      Increase investment in machinery and equipment

2.      Spending more on innovation, science, and technology

3.      Outsource production of simple things to lower-cost countries