Global Trade

Global Geography 12

Global Connections

Chapter 12

Why Trade?Geography, climate, landforms makes

us unable to be self-sufficient.

Factors Affecting Trade

SpecializationComplementaryPoliticsDistance

Benefit of global trade

EFFICIENCYGood efficiency leads

to competitive prices and makes you a desirable trading partner!

Trade Blocs Countries geographically located together

trade with each other. i.e. European Union

Why? Easier trade, open borders, common

currency

Why Not? “All eggs in one basket”

Costs of Global Trade Soil erosion and dependency on chemical

fertilizers. Industrial accidents including oil spills and

train derailments. Increased CO2 emissions, loss of farmland

and risk of radioactive accidents. Lack of sustainable development. Global warming, ozone depletion and air

pollution.

Canada's Top 10 Export Markets by Country, 2004

Country % Share of Total Exports

United States 84.5

Japan 2.1

United Kingdom 1.9

China 1.6

Mexico 0.7

France 0.6

Germany 0.6

South Korea 0.6

Belgium 0.5

Netherlands 0.5

Total of Top 10 93.6

Canada's Top 10 Import Markets by Country, 2004

Country % Share of Total Imports

United States 58.8

China 6.8

Japan 3.8

Mexico 3.8

United Kingdom 2.7

Germany 2.6

South Korea 1.6

France 1.5

Norway 1.4

Italy 1.3

Total of Top 10 84.3

What are they trading?

Canada’s Trading Partners

North American Free Trade Agreement (Canada, US and Mexico)

TermsQuotasDirect Investment Intellectual PropertyPros and Cons

Globalized TradeWorld Trade Organization

Formerly known as GATTGroup of Eight (G8)

Canada, US, Germany, Japan, Great Britain, France, Italy, Russia (and European Union)

Multinational CorporationsLarge, wealthy companies operating in more than one country

Multinational Corporations

Benefits Direct employment Multiplier effect Increased export

levels

Costs Environmental

pollution Slave Labour Poor working

conditions Majority of profits

leave country.

Ignorance is bliss??

The product search we did in class on day one or two showed how dependent yet unaware we are of global trade. We did not know where the products came from so we were unaware of how it is made and the costs to the workers and environment.

You are now aware. What can you do???