ECON 1102 Chapter Notes - Chapter 17: Price Discrimination, General Agreement On Tariffs And Trade, Infant Industry Argument
4 Apr 2016
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Document Summary
Exports are about 28% of canada gdp. Imports are about 29% of canada gdp. Canada is almost entirely dependent on other countries for bananas, cocoa, coffee, spices, tea, raw silk, tin, and natural rubber. Many canadian industries rely on sales abroad: agriculture, computers, chemicals, aircraft, automobiles, etc . A trade surplus occurs when exports exceed imports. Canada had a trade surplus in goods in 2014. A trade de cit occurs when imports exceed exports. Canada had a trade de cit in services in 2014. Canada imports some of the same categories it exports, called intra industry trade. Canada"s export and import trade is mainly with other industrially advanced nations. Ef cient production requires different technology or resource combinations. Products are differentiated as to quality and other non price attributes. Absolute advantage: if a country is the most ef cient producer of that product. Comparative advantage: if a country can produce the product at a lower opportunity cost.
