History of Canadian Trade
Trade with Mexico:
Very recently developed
As a result of NAFTA goods made in Mexico & US can enter Canada duty-free
Mexican goods are bargain to Canadian businesses
Imports from Mexico have greatly increased since NAFTA was signed 1993
Become one of Canada's top 5 trading partners in last 5 years
Our top 5 imports from Mexico: Electrical machinery, Vehicles, Minerals, Fuel, Oil, Furniture/Bedding, Other machinery
Canada's top 5 exports to Mexico: Vehicles, Electrical Machinery, Grain/Seed/Fruit, other Machinery, Iron/Steel

Trade with U.S:
Late 1700's - Declared independence from Britain, revolutionary war - USA becoming self-sufficient (manufactured goods/industrial rev.)
1775 - James Watt invented steam engine - Created cheap power for machines
1794 - Eli Whitney invented Cotton Gin - separated cotton seed from raw cotton - Increased production of clean, raw,cotton - Cotton industry became the profitable backbone
Mid to late 1800's - Huge population growth - Industrial jobs growing - manufactured based, while Canada was resource based (supplying)
2008 - Canada's exports to US: $375B - Canada's imports from US $227B

Trade with Middle East
Centered on oil
Problem - No-arable desert & resulting countries in these locations are not yet industrialized
Due to Anti-American feelings, conservative religious leadership & recent Iraq war M.E seen as politically unstable
Oil Trade - non sustainable which prevents countries in M.E from becoming long-term economic leaders
World i smoking away from oil - result is countries like Saudi Arabia and Iraq will have no other established industries to fall back on
Dubai, Israel, Egypt have gotten away from depending mainly on Oil & established long term trading relationships
Over 1.4 billion Canadian exports reached Dubai in 2008
2008 Financial Crisis burst real-estate bubble & caused Dubai to post-pone their repayment of 26B in foreign debt
Israel & Canada signed over 1.2B worth of medicine, diamonds, engines, shoes & numerous other products to Canada 2008
Dubai, Egypt & Israel established trading relationship with Canada

European Trade
1700s trade grew quickly after settlements were established
Most goods traded were raw materials (i.e. Fur Trade in exchange for finished goods)
Historical connection to Britain = built up during this time
Early settlers settled near water - made sure most major Canadian cities have port access (all goods came by ship)

Trade with Africa
Accounts for 1/2 of 1% of Canadian exports
Accounts for 3% of imports - most African nations have major infrastructure problems
Produces abundance of raw materials
European colonists & other business interests have exploited Africa's raw materials & its people
Individual African nations did not have self-rule
Riches of each country were sent back to its ruling nation

Trade with Asia
Canada frist started to trade with Asia after WW2 in late 1940s specifically Japan
Japans modern factories began producing high-quality electronics like radios, televisions, cameras, computers
By end of 20th century Japan became known for its automobiles & high-tech equipment
One of Canada's top 5 trading partners
Within past 30 years Chinas cheap & abundant labour has encouraged businesses from West to develop partnerships with chances firms
2/3 Chinas exports are from factories that foreign investors own - either outright or in partnerships with Chinese firms
Chinese products = very popular with North American retailers ex. Walmart buys $15 B worth of goods from China
Today - China is one of Canada's top 5 trading partners - over $42B in imports & $10B exports 2008

Trade with India
India = second biggest of population in world
Good at outsourcing services & manufacturing
Labor force of India is young & education is well
Exports of India increases slowly - Imports of India increases sharply
From Canada India gets: diamonds, linen, clothing, rice
India usually sells: vegetables, newsprint, copper
India not good at telecommunication services
Reliable electrical power makes India's business increases slowly
High taxes is one of biggest problems in India

This is my Business Unit 1 Test Notes