Canadian structure and international trade.

2. Quebec
Ontario
Saskatchewan
British Columbia
Nova Scotia
Alberta
Manitoba
Prince Edward Island
New Brunswick
Newfoundland
Canada is divided into 10
provinces.

3. A province is a political boundary that divides Canada into
different regions. Provinces are equivalent to our states.

4. Canada is a parliamentary democracy and a constitutional
monarchy. This means Canadians recognize The Queen as their
Head of State. The Governor General, Adrienne Clarkson, carries
out Her Majesty’s duties in Canada. The Prime Minister is the Head
of Government. Together, they make up the Executive Branch of
the Government.
Queen Elizabeth II Adrienne Clarkson Jean Chetien

5. LEGAL SYSTEM
LAW-MAKING JURISDICTION
Provincial Government
Legislature
*law-making jurisdiction by
s. 92 Constitution Act 1867
Federal Government
Parliament
Senate
*law-making jurisdiction
By s. 91 Constitution Act 1867
Municipal Governments
*law-making jurisdiction by
The Provincial Legislature
Territorial Governments
*limited self government
*subject to federal control

6. Monetary Policy Actions of the
Bank of Canada
Expansionary Policy Restrictive Policy
Tools (stimulate business (slow down business activity
activity and increase the and decrease the money
money supply) supply)
Open Buy government securities: Sell government securities:
Market (increases bank reserves (decreases bank reserves
Operations enabling banks to make loans limiting the banks' abilities
to businesses and to make loans to businesses
consumers) and consumers)
Lower the bank rate: Raise the bank rate:
(increase the willingness of (decrease the willingness of
Bank Rate banks to borrow, more loans can banks to borrow, fewer loans can
be made to businesses and be made to businesses and
consumers) consumers)

7. With its great natural resources, skilled
labor force, and modern capital plant
Canada enjoys solid economic prospects.
Canada has changed from being a rural,
agricultural society to being primarily
industrial and urban.

8. The Bank of Canada
• The central bank of Canada
• Managed by a Board of Governors
• Regulates operations of the chartered banks
• Manages the economy by manipulating the
money supply to expand or restrict the
economy

9. So what, then, is money?
1. Money is a medium of exchange
- that is, it works as a vehicle for the exchange of goods and services.
- this eliminates the need for a “ double coincidence of wants.”
vs.

10. What is the difference between money and
currency?
Money is the product of markets
It is defined by the function it performs (which we
will see shortly)
“Money is a mental tool used for economic calculation
that ingeniously enables each of us to communicate
what we value in an exchange.”

11. The Bank of Canada is responsible for the
design and distribution of Canadian bank
notes.
Canadian bills are called “notes.”
The Bank of Canada must be prepared to supply
financial institutions with enough bank notes to
satisfy public demand.

12. • The Canadian dollar (C$) is a
paper currency of 100 cents.
There are coins of 1,5,10 25,
and 50 cents,1 dollar and 2
dollars, and notes of 2,5,10,20,50,
100,and 1,000 Canadian dollars.
• US currency is usually
accepted ,especially in major cities
and along the border.

14. Canadian currencyCanadian currency

15. Instead of using notes to represent One and Two Dollars,
coins are used instead. They are referred to as a “Loonie” for
one dollar, and a “Twoonie” for two dollars.
Loonie
Twoonie
The Loonie was designed to
replace the country's supply
of one-dollar bills, which was
costing the Government of
Canada over $16.6 million to
replace each year. The thin
paper dollars had only a one-
year life span, while the coins
were each expected to last
as long as twenty years.

16. Exchange Rates and Trade
• Exchange rates influence the willingness of Canadians
to invest abroad and buy imported items (or vice versa)
• A trade surplus occurs when Canada is exporting more
products than it is importing (likely to occur when the
dollar is undervalued)
• A trade deficit occurs when Canada is importing more
products than it is exporting (likely to occur when the
dollar is overvalued)

17. Exchange Rate Over Time

18. Composition of Revenues for
2013–14

19. Composition of Expenses for
2013–14

20. Canada’s economy is related to producing goods and
services. This is done through importing and
exporting goods. Importing goods is when Canada
buys, then sells goods that are developed in other
countries, such as the United States. Exporting
goods, is when Canada ships their goods to other
countries to be sold.

25. automobile
industry
aircraft
industry

26. With a long coastal line, Canada has the
8th largest commercial fishing and
seafood industry in the world.

28. 78% of
GDP

29. 12% of12% of
CanadiansCanadians
12% of12% of
CanadiansCanadians

32. EXPORT AND IMPORT
• Canada is the 10th
largest exporter and 12th
largest importer in the world.
• Agricultural products, crude oil, chemicals, electricity,
durable consumer goods, machineries.
• Total value of exports(2014): $528 billion
• Primary exports partners: US ($396 billion), UK ($63 billion), China
($42.3 billion)
• Total value of import(2014): $523 billion
• Primary imports partners(2014): US ($349 billion), European Union
($49 billion), China ($35 billion).

33. Which country does Canada import most
of its goods from?

34. Fruits and Vegetables Plastics
Motor Vehicles
Office Machinery
Aircraft

35. Where does Canada export most of its goods to?

36. Wheat
Lumber
Metals
Corn
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