1. What type of unemployment is occurring when manufacturers close plants because they cannot compete with labour rates in other countries? Explain what this might do the circular flow of the Canadian economy.

2. What factors of production is Winpak using to be able to compete with developing nations?

3. How have the actions of the Bank of Canada influenced the value of the Canadian dollar compared with the U.S. dollar in the past three years?

4. If wage rates in Canada are increasing more than those in other countries, how should this affect prices and inflation rates? Explain the type of inflation (or deflation) that is occurring.

5. What sort of business arrangement have Winpak and Wipak entered into? If they end up controlling all the patents in the coffee creamer market, what sort of competitive system might be in place?