1. The United States is Canada's largest trading partner. However, China has also emerged as an

important trading partner for Canada, and although we do not trade with them nearly as much as we

do with the US, the percentage of our total trade with the US has declined while the percentage with

China has increased.

a. (4) Using the Heckscher-Ohlin (H-O) theory, identify one product you would predict Canada

would export to China and one product we would import from China. Be sure to explain why

Canada would import and export each of these products.

b. (6) As China's economy continues to grow, would we expect to see the trade patterns H-O

predicts between China and Canada continue or change? Why?