Based on the activity fromthe attached page 57 please describe Canada's trading relationship with each of the following countries, for the period2001-2006. Use the words trade deficit or trade surplus in the answers. a) United States: b) Japan: c) United Kingdom: d) European Union:

Side Note:

Trade deficit If the country pays more for imports than it earns from exports, there is a trade deficit.

Trade surplus If the country earns more from exports than it pays for imports, there is a trade surplus.

3. Canada's largest trading partner is the United States. Explain how this relationship influences the balance of trade in Canada.

F. Activity: Imports and Exports 1. The table below summarizes Canada's imports and exports for the period from 2001 to 2006. Complete the table by determining whether Canada has a trade surplus or a trade deficit in each year. Note that figures in the table are expressed in millions of dollars. For example, the total imports for 2006 were $404 535.0 million, or $404 535 000 000 (just over $400 billion). Canada's Imports and Exports of Goods in millions of dollars) 2001 2002 2003 2004 2005 2006 Exports 420 730.4 414 038.5 398 953.8 429 120.9 453 060.1 458 166.9 United States 352 165.0 347 051.8 329 000.3 350 751.0 368 577.3 361 308.7 Japan 10 120.8 10 115.0 9 800.7 9 950.6 10 470.5 10 760.8 United Kingdom 6 910.3 6 161.5 7 695.8 9 425.8 9 683.2 11 838.5 European Union 16 688.9 16 294.3 16 414.5 17 351.9 19 206.8 21 719.0 Other OECD 12 172.5 2 670.7 12 751.1 14 399.1 15 245.5 18 379.2 Other Countries3 22 672.9 21 745.2 23 291.5 27 243.1 29 876.9 34 160.6 Imports 350 071.2 356 727.1 342 691.9 363 638.5 388 210.3 404 535.0 United States 254 330.7 255 232.5 240 340.4 250 515.6 259 783.9 264 777.6 Japan 10 571.9 11 732.6 10 645.1 10 096.9 11 214.3 11 877.1 United Kingdom 11 954.1 10 181.3 9 180.9 9 466.3 9 061.6 9 685.1 European Union 23 197.1 25 867.0 25 999.6 27 012.3 29 285.6 32 489.4 Other OECD 18 649.8 19 686.6 19 695.3 22 254.1 24 308.8 23 724.5 Other Countries3 31 367.2 34 027.1 36 830.7 44 293.2 54 556.1 61 981.4 Trade Deficit/ Surplus United States Japan United Kingdom European Union Other OECD Other Countries 1. Includes Puerto Rico and Virgin Islands. 2. Organization for Economic Co-operation and Development, excluding the United States, Japan, United Kingdom, and other European Union countries. 3. Countries not included in the European Union or the Organization for Economic Co-operation and Development (OECD). Source: Statistics Canada Copyright @ 2008 Thomson Nelson Chapter 4: International Business 57