Good evening, I am writing a paper on The Impact of International Trade on Canada

Can you please review and provide feedback?

Description of trade

Canada exports what they have in abundances like timber, fish, and fur. They, in return, import manufactured goods that they cannot produce locally. However, the increase in international trade has enabled intra-industry trade, where two industries trade with each other. Intra- industry trade has dramatically expanded, enabling the unbundling of various stages within the production process.

In the automobile industry, Canada imports and exports auto parts in various stages of production within the industry. The exportation and importation go further to even finished automobile products such as tractors. The unbundling potential is a result of technological innovations within the information communication technology that made it easy for logistics required to control the supply chain within international borders. Simplification of trade restrictions can have positive effects on trade flows and the economy. Lowering trade barriers makes it less costly for industries in the allocation of stages of production to different countries where they can be efficiently produced at a lower cost (Olayele).

Lowering trade barriers helps in expansion as efficient producers are in a position to supply to broader markets. In the process, their costs are lowered as they move to a further, more extensive scale. The other producers who are less efficient may fail.

In 1994 Canada entered into a trade agreement North American Free Trade Agreement, also referred to as NAFTA, which is an excellent example of lowering trade barriers as an economic impact. The employment rate within the manufacturing industry declined in the process, but productivity increased in the long run. After which the employment opportunities increased within the economy. The technical improvement also supported the general increase in workers' earnings (Rajesh Babu, and Kaintura).

Both exports and imports help in delivering the benefits of barrier-free trade. Firms in Canada compete within foreign markets by using imported costs that are of lower costs, hence raising productivity. Opening trade benefits also come from increased competition