Part 5: The international context

This part consists of four short-answer questions. The number of points awarded per question will be indicated to you as you go along. Instructions: Answer in the space provided.

Referring to the following statement, answer questions 1 to 4. The press release states that: "at the same time, global competition and the past appreciation of the canadian dollar continue to pose challenges to several sectors".

1)Explain what is meant by "appreciation of the Canadian dollar"

2)Explain why the appreciation of the Canadian dollar poses challenges to several sectors of the Canadian economy.

3)How are net exports measured?

4)Explain what happens to net exports when the Canadian dollar appreciates.