Canada's Economy

How to read this chapter

A trading nation

  • Canada has always been a trading nation and commerce remains the engine of economic growth.
  • We could not maintain our standard of living without engaging in trade with other nations.
  • In 1988, Canada enacted free trade with the United States. Mexico became a partner in 1994 in the broader North American Free Trade Agreement.
  • Canada has one of the ten largest economies in the world and is part of the G7 group of leading industrialized countries with the United States, Germany, the United Kingdom, Italy, France and Japan.

Canada's industries

  • Canada's economy has three main types of industries: service industries, manufacturing industries and natural resources industries.
  • Service industries provide jobs in transportation, education, health care, construction, banking, communications, retail services, tourism and government. More than 75% of working Canadians have jobs in service industries.
  • Manufacturing industries make products to sell in Canada and around the world: paper, high technology equipment, aerospace technology, automobiles, machinery, food and clothing.
  • Natural resources industries include forestry, fishing, agriculture, mining and energy. A large percentage of Canada's exports are natural resources commodities.

Canada and the United States

  • Canada and the United States are each other's largest trading partner, and together have the biggest bilateral trading relationship in the world.
  • Over three-quarters of Canadian exports are destined for the U.S.A.
  • Canada exports energy products, industrial goods, machinery, equipment, automotive, agricultural, fishing and forestry products, and consumer goods every year.
  • Millions cross what is traditionally known as "the world's longest undefended border" every year, in safety.
  • At Blaine, Washington, the Peace Arch is inscribed with "children of a common mother" and "brethren dwelling together in unity".

Read it on canada.ca

  • Question 1 of 10

    How does Discover Canada describe the Canada-U.S.A. trading relationship?

    Answer options

    Correct answer: The biggest bilateral trading relationship in the world

    Source from the guide

    In fact we have the biggest bilateral trading relationship in the world.

    The biggest bilateral trading relationship in the world.

    Discover Canada · about page 42Discover Canada — Large Print · page 92

  • Question 2 of 10

    What share of Canadian exports is destined for the United States?

    Answer options

    Correct answer: Over three-quarters

    Source from the guide

    Over three-quarters of Canadian exports are destined for the U.S.A.

    Over three-quarters.

    Discover Canada · about page 42Discover Canada — Large Print · page 92

  • Question 3 of 10

    Which of these does Canada export billions of dollars worth of every year?

    Answer options

    Correct answer: Energy products

    Source from the guide

    Canada exports billions of dollars worth of energy products, industrial goods, machinery, equipment, automotive, agricultural, fishing and forestry products, and consumer goods every year.

    Energy products — along with industrial goods, machinery, equipment, automotive, agricultural, fishing and forestry products, and consumer goods.

    Discover Canada — Large Print · page 92

  • Question 4 of 10

    In what year did Canada enact free trade with the United States?

    Answer options

    Correct answer: 1988

    Source from the guide

    In 1988, Canada enacted free trade with the United States.

    1988. Mexico became a partner in 1994 in the broader North American Free Trade Agreement.

    Discover Canada · about page 42Discover Canada — Large Print · page 90

  • Question 5 of 10

    Which group of leading industrialized countries is Canada part of?

    Answer options

    Correct answer: The G7

    Source from the guide

    Canada … is part of the G7 group of leading industrialized countries with the United States, Germany, the United Kingdom, Italy, France and Japan.

    The G7, with the United States, Germany, the United Kingdom, Italy, France and Japan. Printed copies of the guide say "G8" and include Russia, which was suspended in 2014.

  • Question 6 of 10

    What does Discover Canada say integrated Canada-U.S.A. supply chains do?

    Answer options

    Correct answer: Compete with the rest of the world

    Source from the guide

    Integrated Canada-U.S.A. supply chains compete with the rest of the world.

    They compete with the rest of the world.

    Discover Canada · about page 42Discover Canada — Large Print · page 92

  • Question 7 of 10

    Who is Canada's largest trading partner?

    Answer options

    Correct answer: The United States

    Source from the guide

    Canada enjoys close relations with the United States and each is the other's largest trading partner.

    The United States. Each is the other's largest trading partner, and together they have the biggest bilateral trading relationship in the world.

    Discover Canada · about page 42Discover Canada — Large Print · page 92

  • Question 8 of 10

    What is the Canada-U.S.A. border traditionally known as?

    Answer options

    Correct answer: The world's longest undefended border

    Source from the guide

    Millions of Canadians and Americans cross every year and in safety what is traditionally known as "the world's longest undefended border."

    "The world's longest undefended border". Millions of Canadians and Americans cross it every year in safety.

    Discover Canada · about page 42Discover Canada — Large Print · page 92

  • Question 9 of 10

    Which of these is a manufactured product named in Discover Canada?

    Answer options

    Correct answer: Aerospace technology

    Source from the guide

    Manufactured products include paper, high technology equipment, aerospace technology, automobiles, machinery, food, clothing and many other goods.

    Aerospace technology. Manufactured products also include paper, high technology equipment, automobiles, machinery, food and clothing.

    Discover Canada — Large Print · page 91

  • Question 10 of 10

    For manufacturing, who does Discover Canada name as Canada's largest international trading partner?

    Answer options

    Correct answer: The United States

    Source from the guide

    Manufacturing industries make products to sell in Canada and around the world … Our largest international trading partner is the United States.

    The United States.

    Discover Canada · about page 42Discover Canada — Large Print · page 91

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