Advantages and

Disadvantages of Trade

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What’s From Where?
KWL Chart - fill out the first two columns
KNOW: Describe some
advantages and disadvantages of
trade you know about:
Advantages:
● Can get things you don’t
have
● Increase the global
economy
● Can spread culture
Disadvantages:
● Could lose culture by
bringing in other cultures
● Benefits big countries more
than small ones
● Paying taxes/tarriffs
WANT: Explain some things you LEARNED: Describe the main
want to learn about this topic: ideas that you learned about in
this topic:
● How do countries decide
whether to trade with each
other?
● How do countries convince
other countries to buy their
stuff?
● The limit of trading between
two countries?
Advantages

● Meeting consumer needs

● Job creation
● Attracting investment
● New technology
● Diverse products and services
● Specialization
Advantages
Meeting Consumer Needs

● International trade allows

us to have things that we
want
● Ex. fresh fruit available
year-round
Advantages
Job Creation

● Global trade creates many

jobs all around the world
● ⅓ jobs in Canada depends
on exports
Advantages
Attracting Investment

● Foreign companies may

invest in offices,
warehouses, manufacturing
plants in another country
● Investment creates other
jobs like construction,
sales, management, etc.
Advantages
New Technology

● Technology created in one

country can be patented and
used in other countries
● Ex. iPhone technology was
invented in USA but is
available all over the world
Advantages
Diverse Products and Services

● We can now enjoy products

from all over the
world(fruits, different
brands, technologies)
● May result in lower
prices, better quality,
etc.
Advantages
Specialization

● Focusing on certain
products could increase
quality, decrease
production costs
● Can gain a good reputation
for producing a certain
type of good or service
Disadvantages

● Political issues
● Cultural identity issues
● Social welfare issues
● Environmental issues
● Specialization
Disadvantages
Political issues

● Buying products may indirectly

support governments with
different political systems
○ Russia is now facing
sanctions for their actions
in Ukraine
● By buying from other countries,
you aren’t supporting your own
country’s businesses
Disadvantages
Cultural Identity Issues

● In some countries, they do

not follow their own
popular culture
○ Ex. Canadians watch
American movies and
listen to American
music
Disadvantages
Social Welfare Issues

● Some countries do not have

the same standards for
worker and product safety
● Buying from these
companies continues these
issues
Disadvantages
Environmental Issues

● Other countries may not have

the same environmental
protection standards
○ Many products we buy
internationally may be a
result of harming the
environment
Disadvantages
Specialization

● It can be very risky to rely

heavily on one or two
products
○ Other countries could
decide to produce the
same good/service
○ This may force countries
to lower their prices,
impacting the whole
economy
Textbook Reading

● Read page 18-21

● Summarize/define each of the three major industries in
Canada(primary, manufacturing, services)
● Give examples for each
● Reflection: After learning about the many advantages and
disadvantages that international trade has, explain
whether you think trade is an overall good or bad thing
for your home country. Try to think about the products
your country might export or the products you like to use
each day.
KWL Chart

● Fill out the rest of your KWL Chart

● After learning about the many advantages and
disadvantages that international trade has, explain
whether you think trade is an overall good or bad thing
for your home country. Try to think about the products
your country might export or the products you like to use
each day.