Barriers to International

Trade

BBB4M
The Structure of Economies

Primary Industries:

● Directly using natural

resources
● Examples?
The Structure of Economies

Primary Industries:

● Directly using natural resources

● Examples?
○ Farming
○ Fishing
○ Forestry
○ Mining
The Structure of Economies
Secondary Industries:

● Processing or transforming
raw materials into
manufactured goods
● Examples?
The Structure of Economies

Secondary Industries:

● Processing or transforming raw

materials into manufactured
goods
● Examples?
○ Heavy/light manufacturing
○ Construction
○ Food processing
○ Fashion
The Structure of Economies
Tertiary Industries:

● Sale and exchange of goods

and services
● Examples?
The Structure of Economies

Tertiary Industries:

● Sale and exchange of goods

and services
● Examples?
○ Banking
○ Lawyer
○ Teacher
○ Waiter/waitress
The Structure of Economies

Quaternary Industries:

● Processing knowledge and

information
● Examples?
The Structure of Economies

Quaternary Industries:

● Processing knowledge and

information
● Examples?
○ Programming
○ Researching
○ IT
Reflection

● What do you know about Canada’s geography that would help it

have a strong primary industry?
● Think about your home country. Which of the 3 types of
industry do you think it relies on most? Explain.
● Why is it important for a country to be strong in all 3
types of industry? What could happen if a country is not
strong in all industries?
Barriers to Trade?
Tariffs

● Taxes on imports that are

imposed by the local
government
● Increase the price of
imported products
● Can be used to protect
local products
Currency Fluctuations

● Currency exchange rate

affects the value of goods
traded with other
countries
● Particularly if the value
of currency changes
between time of ordering
and time of delivery
● www.xe.com/currencycharts/?from=CAD&to=CNY&view=10Y
Currency Fluctuation

● In 2007, $1CAD was about ¥8CNY. If a Canadian company

wanted to import ¥2CNY T-shirts, they could buy 4 with
$1CAD.

● Today, $1CAD is about ¥5CNY. The Canadian company can

only buy 2.5 T-shirts with $1CAD now.
Investment Regulations

● Foreigners must follow

laws related to foreign
investment
● This could limit the
amount of foreign
investment
Environmental Restrictions

● Restrictions on imports to
protect domestic resources
● Inspections may be
required for certain
resources
● If products do not meet
standards, they may not
enter
Foreign Relations and Trade Sanctions

● Relationships between
countries directly affect
their trade
● If one country wants
another to do something,
they may impose
“sanctions”, ex. Stopping
trade with another country
Safety Regulations

● Foreign imports must meet

the standards of the
importing country
● In Canada, there are laws
such as the Food and Drugs
Act, Canadian Food
Inspection Act, etc.
Worksheet
Reflection Questions

● Should a country like China be reducing barriers of

trade, or should China make more barriers? Explain.
● Trade without barriers is known as “free trade” - could
this be beneficial to China in any ways?
● How do immigrants or visitors to China cause a demand for
foreign products? Do you think this is a good thing? Why?