Advantages and

Disadvantages of Trade

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What’s From Where?
KWL Chart - fill out the first two columns
KNOW: Describe some WANT: Explain some things you LEARNED: Describe the main
advantages and disadvantages of want to learn about this topic: ideas that you learned about in
trade you know about: this topic:

Advantages:

Disadvantages:
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
○ Transporting goods around the
world is bad for 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.