Globalization

Trade relationships are important because trade provides consumers and producers with a variety of goods and services at lower prices. Since the signing of the NAFTA agreement Canada – U.S trade relations have risen to the point where “80% of Canada’s merchandise exports” (pg. 130 Business Essentials) are to the United States. Canada’s dependency on the U.S is very strong and many believe that, “Canada has too many of its eggs in one basket.” (pg. 130 Business Essentials) The mounting concern of China, the fastest growing economy in the world today, affecting Canada- U.S trade relations is becoming a reality. In the article “China beats out Canada as top exporter to U.S” Heather Scoffield states that China has replaced Canada for being the number one seller of goods to the U.S. Nancy Hughes Anthony, president of the Canadian chamber of commerce believes that this new statistic is, “perhaps a wake-up call that people need”,(Globe and mail) Although both Canada and the United States are taking advantage of Chinas market the possibilities of a decrease in their current trade patterns is bound to happen.

Countries rely on imports to supply them with goods