Chapter 11 Blog

Summary

The article I found is about Canada’s trade deficit has decreased to $1.3 billion in August. Canada's merchandise exports rose 3.1% to $34 billion after two months of declines in August and increased 2.9% in volume. Industrial products and goods have grown more than three-quarters and export has increase 2.9% and still heading upwards since May 2009. While exports are increasing, imports has 0.5% to $35.3 billion, as prices decreased 0.8%. Import volume has increased 0.3% in August and has always been a trend to increase since March 2009. The declines in imports are mainly automotive parts and industrial goods. United States’ exports also increased by 2.7% but their imports declined 3.3%. Other countries’ export boosted 4.2% and imports raise 4.5% because they increase their trade with the European Union.
http://www.cbc.ca/money/story/2010/10/14/trade-deficit-august.html

Connections
Connections between this article and chapter 11’s section in the textbook is that Canada’s economy hasn’t been the best so there’s a decrease of sales. For example, many people have avoided spending too much money and trying to save up so they stay away from buying goods like a car. Businesses will have to try attracting customers by lowering prices, or spending more money on advertisements, but it’ll decrease sales. Another connection is that it affects the business with their inventories which cause a downhill fall for our economy. For example, if there’s a decrease in imports of goods into Canada, there will be decrease in the company’s purchases. People would rather go to places like U.S. or Japan for goods and it’ll increase competitions. The goods will lack in different varieties. Basically, the decrease in imports will cause a downfall for our economy.

Reflection
Keeping up with the news would definitely benefit people that are involved with business. It’ll help them keep track of things they need to do like exporting goods to other countries to earn better profit, or promoting products at a certain time. Also it’ll affect people who want to start a business. Since automotive parts decrease on imports, it wouldn’t be a smart idea to start a business that would sell cars.  It will affect us consumers because we wouldn’t be able to get the goods that we need. We would have to go to another place to get our goods. The only positive thing about decrease in imports is that they wouldn't have to use much materials that would greatly affect our environment. In conclusion, decrease on imports would affect everyone negatively.