social stories

What was the purpose of the North American Free Trade Agreement (NAFTA)?

• increasing protections of domestic markets

• using tariffs and quotas to increase international trade

• reducing economic barriers to trade

• nationalization of energy and petroleum sectors

Why did the Canadian government enter into the North American Free Trade Agreement (NAFTA)?

• to create a common currency to be used in North America

• to reduce barriers to trade with Canada’s closest neighbors

• to improve trade between North America and Europe

• to protect Canada’s domestic industries from competition

Which of the following is MOST dependent on the ability to exchange currencies?

• protecting domestic industries

• engaging in international trade

• investing in capital goods

• encouraging entrepreneurship

What was a major goal of the countries who signed the North American Free Trade Agreement (NAFTA)?

• defending their population

• raising their standards of living

• protecting their natural resources

• expanding their territory

Liam lives in Canada and wants to start a business of his own. What is MOST LIKELY true of his efforts?

• Liam must work for the government in order to start a business.

• Residents of Liam’s city must vote on whether he can start a business.

• The government will not allow Liam to start a business.

• It will be relatively easy for Liam to start a business.

The Canadian beef industry has begun to struggle due to a major increase in beef imports from Brazil. Canadian producers have lowered prices to make their products more attractive to consumers but have been unable to produce enough to keep up with the volume of Brazilian imports.

What is the BEST way for the Canadian government to protect the interests of Canadian producers and consumers?

• imposing sanctions on Brazil

• placing a quota on Brazilian beef imports

• creating a subsidy for Brazilian beef imports

• imposing an embargo on Brazil

Why would the Canadian government MOST LIKELY impose a tariff on certain imported goods?

• to improve the quality of goods available in Canadian markets

• to help domestic businesses better compete in Canadian markets

• to increase the choices available to Canadian consumers

• to reduce prices of necessary goods for Canadian consumers

How would quotas help Canadian goods better compete with similar foreign goods in Canadian markets?

• by increasing production levels for Canadian goods

• by artificially lowering the prices of domestic goods

• by limiting the availability of the foreign goods

• by improving the quality of the Canadian goods

What tends to result from trade between two countries?

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• reduced competition and increased specialization

• increased competition and reduced specialization

• reduced competition and reduced specialization

• increased competition and increased specialization