1. Article Summary
The article talks about the free trade agreement between Canada and Japan. According to the article, it still is a talk between two nations. Canada says it will try to get the best deal for the country and its economy. The nation, Canada, is trying to export to Japan to increase its exports. The article says that Canada is a major importer and that it imports more than it actually exports. The Canadian government wants to increase its exports, especially its liquefied gas, to Japan. Moreover, the two governments are also planning to research on liquefied gas. According to the article again, an agreement with Japan will be significant because of the geo-politics of the Pacific region. 2. Relevance to Chapter
This given article is related to Mercantilism our class has studied in Chapter 6. Merchandising is when the nation wants to maximize its exports and minimize its imports. It is a goal on increasing the gold. In this case the country will have a trade surplus, the GDP grows and the country becomes wealthy. 3. Critique and Insight
In some of the previous articles in Canadian newspapers, it was mentioned that the Canadian economy was headed downhill. One main reason for this decline in economy could be the trade deficit of $2.3-billion Canada might have been experiencing. As a result, the employment rate was declining. Taking an action towards mercantilism certainly is a good decision in this case as increasing exports while minimizing the imports will turn the deficit into a trade surplus. This will result in a high GDP, people have more money, more jobs, and the unemployment will decrease. Mercantilism will enable to bring Canada out of the bad economy that it has been dealing with recently. People will find more jobs and even get better salaries because the GDP rises. China has been following the Mercantilism strategy of growth for a decade now. Figure 1 shows us the fastest growing Asian countries. We can see China, by...
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