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DigiNut
You kids get off my lawn!

Registered: Dec 2002
Location: Toronto, Self-proclaimed Centre of the Universe
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| quote: | Originally posted by emonster4life
Comments on U.S. buying 87.4% of your exports? LOL |
I don't see why that's so shocking. The three major free-trade countries are Canada, Mexico, and the USA, and the USA has by far the largest spending budget of the three. It logically follows that the USA will prefer to buy from Canada and Mexico, and we also prefer exporting to the USA because we know we'll get a fair deal.
It's not that Canada can't find anyone else to export to, it's just that the USA really likes to buy from Canada because we're on the same continent (cheap shipping), have a free trade agreement, and produce higher-quality goods and provide better support than, say, Taiwan. So we end up in a convenient arrangement where the USA buys most of our stuff.
There's nothing strange about this; it's quite common in business. My company has an exclusive arrangement with a particular manufacturer, so 100% of their "exports" go to us, even though less than 100% of our "imports" come from them. Could they sell to somebody else? Sure! The point is, we don't want them to, which is why we signed an exclusive agreement.
And here I thought Americans tended to be more savvy about economics than Canadians. I guess a lot of them are just as clueless...
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Jul-22-2007 20:38
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Owen M
nightdreamer...
Registered: May 2005
Location: The Hammer (Hamilton, Ontario)/ Calgary Alberta
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I would never want to live in the U.S....
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nightdreamer
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Jul-22-2007 23:02
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