Canada's Reliance on International Trade Makes the Country Less Susceptible

question 39

True/False

Canada's reliance on international trade makes the country less susceptible to the influence of external events than a country less dependant on external trade relationships.

---

Definitions:

Surplus

The situation in which the quantity of goods produced exceeds the quantity of goods demanded. Surpluses can result in price drops for products or services, reflecting a mismatch in supply and demand.

Price Ceiling

A cap set by authorities on the maximum price for a good or service, aimed at safeguarding consumers.

Price Floor

A minimum price set by the government or other agency, below which a product cannot legally be sold.

Shortage

A situation where the demand for a product or service exceeds the supply available.