5 reasons Canada trades with Mexico?

Answer 1

Canada is an industrialized nation that specializes among other things, in exports of capital goods such as industrial machinery, steel, motor vehicles and parts, timber and aluminium.

On the other hand, Mexico is a developing country which is growing, and needs such capital goods to develop its infrastructure and to manufacture the consumer goods that it then exports to other countries such as the United States.

Canada and Mexico are located in the North American continent, close to the United States. Both countries have a common "end market" that allows for natural business associations. For example, Canada builds engines that are exported to Mexico. Then Mexico assembles full cars with such engines and then exports them into the United States.

Canada is cold country, while Mexico has a subtropical climate. Mexico cultivates Oranges, apples, table grapes, tangerines, grapefruit, pears and raisins; followed by bananas, mangoes, lemons, limes, watermelons, peaches, nectarines, plums, avocados, pineapples, and strawberries. Much of this fruit is exported to Canada during the winter season.

The European Union is a block of 27 states that combined, have more population and a bigger economy than that of the United States. To prevent Mexico and Canada falling into the European Union's "sphere of influence", the United States pushed for closer economic integration through the North American Free Trade Agreement (NAFTA) which increases trade among its member states.

Answer 2

Same historical roots, English speaking, proximity, importing, exporting

Answer 3

To get the vegetables and fruit they want all year round

Answer 4

Canada trades with India because many Indians have residence in western Canada and desire Indian foods etc.