Learning Strand:
The learning strand that this relates to is business, trade, and economy. This affects the economy because the consumers have to pay more for supplies. This is all because the currency rate in Canada is low. Since Canada has to pay more for imports, government and businesses are now increasing the prices on items so that there is a profit being made in order to get the economy back on its feet. If the rate of currency gets lower, there will be less trade happening between countries because Canada may not be able to afford as many imports. When the prices of common supplies increase, there are less people buying the products because it is too costly When consumers do not buy the products, the companies lose business and there are not as many sales being made. This affects the economy as a whole because there is decreased business and profit being made and it could lead to a downfall in the Canadian economy.
Thoughts and Opinions:
My opinion on the issue is that when increasing the prices of local products in Canada, it does restrict consumers from the buying the supplies. They may purchase fewer items due to it being more expensive and they do not want to spend as much money on the items because they are on a limited budget. Some may not be able to afford such expensive products. It will be harder for consumers to get the products they need because everything is so costly. I feel that the businesses do have to increase it because they need a profit, but I feel that they will lose more sales as the prices increase. This all is because of currency dropping to a low rate and it not only causes companies to be unhappy but the consumers as well. It is concerning to know that prices will increase by a lot in the next year.
The 5 W's breakdown:
Who: The Canadians.
What: The low value of Canadian dollar is causing the common supplies within Canada to be more expensive and leading to drop in sales in profit in Canadian economy.
When: It takes place in the month of February to March and can lead an effect till the year of 2016.
Where: It happened in Canada.
Why: The prices have all been increased due to the drop in Canadian dollar.
How: The Canadian imports are now more expensive due to low currency which causes government to increase the prices on the items and in order to receive some profit for the businesses within the economy.