Professional Documents
Culture Documents
1.4: Mark-up
o Note that some companies get their goods made cheaply in sweatshops and other
poor working condition areas (i.e. where the workers rights are not protected by law
and unions); the company will then charge a significant mark-up and keep the difference
as profit. Companies that buy items ethically have to pay more for the good, but must
still charge a mark-up in order to make a profitin this situation, the customer usually
has to pay more, but the company often does not make as much. Therefore, companies
that exploit workers usually make more money than ethical companies do, because the
vast amount of people still buy the cheaply made product.
1.5: Currency
o Goal: assist students to break the stereotype of the developing world (i.e. not only
exploited countries and/or corrupt governments)
Ask students why are there different currencies in different countries?
Lead to answers such as:
o the economy and resources, goods, and services that are sold
between countries;
o The exchange rate between any two currencies is determined
by relative money demand and money supply between the two
countries.).
o Trade depends on infrastructure, and infrastructure in turn
depends on investment. The more developed a country is, the
more money it is capable of making. So in talking about poor
countries, we are talking about Less Economically Developed
Countries (LEDCs)this is a better term than the developing
world.
Ask students Why would a country not be developing its economy?
Geographical factors:
o Climate, landscape, natural resources, stability
Political Factors:
o Poor management, corruption, trade laws, and political
instability
Cultural and social factors:
o Discrimination, population, and culture
Extension: How can we help to change these factors?
2.1: Wages
o Minimum Wage
Why do some countries have a minimum wage? (Answers may include: To
protect workers rights; to not exploit workers; to pay a livable wagethe
minimum amount of money/income needed to meet basic needs in that
area/economy; in order for people to not be living in poverty)
What might happen if a country does not have a minimum wage law? (Answer:
Could go either way: some countriese.g. Sweden, Demark, Iceland, Norway
1927 The Old Age Pensions Act was enacted, permitting the
federal government to give assistance to provinces that
provided a pension to British subjects 70 and older.
Note: After the war, and approaching the dirty 30s, there were
financial issues for the elderly. Canadians bound together to give
them a better way of life. At the time though, this program was a
strictly anti-poverty measure, that often humiliated the
elderly.
1952 The Old Age Security Act came into force, establishing a
federally funded pension. It replaced the 1927 legislation
that required the federal government to share the cost of
provincially run, means-tested old age benefits.
1965 Amendments to the Old Age Security Act lowered the
eligible age for the OAS pension to 65, one year at a time,
starting in 1966 at the age of 69.
1966 The CPP and QPP came into force on January 1, 1966.
o Information on taxes:
Note that while doing federal taxes, one may use methods like the website
SimpleTax.ca (free to use) but donate for the service. This allows all low-income
people to be able to use the service without sacrificing other expenses.
(Explanation: it is a legal requirement to do/submit taxes, but low-income
citizens may have to choose between this legal obligation and paying rent, etc.
because methods like Turbo Tax or H&R Block charge fees (minimum $20, but
can range up to $150); instead, those who can afford it should keep free
services available for all).
o CPP $3500 Exemption:
Ask students why would an amount be exempt from deductions? Lead to: CPP
was created to assist the poor; they are not wanting to further exploit the poor.
Therefore, the lowest income individuals are able to keep more of their money.