Module 4.5

This module will define and describe the basic principles of macroeconomics and their application to forest resources. The basic macroeconomic circular flow model is defined and extended to include natural capital. The effects of international policies on Canada’s ability to compete in national and global market are studied, and Canada’s evolving position in global markets is defined with opportunities for renewal of the forest products industry and a vision for the future. A full cost analysis for multiple use where information is available is explained to understand the role of alternative uses of forest land, and identify optimal combinations among competing land uses.

Module Objectives

The candidate will have knowledge of:

• Basic principles of macroeconomics and their application to forest resources
• The effects of international policies on Canada’s ability to compete
• Canada’s evolving position in global markets
• Full cost analysis for multiple use where information is available

The candidate will demonstrate that they:

• Recognize the effects of national and global trends on supply and demand, and flow of forest-based products including price and production

Module Schedule

Module 5 starts with an introduction to the basic principles of macroeconomics and how these are used to measure economic growth. An introduction to the basic macroeconomic circular flow model and how it incorporates natural capital is provided. The theory of short run and long run economic growth using macroeconomic indicators incorporating impacts on natural capital is studied. The second unit focuses on international trade and the impact of international policies on forest industry competitiveness. A particular emphasis is laid on the impact of softwood lumber trade dispute between the US and Canada on the forest products industry. The third unit focuses on the Canadian forest products industry evolving position in global markets, with a particular emphasis on the forest industry crisis and the opportunity for renewal and a vision for future. The fourth unit recognizes the role of full cost analysis for multiple use where information is available. The focus is on understanding the implications of allocation of land among alternative uses, and to identify the optimal combinations among competing land uses.

See course content below to get started!