It's the expected route for your wife to gain admission to Canada, yes. Were you born in Canada or naturalised as a citizen before your children were born? If yes, then you may pass your citizenship on to them, so you can apply for their proof of citizenship and then apply for passports for them in the normal fashion. You would definitely need to sponsor your wife for permanent residence, though.
Start by reading Leon's first post in the thread at the very top. Then get familiar with the forms and various requirements found here:
http://www.cic.gc.ca/english/information/applications/fc.asp.
Ask questions if you need any further assistance with the forms and requirements.
P.S. As a Canadian residing exclusively abroad, you will need to include proof you intend to re-settle in Canada when your wife is granted PR. Such proof includes plans for a home, job, school for your children in Canada, and so on.
Immigration Forum
