The US and Canada Today Ch 7

Economic Activities Both are Free Market: allow people the freedom to own, operate, and profit from their own businesses Canada: government owns and administers many services, broadcasting and health care US: private companies own and operate broadcasting and health care Post-industrial economies: less emphasis on heavy industry and traditional manufacturing

Agriculture Most farms are owned by farming families US: 1 billion acres for livestock grazing and farming Canada 167 million (less arable land) 2% Americans and 4% Canadians work in agriculture US/Canada: beef, milk, eggs, corn, wheat, and other grains Corn belt – Ohio to Nebraska (formal region)

California – tomatoes, lettuce,peas, asparagus, okra, avocados, grapes, and strawberries Florida – oranges Idaho – potatoes Hawaii - sugarcane, pineapples, and bananas

Manufacturing 20% of the economy in both countries Employs about 20 percent of the regions workforce

Service Industry Largest area of growth in both US/Canada Employs about 75% Government, education, health care, tourism, entertainment, banking, and real estate High-tech equipment California – Silicon Valley: 20 of the world’s 100 largest high-tech companies Texas – more than 1,000 software companies in Austin N. Carolina – Research Triangle: Raleigh, Durham, and Chapel Hill; biotechnology

Automobile Most popular means of personal transportation Status symbol US: 3,900,000 mi roads/hwys Canada: 550,000 mi of roads/hwys Trans-Canada Highway: Victoria, British Columbia, to St. John’s, Newfoundland (4,860 mi)

Planes, trains, and buses Popular for long-distance travel Passenger trains and buses account for a small portion of travel Railroads – transport about 35% of goods Waterways – boats transport 15% Trucks – transport about 20% Planes – lg amount of overnight delivery Pipelines – carry 25% of goods (oil and gas)

Communication Phone, internet, and mail are primary sources of communication Government owned in Canada Privately owned in US (except for USPS)

Trade & Interdependence US: 2nd in the world in exports (10% of world’s exports) Chemicals, agricultural and manufactured goods, raw materials (metals, iron ore, and cotton) US spends more on imports than we make on exports = trade deficit Canada earns more on exports than it spends on imports = trade surplus

NAFTA 1994 pact: North America Free Trade Agreement Canada, United States, and Mexico Prohibits free flow of labor between countries Removes trade restrictions Outsourcing: setting up shop somewhere outside the US because labor is cheaper = cheaper products and jobs for foreign workers