The Economy

Economic Activities Postindustrial Economies The service industry has been the area with the largest economic growth for the United States and Canada 75 percent of the region’s workers are employed in service jobs. Many of these jobs are located in the central business district of urban areas. Rising postindustrial economies are reflected in the region’s high- tech industry because they are not dependent on location. Instead, they are influenced by personal choices. Manufacturing Accounts for about 20 percent of both the U.S. and Canadian economies. Advance technology has transformed manufacturing in the region. Factories are able to produce greater quantities with fewer workers. In the late 1900s, companies began moving away from the Manufacturing Belt and heading south. These older industrial areas were left with abandoned factories and rusting steel mills. Many of these old factories have since been remodeled and put to use in new industries.

Economic Activities Transportation equipment and machinery make up a significant amount of the regions manufacturing. Food processing and manufacturing wood- based products are important manufacturing activities. Agriculture Farming in both regions is overwhelmingly commercial, with goods produced for sale. Large commercial corporations account for only 5 percent of farm ownership. 1 billion acres of land are used for agriculture in the U.S. Canada has 167 million acres devoted to agriculture. Its land is much less arable land than the United States. The average size of farms in both countries has increased, but the number of farmers has decreased. Causes: High cost, unpredictable consumer demand, natural disasters and the time and hard work needed.

Economic Activities Key Agricultural Products Cattle ranching- western, southern and Midwestern U.S. and Canada’s Prairie Provinces. Wheat- Canada’s Prairie Provinces and the U.S.’s Great Plains. Corn- the Corn Belt in the U.S. and the provinces of Quebec, Ontario and Manitoba. Agricultural Technology The development in breeds of cattle, improved food sources and automation has opened up ranching to all areas of the U.S. Transportation and Communication The Automobile The automobile has been the most popular means of transportation since WWII. Creates the need for heavy investment in highways, roads and bridges. The network of U.S. roads is densest along the east and west coasts, and the Mississippi and Ohio River valleys. Canada relies on a smaller network of roads that are located mainly in the southern portion of the country.

Transportation and Communication The burning of gasoline by automobiles has created a problem of air pollution . Finding a more efficient way to use fuel and to find an alternative to using automobiles is a top priority for government agencies. Other Means of Transportation Airports are peoples choice for a means of long-distance travel. Passengers trains and buses account for a small portion of travel. The transportation systems of the region also move goods. 35 percent of the regions freight is transported by railroads, while 15 percent is transported by inland waterways. 20 percent of the regions fright is transported by long- haul trucks Airplanes carry only a small portion. Both countries use the Great Lake- St. Lawrence Seaway System to transport goods. The Mississippi River is used to transport U.S. products.

Transportation and Communication The development of communication networks is a major reason for the regions success. Cellular and digital services made communication more mobile. Using the internet and e-mail make businesses and personal transactions instantaneous. Thousands of television and radio stations, newspapers and magazines provide news. These are publicly owned in Canada, but privately owned in the U.S. Trade and Interdependence Exports and Imports The United States suffers from a trade deficit that is hundreds of billions of dollars. U.S. spends more on imports than it earns from exports. Because of its large consumer population and growing industry. Canada enjoys a trade surplus , earning more than it spends. Canada’s energy needs are much less because of its smaller population.

Trade and Interdependence NAFTA In 1989, Canada and the United States signed the U.S.- Canada Free Trade Agreement (FTA). Removed trade restrictions between the two countries. The two countries along with Mexico signed another agreement in 1994, the North American Free Trade Agreement (NAFTA). Did the same things as FTA, but also increased economic activity and strengthened their political and economical position in the global economy. The United States has recently sought lower production and labor costs by outsourcing. NAFTA allows U.S. companies to set up assembly plants in Mexico were costs are lower.

Trade and Interdependence United Against Terrorism After September 11, the United Sates and Canada created the Smart Border action plan to enhance border safety. It monitors the flow of people and goods, securing infrastructure and sharing information. The Free and Secure Trade (FAST) program establishes complete and reliable records for all cargo. Intelligence sharing and coordination has increased greatly since the Smart Border program was implemented. Tunnels, bridges and other infrastructures are watched by both countries. X-ray machines are used to screen people and cargo.

People and Their Environment

Managing Resources The natural resources of Canada and the U.S. have not always been responsibly managed. Much of the region’s old- growth forests have been destroyed by clear- cutting. It has endangered wildlife and left land subject to erosion. Many wetlands are disappearing due to conversion to agricultural or urban uses. Wetlands are usually buffers for coastal areas from storms and floods. Mismanagement of the delicate balance between species in various ecosystems has also been a problem. Overfishing has depleted many of the region’s fisheries. The introduction of nonnative plants and animals has caused environmental problems.

Human Impact Acid Rain Precipitation carrying high amounts of acid material. Affects large areas of the eastern U.S. and Canada It forms when chemical emissions react with water vapors in the air. Corrodes stone and metal buildings, damage crops and pollutes the soil. Especially damaging to the regions water. Plants and fish cannot survive in highly acid water. Over time, lakes can become unable to support most organisms. Most of the acid rain in Canada comes from the U.S. The U.S. and Canada are working together to reduce emissions. Smog Forms as the sun’s rays interact with automobile exhaust gases and industrial emissions. It is a visible haze that can damage or kill plants and can harm people. Officials measure air quality on a daily basis. If levels reach a dangerous point, officials issue an alert warning urging children, elderly and people with respiratory problems to stay inside.

Human Impact Air pollution in some major cities has been substantially decreased due to clean- air practices. Fuel efficient hybrid vehicles are being produced. Water Pollution Water systems have become polluted because of sewage and industrial and agricultural wastes. Illegal dumping, leaks into ground water and chemical runoff Water pollution has a harmful effect on marine life, birds and other animals. Polluted water supplies also endanger human life. Water pollution can speed the process of eutrophication. Reversing the Effects of Pollution. The U.S. and Canada signed the Great Lakes Water Quality Agreement, and the U.S. passed the Clean Water Act in an effort to restore quality water. A new area of concern is the U.S.- Mexico border due to rapid industrial growth. Agencies are monitoring the environmental effects of NAFTA and suggesting ways to reduce pollution.

Future Challenges Global warming is an area of concern for the people of Canada and the U.S. Experts agree that human activity has accelerated the warming trends. Carbon dioxide in the atmosphere is higher than it has been for thousands of years. Global warming effects can be seen in the Arctic regions of Alaska and Canada. The U.S. and Canadian governments are working to lessen the dependency on fossil fuels. Subsidies are offered and companies are pressured to limit emissions. Renewable energy sources are being examined to lessen the dependency on fossil fuels.