Our Changing Economy CHC 2DR Lesson 36

Our Changing Economy Learning Goal: Explain how Canada’s economy was reshaped by internal and external forces. Warm-Up: Journal activity Note and discussion CSI work

Warm-Up: Get your journal. Write a short paragraph (4-6 sentences) explaining How the car opened up our region, OR b) Why we should be grateful to the Famous Five

Key Terms Economy Managing of goods and money Foreign investment Money invested in a country from foreign countries Ex. US companies began buying businesses or building businesses in Canada

Branch plants Factories or businesses operating in Canada but owned by companies in another country Ex. GM, Quaker Oats, Ford, etc.

The Economy Canada was developing lots of natural resources Energy, pulp & paper, and mining (gold, silver, copper, zinc) We began making hydroelectric power (electricity from rivers) New towns started in these locations

Trade Who would buy all of Canada’s resources? Before the war, Britain was our biggest buyer By the 1920s, it was the USA It was so much closer to Canada Who did Canada buy its goods from? Most manufactured goods came from the USA

Foreign Investment American companies started to buy into Canadian companies or open their own factories to take advantage of Canadian resources Gave money to help start big development projects that Canadian companies couldn’t afford on their own

Branch Plants US market was much bigger than the Canadian one (it still is!) US companies could make and sell products for less money Canada put taxes (called tariffs) on products coming in from the USA Allowed Canadian companies to keep making things

Saved Canadian jobs US opened branch plants of their factories in Canada… to avoid the tariff

Branch Plants Lots of investment into Canadian business Advantages for Canadians Disadvantages for Canadians Lots of investment into Canadian business Lots of manufacturing jobs in Canada Prices were lower because there were lots of products Brand-name products were available Many small Canadian manufacturers closed Top management jobs were all American Company decisions were made in the USA Profits went back to the US investors and owners

What do you Think? How would Canadians have felt about more American involvement in our economy? What would happen if there was a recession or the economy went bad? What similarities can you see to today’s economic situation? Does it matter if ownership is Canadian or foreign as long as a company provides jobs?

CSI: Canadian Innovations Continuity and Change When you think of innovation and invention, which three countries come to mind? Compare your ideas with a partner. Is Canada on your list? Why or why not? Canadian geography and climate have not only contributed to our identity but have played a key role in our innovations. With a partner, come up with a list of Aboriginal innovations that helped them overcome the challenges of North America. Brainstorm a list of challenges that Canadian weather and geography have presented for travelers. How have some of these challenges been overcome? What challenges remain?