Economic Definitions (P ) For the most part, this section deals with the Economy and Economic Activities… In regards to Canada – Primary industries (raw materials) i.e. Hydroelectric, coal, oil, and natural gas – Secondary industries (manufacturing) i.e. Production of clothing from cotton or manufacturing electronic devices – Tertiary industries (business and provision of services) i.e. Banking and marketing

Economic Issues in Canada (P ) Regional Disparities: Canadian economic activity varies from coast to coast. – Ontario and Quebec account for almost two-thirds of the national income, while the Atlantic Provinces produce only 5% Known as “regional disparity”

Ways to deal with Regional Disparity Decentralization: move economic activities from the core to the periphery – How? Government can provide tax breaks to businesses that move to the periphery Equalization Payments: federal government program to reduce fiscal ($$) disparities amongst provinces – Less wealthy provinces can provide services similar to that of the wealthy provinces (haves & have-nots) – federal gov’t transferred $10 Billion a year to the provinces in need of the capital influx

Globalization (P ) Globalization: the trend towards a more integrated world economy. – It involves the “bringing down of barriers between countries that hold up a free flow of goods, services, and people” Also includes the integration of culture, technology, and governance Positives & Negatives: – (P) Free market = engine of human progress – (P) Open market = allows for true potential of human society – (N) Gap between rich & poor = widening – (N) Less people making decisions for more people It is a process that some feel is happening so fast that governments cannot foresee, or deal with the consequences… – Rules need to be created to manage the (P)s and the (N)s