C HAPTER 7.1 & 7.2 R EVIEW

F REE M ARKET E CONOMY Free Market: allows people the freedom to own, operate, and profit from their own business Pros: Businesses can hire employees & pay them Laws protect private property rights, employment opportunities & the health and safety of workers USA & Canada are both post-industrial societies, which places an emphasis on service & high tech businesses rather than industry & manufacturing DTM: Stage 4 Overall trend: agriculture  industry  services

U NITED S TATES VS. C ANADA USA Mostly, the government does not interfere Private organizations handle services Broadcasting regulated by the FCC (Federal Communications Commission) but companies like ABC, CBS are privately owned People choose health care plans---but are now required to have it Canada SOME government interference! Government owns and administers more services than the USA Health care is publicly funded, not privately CBC: Canadian Broadcasting Corporation—owned by the government

U SE OF AGRICULTURE Overall trend: Focus on businesses & services! Still, use of agriculture is seen in both countries Characteristics: Commercial Farming, but usually with family-owned businesses Use of co-ops Largely used as cropland & for livestock to graze Canada has less arable (fertile) land to use for farming than the USA, but both countries still dedicate many acres for farming

W HY ARE THE NUMBER OF FARMERS DECREASING ??? High cost of farming Have to use expensive machinery, fertilizers, and chemical pesticides Unpredictable consumer demand We don’t know what people want, and our ENTIRE economy depends on supply & demand. If people don’t want a product, farmers could lose money Risk of natural disasters Time-consuming VERY hard, physical work

K EY A GRICULTURAL P RODUCTS The US & Canada lead in the production of… Beef Eggs Milk Corn Wheat All of these products are shipped within the country and around the world!

T HE W HEAT B ELT Wheat Belt = prairie provinces of Canada & Great Plains of the USA Type of wheat grown depends on climate Northern plains: shorter growing season & cooler climate  spring wheat (planted in the spring, harvested in the fall) Southern areas: winter wheat (early summer harvest)

T ECHNOLOGY H ELPS BREAK GEOGRAPHIC BARRIERS ! Cattle ranching was restricted to wide- open spaces Dairy farms were mainly in “America’s Dairyland” (NY state to Minnesota) Development of new breeds of cattle that need less room to moo ve  expansion of dairy farms and cattle ranches Before TechnologyAfter Technology

M ANUFACTURING & S ERVICES Manufacturing makes up 20% of the economies of the US & Canada and employs 20% of the workforce Technology has allowed greater quantities of goods with less workers than in the past Exports: Transportation equipment & machinery are large exports for both the US & Canada Other major exports: Aerospace and aircraft equipment (USA) Automobiles (USA mainly, but also Canada) Food processing (USA) Wood-based products (Canada—Quebec in particular)

M ANUFACTURING & S ERVICES 75% of workers are employed in the service (TERTIARY!!) industry! Government workers Education Health care Tourism Real Estate Banking Entertainment Both countries are considered to be post- industrial!

M ANUFACTURING & S ERVICE High-tech industry is VERY important to the economies of the US & Canada Used for computer science & telecommunications USA Leaders California: Silicon Valley is home to 100 of the largest high-tech companies (including Apple & Facebook!) Seattle, Washington : leads the high- tech business in Washington state, which has the sixth-highest concentration of high-tech businesses in the USA Texas: 1,000+ software companies in AUSTIN! (including Dell in Round Rock, TX). Also, some fast-growing technology businesses are found in Dallas

“R ETOOLING ” THE R UST B ELT Rust Belt: older, industrial areas around the Great Lakes whose mills were abandoned when companies moved south towards the Sunbelt Example cities—Buffalo, Pittsburgh. Happened in the last third of the 1900s (around ) Now, these cities are being turned from abandoned mills into tourist areas and public spaces in an effort to bring some new life to the cities

T RANSPORTATION Both US & Canada has had a heavy reliance on automobiles since WWII Challenges: Building & maintenance of highways, roads & bridges  $$$$$$$$$ Increased pollution from the use of cars, especially in urban areas Traffic jams! 

T RANSPORTATION Cities have tried or are making plans to come up with new modes of transportation: Subway systems in NYC, San Francisco, Montreal Seattle, Dallas, Houston use monorail systems Chicago, Washington, DC have commuter trains Atlanta & Chicago also are two of the busiest airports in the world—Atlanta Hartsfield & Chicago O’Hare Also applies to the movement of GOODS! Pipelines--long networks of underground or aboveground pipes—are used to carry ¼ of the region’s freight in oil & gas

C OMMUNICATION Telephone & Internet services are the primary means of communication …I know what your textbook says, but it was written in 2002, before social media like Facebook and Twitter (even MySpace) Computers are available for MOST people in the US & Canada, but there is still concern over the affordability of these services. Canada’s broadcasting & phone services are owned by the government (public service— TAXE$) USA: services are owned by private businesses Government makes sure there is no monopoly, or the total control of industry by ONE person or company

T RADE & I NTERDEPENDENCE : US & C ANADA ARE POWERFUL ! The US is #2 in all world exports, provides 10%+ of all world exports chemicals, agricultural & manufactured goods, and raw materials (metals, iron ore) are exported—also software!

T RADE & I NTERDEPENDENCE the US has a trade DEFICIT because we rely more on imports (what we buy) than exports (what we sell) Why?? US has a large population (#3 in the world!) Growing industries  more energy sources, mainly oil/petroleum from the Middle East! Other countries charge tariffs on imports, which raises the prices of our products and reducing our sales Canada has a trade SURPLUS & earns more from exports than it spends Why?? Canada has a much smaller population because of it’s harsh climate Energy costs are less BECAUSE of this smaller population

NAFTA North American Free Trade Agreement Created in 1994 US, Canada & Mexico can trade goods freely—no restrictions! Is different from the EU because PEOPLE are still not allowed to flow freely you still need a passport to get into Canada & Mexico! One effect: OUTSOURCING! US businesses are building factories in Mexico  cheaper labor, cheaper goods for Americans, saves $$

P EOPLE AND THEIR E NVIRONMENT (7.2)

H UMAN I MPACT The US & Canada has abundant natural resources, but not always used responsibly Clear-cutting: taking out whole forests while harvesting timber endangers wildlife Leaves land subject to flooding & erosion Overfishing Control burns used to clear dry brush before it becomes too dense Too much brush = soil and vegetation dry out

P OLLUTION RATES HIGHER WITH INDUSTRIAL DEVELOPMENT Acid rainfall: pollution (CO2) mixes with rainfall (H2O)  corrosion of stone and metal buildings Weathering or Erosion?? Chemical or Physical? Chemicals are picked up and moved away; mixes with rainfall & acid rain is found in the Adirondack Mountains (NY) and in the eastern provinces of Quebec

P OLLUTION RATES HIGHER WITH INDUSTRIAL DEVELOPMENT Smog Sun’s rays + automobile exhaust gases & industrial emissions = haze How to reduce? Health officials monitor air quality, urge people with respiratory problems to stay indoors Restrictions on driving, other uses of gas-based tools prohibited and/or restricted Fuel pumps also have special nozzles to reduce the amount of vapors leaking from gas pumps New cars that run on electricity, not gas Encourage the use of walking, biking, or using public transportation to get to destinations

W ATER SYSTEMS = POLLUTED AS WELL How? Acid rainfall Introduction of sewage, industrial, and agricultural wastes into the water supplies Effects Can endanger wildlife and humans if water is infected with bacteria Speeds up eutrophication (the process of a lake or body of water becoming rich in dissolved nutrients, encouraging overgrowth of plants and basically making it unusable

G LOBAL W ARMING …? People in the US & Canada worry over the unexplained rise in overall global temperatures Effects: Inuit Communities Thinning sea ice  hunted animals (caribou, polar bears & seals) to move further north  hunting lifestyle challenged Permafrost is beginning to thaw, making the land more unsteady for the foundations of building houses New Orleans Below sea level Fear that the area could be completely submerged underwater because of rising ocean levels & more frequent flooding of the Mississippi River Climate Patterns Warmer, higher seas  more frequent, severe weather events (El Nino, major hurricanes)