Chapter 25: Manufacturing Chapter 26: Providing Services

Seven Location factors of Manufacturing: 1.Availability of Raw Materials: a reliable source of raw material in close proximity McCain Foods – frozen French Fries – located in potato-growing area.

2. Location of Markets: the majority of its customers are nearby. IE to Minimize delivery costs Not always most important factor, for McCain raw material availability is more important.

3. Availability of Fresh Water & Power: manufacturing requires a great amount of power for the factory to run and in companies like steel also need fresh water for cooling Seagram’s – located in Gimli, MB for the fresh water to produce Crown Royal – still operates there today.

4. Labour Supply: abundance of labour (people) at low-cost wages. In Canada tend to locate where advanced skills exist, close to post- secondary institutions.

5. Transportation: fast and efficient method of having raw materials and final products shipped. Via planes, trains or trucks.

6. Political Factors: Decisions gov’t makes to affect the business climate to attract and retain business.  IE expanding the Kenaston Blvd to allow smooth traffic flow for the new Ikea.

7. Circumstance: the potential that comes out of creating a business. McCain foods began as a small company, who would have thought frozen fries would be so popular? It was the vision of McCain that created the fry empire.

Canada’s Auto Industry  Pre NAFTA, Canada had many branch plants (smaller versions of the auto plants established in the US ie GM plant, Ford plant in Canada, est as part of the Auto Pact (agreement which stated a % of all cars sold in Canada must be made in Canada) & also to avoid tariffs) which created many high-paying jobs in Southern Ontario.  After NAFTA, many branch plants reduced manufacturing since couldn’t compete with low labour costs in Mexico where new plants were created.

 ATI Technologies (read together page )  Answer Question 3 & 4

Chapter 26: Providing Services  Services are a part of the tertiary industries. They support workers in the primary and secondary industries. More than 75% of all jobs in Canada are in this industry.

 Trade – selling of goods. Divided into 2 categories:  Wholesale – selling goods & services to businesses or stores, not to the public.  Retail – selling of products and services direct to the public in stores, vending machines, over the phone, internet, etc.

 R&D (research and development) – when companies/ government invest time and money into developing new technologies, goods, etc. to remain competitive in the market.  Entrepreneur – people who start their own businesses.  Page 390 Question #6