Economy Review Answer Key
First Nations
What is a Subsistence Economy? The set of activites practised by a group to meet their basic NEEDS and ensure their survival.
How did aboriginal lifestyle reflect their economy? Algonquians / Inuit -> NOMADIC They followed their game (food) gathered Iroquois -> sedentary They crew crops (agriculture) Subsistence economy: they did what they had to in order to survive!
What is barter? The trade of one product for another. EG: Iroquois would trade surplus corn for caribou meat from the Algonquians.
What is meant by standard of living? The quality of life enjoyed by a person YOUR OPINION! How did the arrival of the Europeans change this for the aboriginal population in NA? THINK OF WHAT THEY BROUGHT: firearms, new foods (cucumbers, apples), disease, warfare, brass pots (other metals), cotton
French Regime
What is MERCANTALISM? A country’s power is measure by how much wealth it has
What was the first natural resource exploited by the French? NATURAL RESOURCE: fish WHY: provided essential animal protein –Whale and seal oils (used in lamps) represented a significant portion of exports for Europe IMPACT: –Land: temporary fishing posts were set up (little effect on organization of territory) –People: some local merchants set up o supply for colonists –Favours development of shipyards
What was the second natural resource exploited by the French? NATURAL RESOURCE: fur WHY: fashion in Europe (high DEMAND) IMPACT: –Land: expand territory –People: monopolies were granted 1663: Royal Government, everyone can participate Coureurs des bois go inland compete vs merchants Voyageurs were granted permits (25 per year) to limit # of men in fur trade and control quality of fur
What does it mean to diversify an economy? Basing your economy on more than one thing. Eg: not only on fur trade, develop new sectors
What was the Triangle of Trade?
How did New France Diversify the Economy? (4 minimum) Fishing Farming (agriculture) Iron (shipyards) Commercial/Craft –CRAFT: wigmakers, gold and silversmiths –COMMERCIAL: sell imported products (p )
British Regime
How does protectionism help the local economy? Favours the purchasing of resources from within the Empire. Protectionism: an economic policy established by a state or gov’t in order to protect the economy of the country or empire from outside competition
How did preferential tarrifs help BNA (QC and ONT) Created a demand for the products produced in British North America. Limited competition with other empires Preferential tarrifs: the imposition of lower customs duties on products imported from the colonies EG: Corn Laws (1815) for grain
What happens to the demand for fur in the early 1800s? The demand diminished (decreased) Higher demand for timber – 1806 – Britain at WAR –Napoleon imposed a continental embargo
Which key product replace3s fur as the main export from BNA in 1800s? TIMBER!!!!! (sawed wood intended for construction)
Timber leads to the creation of a new financial institution. Bank of Montreal 1817 Merchants understood that unifying the capital (money, coins, notes, legal currency) would lead to a better growth of their capital. p.188
Transportation networks change Increased production that resulted from industrialization = need for better transportation = reduce cost of distribution. CANALS: LaChine Canal 1825 (first canal built) –Inland transportation by water Railway Network: Fundamental aspect of industrialization during British Regime –Good distribution even in winter –Cities linked by railways = important trading center
When the British adopted a policy of free trade, who is now a trading partner? NAFTA (1994)– North America Free Trade Agreement US, Canada, Mexico
Reciprocity Treaty 1854 Canada and US – reduction of duties charged on goods exchanged Increased the exchanges between Canada and US
Place the following terms on a timeline with a description of each term (not every term will have a specific date) Term Description …………… …………… subsistence- fish – transportation development- timber – Confederation – barter – fur – wheat - shipbuilding agricultural expansion – demand - triangle of trade - preferential tariffs - mercantilism – National Policy -territorial expansion diversification- whales