1. Our Changing Economy
CHC 2DR
Lesson 36

2. 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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. 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

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

11. 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

12. 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?

13. 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?