1. The second phase of industrialization

2. The various SECTORS of the economy
Primary sector: extraction of natural resources (agriculture, forestry, mining, etc.)
Secondary sector: the transformation of natural resources into manufactured goods/products. (textile, construction, pulp and paper, etc.)
Tertiary sector: transportation and services (education, transportation, sales, etc.)
IMPORTANT DURING THE FIRST AND SECOND PHASES OF INDUSTRIALIZATION
IMPORTANT DURING THE SECOND PHASE OF INDUSTRIALIZATION
VERY IMPORTANT TODAY

3. Timeline of Industrialization

4. A favourable context
Protectionist policies: encourages the development of Canadian industries by imposing customs duties on imported products.
The arrival of new immigrants: a growing population means a growing work-force and a growing market (more people to buy products).

5. A Favourable Context (cont.)
Growing international market: increase in foreign trade, with the U.S.A and the United Kingdom.
Successful farms in the West: wheat farms in the West of the country generated a lot of wealth, and wheat quickly became the most important export.
The First World War: the war industry encouraged economic development (demand for food and military equipment). ($$$)

6. The Second Phase of Industrialization: AN OVERVIEW Read pages 131 to 133 in your textbook and answer the following questions.
Which natural resources were exploited?
Which industrial sectors developed?
How did the territory change?

7. 2nd phase of Industrialization: An Overview
Water, wood, copper, silver, gold, zinc, asbestos
Which natural resources were exploited?
Ore processing, pulp and paper, hydroelectricity and electrometallurgy, electrochemistry
Which industrial sectors developed?
Development of regions (more houses, businesses and infrastructure), more railways were built, building of hydro-electric dams.
How did the territory change?

8. Explain how industrialization transforms the territory.

9. The role of the state: non-intervention
Between 1897 and 1936, the Liberal party of Quebec was in power. They wanted to encourage industrialization and adopted a policy inspired by economic liberalism: the government should not intervene in business (businesses are owned by individuals, not the government).
The government put in place certain policies that would attract foreign and domestic investors.
The advantages:
The provinces profited from the exploitation of natural resources because businesses had to pay royalties to the government (pay money for permission to exploit the resources)
These new businesses created jobs in the regions.

10. 1. Which foreign country invested the most in Canada in 1920. 2
Which foreign country invested the most in Canada in 1920? How did this change by 1930?

11. According to this document, what attracts U.S investors to Canada?

12. Measures of Economic Development
Import and Export
Canada exported many of its natural resources to other countries. (Ex: Quebec supplied pulp and paper to the United States).
In order to encourage economic development, the trade balance (imports – exports) should be positive.
Infrastructures
The railways networks are expanded in the regions where natural resources are exploited.
With the emergence of motorized vehicles (cars) the governments invested in the construction of roads and highways.

13. According to this graph, is the trade balance in Canada positive or negative in 1921?

14. Monopoly Capitalism
Monopoly: an economic system where one company controls the entire market for a certain product(s) (no competition)
In order to maximize profit (capitalism) one company buys other competing companies in order to gain control over the market. This allows them to then freely set the price of products, without having to worry about competition.
A company can also buy-out companies that are associated with the creation of a product. If a company controls every stage of production there is no longer any need for business partners.

15. How does this image represent monopoly capitalism?

16. Does monopoly capitalism continue to exist?

17. 1st Phase of Industrialization 2nd Phase of Industrialization
Comparison:
Characteristics
1st Phase of Industrialization
2nd Phase of Industrialization
Natural Resources Exploited
Important Industrial sectors
Main energy source
Origin of Capital
Main Markets

18. 1st Phase of Industrialization 2nd Phase of Industrialization
Comparison:
Characteristics
1st Phase of Industrialization
2nd Phase of Industrialization
Natural Resources Exploited
Wood, tobacco, leather, milk
Water, wood, copper, silver, gold, zinc, asbestos
Important Industrial sectors
Food, textile, forestry
Ore processing, pulp and paper, hydroelectricity, electrometallurgy and electrochemistry.
Main energy source
Coal/steam
Hydroelectricity
Origin of Capital
Great Britain
The United States
Main Markets
Domestic (Canada)
Foreign and Domestic

19. Identify whether the following images represent the First or Second phase of industrialization.