1. UNIT 5 ECONOMIC ISSUES IN CANADIAN GEOGRAPHY 5.1 – 1 ECONOMICS

2. Economics – the study of how we use our limited resources to meet our relatively unlimited needs and wants. Natural resources – anything found in nature that can be used by people. What are some examples of natural resources? What can they be used for?

3. As we get and use resources we contribute to industry and the economy. Industry – the particular types of labour that are done in exchange for pay. Economy – a system in which a country produces and distributes goods and services to create wealth.

4. Which industries are shown below?

5. There are 4 different types of industry. A. Primary industry – economic activity that extracts or harvests natural resources from the environment. Example: fishing / farming / forestry / mining

6. B. Secondary activities – economic activity that uses unprocessed raw material to manufacture consumer products. Example: paper mill / soft drink plant / fish plant / nickel smelter

7. C. Tertiary activities - involves providing services to people. Example: grocery store / hospital / trucking company / dry-cleaners

8. D. Quaternary activities – economic activity that involves the provision of services related to the creation of knowledge, ideas, research and development and technology. Example: computer technology design / research company

10. Needs – things you have to have in order to survive. Wants – things you would like to have.

11. SUPPLY, DEMAND, AND PRICE Supply – how much of a good or service is offered for sale. Demand – how much of a good or service is wanted for sale.

12. PRODUCTEVENT 1. wheatA drought destroys much of the crop. 2. cigarsA study says smoking cigars results in lots of wrinkles. 3. yo-yo’sA rock star says he loves playing with a yo-yo. 4. gasolineSmall cars start out-selling large cars. 5. applesA new pesticide kills caterpillars that eat apples. 6. Canadian carsCanada places a tax on Japanese cars coming into Canada. 7. hospital bedsScientists discover a cure for cancer. 8. cementA huge earthquake hits Toronto. 9. video rentalsThe price to see a movie in a theatre increases. 10.butterA disease kills a lot of dairy cows. 11.Burger King whoppersMcDonalds increases the price of Big Macs. 12.hot dog bunsThe price of flour is lowered. 13.taxi serviceThe local bus service goes out of business. 14.candlesA big winter storm is forecast. 15.gasolineTwo large supertankers collide and sink.

13. Trade helps Canada get things that we cannot provide ourselves. Importing – when goods and services are brought into a country. What kind of things are exported into Canada?

14. What countries do we import from?

15. Economic diversification – having different types of economic activities in an area.

16. IndustryNumberPer-Cent Agriculture1,8200.7 Fishing8,7753.6 Logging2,4301.0 Mining2,8001.1 Petroleum7750.3 Fish Products9,6603.9 Pulp and Paper2,4501.0 Other Manufacturing9,9754.1 Construction17,2157.0 Transportation9,9504.0 Communications4,2301.7 Wholesale Trade8,1103.3 Retail Trade31,76012.9 Finance and Insurance4,2501.7 Business Services7,3203.0 Government Services21,4858.7 Educational Services20,7158.4 Health and Social Services26,46510.8 Accommodation Services3,6001.5 Food and Beverage Services10,3454.2 Personal and Household Services6,4552.6 Total Labour Force246,065100.0 Labour Force 15 Years and Over by Selected Industry Divisions and Major Groups, 1996. NL and Labrador.

17. Why is economic diversification important? 1.People can find work in different economic areas. 2.Economy is not dependent on one industry. 3.If demand for one industry declines the economy will not be devastated. 4.More money and jobs are produced by having secondary and tertiary industries.

18. RESOURCES - AN ECONOMIC PERSPECTIVE

19. Extracting natural resources brings money into the economy. How? 1.Provides jobs for more than a million Canadians in resource-related industries. 2. Exports of raw materials brings money into the country. 3.Exporting companies pay royalties and income taxes to the government. Exports – the sale of products or services to another country. Royalties – a fee paid to the government for the use of resources.

20. The economic value of our natural resources can be measured in 3 main ways. Gross Domestic Product (GDP) - the value of all the goods and services produced in one country in one year. Complete Figure 6.5 Activity Sheet.

21. Most natural resource development is controlled by large international companies. Transnational corporations – a large company that has business operations in several countries. -Based in Brazil -126,000 direct employees -50,000 more in ongoing projects -Operates in 38 countries -World leader in iron ore production -A leader in nickel production -Operates Voisey’s Bay mine -Operates Long Harbour smelter -Says it is committed to sustainable growth, respect for environment and social responsibility

22. To develop a resource sustainably, 3 things are necessary: 1.Maintain a strong economy 2.Consider the needs of people in local communities 3.Protect the natural environment Can there be problems with trying to do all three?

23. Large resource projects require environmental assessments – detailed study to determine the potential environmental impact of a proposed development. Case study - page 246. Why is it being developed? What are the impacts on the environment?