1. The Economy

2. Economic Activities Postindustrial Economies – The service industry has been the area with the largest economic growth for the United States and Canada 75 percent of the region’s workers are employed in service jobs. Many of these jobs are located in the central business district of urban areas. – Rising postindustrial economies are reflected in the region’s high- tech industry because they are not dependent on location. Instead, they are influenced by personal choices. Manufacturing – Accounts for about 20 percent of both the U.S. and Canadian economies.

3. Advance technology has transformed manufacturing in the region. Factories are able to produce greater quantities with fewer workers. In the late 1900s, companies began moving away from the Manufacturing Belt and heading south. These older industrial areas were left with abandoned factories and rusting steel mills. Many of these old factories have since been remodeled and put to use in new industries. Transportation equipment and machinery make up a significant amount of the regions manufacturing. Food processing and manufacturing wood- based products are important manufacturing activities.

4. Economic Activities Agriculture – Farming in both regions is overwhelmingly commercial, with goods produced for sale. Large commercial corporations account for only 5 percent of farm ownership. – 1 billion acres of land are used for agriculture in the U.S. – Canada has 167 million acres devoted to agriculture. Its land is much less arable land than the United States. – The average size of farms in both countries has increased, but the number of farmers has decreased. Causes: High cost, unpredictable consumer demand, natural disasters and the time and hard work needed.

5. Economic Activities – Key Agricultural Products Cattle ranching- western, southern and Midwestern U.S. and Canada’s Prairie Provinces. Wheat- Canada’s Prairie Provinces and the U.S.’s Great Plains. Corn- the Corn Belt in the U.S. and the provinces of Quebec, Ontario and Manitoba. – Agricultural Technology The development in breeds of cattle, improved food sources and automation has opened up ranching to all areas of the U.S.

6. Transportation and Communication The Automobile The automobile has been the most popular means of transportation since WWII. Creates the need for heavy investment in highways, roads and bridges. The network of U.S. roads is densest along the east and west coasts, and the Mississippi and Ohio River valleys. Canada relies on a smaller network of roads that are located mainly in the southern portion of the country. The burning of gasoline by automobiles has created a problem of air pollution. Finding a more efficient way to use fuel and to find an alternative to using automobiles is a top priority for government agencies.

7. Transportation and Communication Other Means of Transportation – Airports are peoples choice for a means of long-distance travel. – Passengers trains and buses account for a small portion of travel. – The transportation systems of the region also move goods. 35 percent of the regions freight is transported by railroads, while 15 percent is transported by inland waterways. 20 percent of the regions fright is transported by long- haul trucks Airplanes carry only a small portion. – Both countries use the Great Lake- St. Lawrence Seaway System to transport goods. – The Mississippi River is used to transport U.S. products.

8. Transportation and Communication Communication – The development of communication networks is a major reason for the regions success. – Cellular and digital services made communication more mobile. – Using the internet and e-mail make businesses and personal transactions instantaneous. – Thousands of television and radio stations, newspapers and magazines provide news. These are publicly owned in Canada, but privately owned in the U.S. Trade and Interdependence

9. Exports and Imports The United States suffers from a trade deficit that is hundreds of billions of dollars. U.S. spends more on imports than it earns from exports. Because of its large consumer population and growing industry. Canada enjoys a trade surplus, earning more than it spends. Canada’s energy needs are much less because of its smaller population. NAFTA In 1989, Canada and the United States signed the U.S.- Canada Free Trade Agreement (FTA). Removed trade restrictions between the two countries.

10. Trade and Interdependence – The two countries along with Mexico signed another agreement in 1994, the North American Free Trade Agreement (NAFTA). Did the same things as FTA, but also increased economic activity and strengthened their political and economical position in the global economy. – The United States has recently sought lower production and labor costs by outsourcing. NAFTA allows U.S. companies to set up assembly plants in Mexico were costs are lower.

11. Trade and Interdependence United Against Terrorism – After September 11, the United Sates and Canada created the Smart Border action plan to enhance border safety. It monitors the flow of people and goods, securing infrastructure and sharing information. – The Free and Secure Trade (FAST) program establishes complete and reliable records for all cargo. – Intelligence sharing and coordination has increased greatly since the Smart Border program was implemented. Tunnels, bridges and other infrastructures are watched by both countries. X-ray machines are used to screen people and cargo.