Nature of Canada’s Nature of Canada’s EconomyEconomyCGC 1PCGC 1P

How does the human environment affect and change our natural environment?

Primary Industry

Manufacturing

Location Factors

Before we move on, we first need an understanding of what makes Before we move on, we first need an understanding of what makes up the Canadian Economyup the Canadian Economy

Economic Structure of Economic Structure of CanadaCanada

Economic SystemEconomic System

The organization The organization in which in which productsproducts and and servicesservices are are made and used upmade and used up

ProducersProducers: : people who harvest, manufacture products or provide services.

Consumers:Consumers: people who use products and services.

The economy is made up of two different types of people:

How we categorize our economic industries

Primary Industries

Secondary Industries

Tertiary Industries

Quaternary Industries

-industries that -industries that harvestharvest natural resources natural resources

(natural resources: air, (natural resources: air, soil, water, oil, plants, soil, water, oil, plants, rocks, minerals, rocks, minerals, wildlife) wildlife)

Examples of Industries:Examples of Industries: mining, mining, forestryforestry, oil and , oil and gas, gas, agricultureagriculture, fishing, , fishing, huntinghunting, trapping, trapping

Primary IndustriesPrimary Industries

Provinces of Canada and their Provinces of Canada and their Primary Industries using natural Primary Industries using natural

resourcesresources

LabourLabour - - Lower Lower number of people number of people employed than other employed than other industry levels due to industry levels due to mechanization of the job mechanization of the job (one person per big (one person per big machine)machine)

-SkilledSkilled labour due to the labour due to the specialization of the job specialization of the job (college diploma and (college diploma and apprenticeship)apprenticeship)

Secondary Refining Secondary Refining IndustriesIndustries

IndustriesIndustries: Steel mills, : Steel mills, paperpaper millsmills, textile , textile mills, mills, plasticplastic manufacturersmanufacturers, flour , flour millmill

- process raw materials into industrial products

LabourLabour - Larger number of - Larger number of people people employed than employed than primary industry but still primary industry but still lower than manufacturing lower than manufacturing industry industry -Some Some college skilled college skilled labour (steel milling), labour (steel milling), Often Often industry trained industry trained labour labour

-process -process industrialindustrial products into goodsproducts into goods

IndustriesIndustries: car makers, : car makers, garmentgarment industryindustry, , furniture makers, furniture makers, industrialindustrial bakersbakers

Secondary Manufacturing Industry

LabourLabour -Larger number Larger number of of people in a factory people in a factory

-Often Often industry industry trained labour, low trained labour, low skill labour skill labour

--provide provide servicesservices and and distribution of distribution of finalfinal products to the marketproducts to the market

Industries: Industries: retail sales, retail sales, utilitiesutilities, public , public administration, administration, communicationscommunications, , health care, health care, restaurantsrestaurants, , education education

Tertiary Industry

LabourLabour -Large number Large number of people of people employed in this industry employed in this industry

-Labour skill Labour skill varievaries: s: Low skill laLow skill labour (ex bour (ex cashier), cashier), college trained college trained (ex. chef, (ex. chef, paramedic),paramedic),University trained University trained (ex. (ex. accountant, pharmacist) accountant, pharmacist)

--provides provides intellectualintellectual servicesservices

IndustriesIndustries: : Scientific Scientific research, research, informationinformation technologytechnology, , consultants, consultants,

Quaternary Industry

LabourLabour -Small Small of people of people employed in this industry employed in this industry

-Very highly trained Very highly trained employees (many years of employees (many years of university)university)

Basic and Non-Basic Industries

Basic Industries

• Industries that sell their products outside the community, bringing “new” money into the community

Non-Basic Industries

• Industries that sell their products within the community, not bringing “new” money into the community

Job Description Basic/Non-Basic

Coal miner in northeastern British Columbia

Hairdresser at a shopping mall

Art teacher

Actor at the Stratford Shakespearean Festival

Teller at the local bank

Vice-president of Scotiabank

Professor at Queen’s University

Receptionist at a dentist’s office

Air Canada pilot

School-bus driver

Decide if the description is an example of either a basic or non-basic industry:

Basic

Basic

Non- basic

Non- basic

Non- basicBasic

BasicNon- basic

Basic

Non- basic

Factors that influence the Location of Industry

What is Industry?What is Industry? Industry, refers to types of employment,

organized by sector (type of industry) where people work.

Many types of industry exist in Canada and around the world.- Government (federal, provincial)- Mining, forestry, fishing, - Tourism,- Auto Manufacturing Industry- Transportation Industry

….. Just to name a few……

Determining the proper location for an industry is very important to the success of a company.

If the location, environmental, social or economic conditions are not just right, a company is likely to be unsuccessful.

What things do you feel would be important when deciding to locate a

business?

FACTORS

There are 6 main factors to consider when locating a business/ Industry

Raw Materials Government

IncentivesMarket

TransportationEnergy

Labour ForceTogether, these factors determine where and if a business can succeed to make a profit. If one or more of these conditions are not ideal then the business/industry will suffer

Raw Materials

Are the raw materials you require available?

If the raw materials you need are too far from your business, the cost may be too high to transport them, cutting into your profit.

Locating near your source of raw materials is necessity!

if you make fertilizer, you want to locate you business near a source of potash.

Labour Force:Are there people available and trained to provide labour?

If your product requires manual labour you need to locate your factory in an area populated with people willing and trained to perform the work."Made in China" sound familiar?

CHINA: Huge Labour Force + low wages= $$$ in company pocket

BUT!: This takes jobs away from Canadians

Transportation:Are you close to major transportation networks? Water, Rail, Road?

If you build a product that must be transported, there must be a network in place for you to move those goods easily/ cheaply.

It is cheap to transport goods by container ship. That is why we can have our goods made on the other side of the world and then transported here. If it were not cheap that would not be an option.

Market:How close are you to your market? Customers?

If you locate your business/factory/industry near the people who aregoing to buy your product, you save money on getting it to yourconsumers.

It is usually cheapest to buy local

The further away your food comes from , the more expensiveit is!

Energy:

Does your business require a great deal of electricity? If so, Where can you find the cheapest power?

Most aluminum and copper smelters, pulp and paper mills need a great deal of electricity to run. They locate near cheap sources.

Most smelting and paper operations are located in northern Ontario and Quebec. Why?many hydro-electric dams that offer cheap power.

Government Incentives:

The Ontario Government gives "deals" to many types of companies that offer to bring work to Canadian cities. An example is car makers. Deals include, low taxes or cheap power. Simple done to draw industry to the province or country.

Is anyone offering you a deal if you locate your business in their area?

Generating new business is a big deal for politicians/ the government. When cities or provinces are fighting to draw a particular business into town they offer up deals or incentives.