1 Chapter 18 Working Canada

2 Introduction In 2001, over 15.8 million people were employed in different jobs in Canada. Canada has an abundant amount of natural resources, which have to be gathered and harvested – therefore we have a broad manufacturing base. In 2001, over 15.8 million people were employed in different jobs in Canada. Canada has an abundant amount of natural resources, which have to be gathered and harvested – therefore we have a broad manufacturing base.

3 Four Basic Types of Industry 1. Primary Industry – provide raw materials to be used by other industries. Includes farming, fishing, forestry and mining.

4 Four Basic Types of Industry 2. Secondary Industry – manufacturing the raw materials from primary industry.

5 Four Basic Types of Industry 3. Tertiary – Provides services instead of products. Includes banking, transportation and retails (shopping) services.

6 Four Basic Types of Industry 4. Quaternary – Involved in processing of information (research and computer technology).

7 Manufacturing involves TWO Processes 1. Primary manufacturing – produces usable products from raw materials. Examples: takes wood and makes into pulp and paper.

8 Manufacturing involves TWO Processes 2. Secondary manufacturing – uses the products from primary manufacturing to make other products. Examples: paper is turned into newspapers and books.

9 Look at chart on page 370 Figure 18.3 Read section about the steel industry page 372 – 373. Look at chart on page 370 Figure 18.3 Read section about the steel industry page 372 – 373.

10 Primary Industry Steel manufacturing: Steel is one of Canada’s most important manufacturing industries.

11 Primary Industry The THREE largest steel manufacturing plants are: 1. Stelco 2. Dofasco 3. Algoma The THREE largest steel manufacturing plants are: 1. Stelco 2. Dofasco 3. Algoma Algoma Steel

12 Negative impacts of steel manufacturing includes: Large amounts of gases such as nitrogen oxide and sulphur dioxide emitted into the atmosphere These gases mix with water vapour which causes acid precipitation Large amounts of gases such as nitrogen oxide and sulphur dioxide emitted into the atmosphere These gases mix with water vapour which causes acid precipitation

13 This precipitation increases the acid level in lakes – endangering aquatic life It also contributes to the erosion of many buildings in towns and cities This precipitation increases the acid level in lakes – endangering aquatic life It also contributes to the erosion of many buildings in towns and cities

14 New technology to help protect the environment: Companies have switched to energy sources with lower carbon levels Companies have invested money into advanced scrubbers, filtering systems and other devices Companies have switched to energy sources with lower carbon levels Companies have invested money into advanced scrubbers, filtering systems and other devices

15 Read case study on Stelco Plant page 374 – 376 Answer # 10a and Jot note 7 steps in steel making (page 373) Read case study on Stelco Plant page 374 – 376 Answer # 10a and Jot note 7 steps in steel making (page 373)

16 Secondary Manufacturing One of the most important uses of steel is to make cars In 1994 there were 16.5 million vehicles in Canada One of the most important uses of steel is to make cars In 1994 there were 16.5 million vehicles in Canada

17 Secondary Manufacturing In 1994, 1.25 million cars were sold Automobile industry is one of the biggest employers in Canada 130,000 are directly employed by “the big three” – Ford, General Motors, and Daimler Chrysler Another 300,000 people depend indirectly on the auto industry for their jobs In 1994, 1.25 million cars were sold Automobile industry is one of the biggest employers in Canada 130,000 are directly employed by “the big three” – Ford, General Motors, and Daimler Chrysler Another 300,000 people depend indirectly on the auto industry for their jobs

18 Read Case Study Page 376 General Motors Read Case Study Page 376 General Motors

19 Important points from the case study Mass production – large scale manufacturing of a product at a faster rate and at a lower cost See chart page 378 Just in time delivery and assembly system – the ordering and receiving of parts, as they are needed Points of use delivery – the practice of having parts delivered directly to the site where they are needed rather than being stored in a warehouse Mass production – large scale manufacturing of a product at a faster rate and at a lower cost See chart page 378 Just in time delivery and assembly system – the ordering and receiving of parts, as they are needed Points of use delivery – the practice of having parts delivered directly to the site where they are needed rather than being stored in a warehouse

20 Tertiary Industry Most people are employed in Canada work in the tertiary industry Read Retailing Case Study page 381 Most people are employed in Canada work in the tertiary industry Read Retailing Case Study page 381

21 Tertiary Industry In 1994, 2.5 million people worked full time in the retail (sell products or services) business Hundreds of thousands more work part time In 1994, 2.5 million people worked full time in the retail (sell products or services) business Hundreds of thousands more work part time

22 Tertiary Industry Retail sector is a great indicator of how our economy is doing. If times are good people spend more money on items such as cars. If times are bad people stop spending and save instead. When it happens, manufactures slow down or stop producing cars (or other times). In Canada, most people’s money is spent on buying food and clothing Retail sector is a great indicator of how our economy is doing. If times are good people spend more money on items such as cars. If times are bad people stop spending and save instead. When it happens, manufactures slow down or stop producing cars (or other times). In Canada, most people’s money is spent on buying food and clothing

23 Quaternary Industry A rapidly growing industry that has provided and will continue to provide some of the greatest employment opportunities in the future Research and Development – called R and D IT – Information Technology A rapidly growing industry that has provided and will continue to provide some of the greatest employment opportunities in the future Research and Development – called R and D IT – Information Technology

24 Quaternary Industry People who work in this industry look for ways to improve existing industries and to create new ones Governments, universities and industry invest large amounts of money to this industry People who work in this industry look for ways to improve existing industries and to create new ones Governments, universities and industry invest large amounts of money to this industry

25 Quaternary Industry In 1994, Canada’s major telephone companies committed to spending 9 billion dollars (called the Beacon Initiative) to upgrade national phone lines so people could have access to more information. With this access people could do things such as: pay bills, renew drivers licenses and shop online. In 1994, Canada’s major telephone companies committed to spending 9 billion dollars (called the Beacon Initiative) to upgrade national phone lines so people could have access to more information. With this access people could do things such as: pay bills, renew drivers licenses and shop online.

26 Read case study: Financial institutions page 384

27 Canada’s level of Industrialization Life expectancy – people live longer in countries with higher standards of living (better health care, etc) Energy consumption – indicates level of wealth and industrialization Percentage of food consumed – this indicates the ability to feed the population Life expectancy – people live longer in countries with higher standards of living (better health care, etc) Energy consumption – indicates level of wealth and industrialization Percentage of food consumed – this indicates the ability to feed the population

28 Canada’s level of Industrialization Road density – roads are busy in industrialized countries because people can afford to buy and operate cars Televisions – prosperous populations can afford to buy TVs Road density – roads are busy in industrialized countries because people can afford to buy and operate cars Televisions – prosperous populations can afford to buy TVs

29 Canada’s level of Industrialization Literacy Rates – countries that are well off have many schools and universities and can afford to educate the population Infant mortality – affluent countries can afford efficient health and child care programs Literacy Rates – countries that are well off have many schools and universities and can afford to educate the population Infant mortality – affluent countries can afford efficient health and child care programs

30 Location factors in Industry Profit The amount of money remaining once all bills and costs have been paid The money left over is the profit Profit The amount of money remaining once all bills and costs have been paid The money left over is the profit

31 Location factors in Industry Primary location factors: 1. Availability of materials 2. A supply of skilled workers 3. A source of power (electricity) 4. Access to transportation and roads 5. An accessible road Primary location factors: 1. Availability of materials 2. A supply of skilled workers 3. A source of power (electricity) 4. Access to transportation and roads 5. An accessible road

32 Location factors in Industry Other location factors: 1.Government assistance such as grants, interest free loans, etc. 2.Cost of land 3.Quality of life and living conditions e.g. Recreational facilities, housing developments, entertainment, etc. 4.Complementary business – forcing consumers to do comparison shopping 5.Tradition Other location factors: 1.Government assistance such as grants, interest free loans, etc. 2.Cost of land 3.Quality of life and living conditions e.g. Recreational facilities, housing developments, entertainment, etc. 4.Complementary business – forcing consumers to do comparison shopping 5.Tradition

33 Footloose Industries A company free to locate anywhere without being restricted by specific location factors They do not need to be near large markets or have access to vast amounts of energy A company free to locate anywhere without being restricted by specific location factors They do not need to be near large markets or have access to vast amounts of energy

34 Footloose Industries The raw materials and finished products are so small and of such high value that transportation costs are of little value Examples include computer software companies and jewelery manufactures The raw materials and finished products are so small and of such high value that transportation costs are of little value Examples include computer software companies and jewelery manufactures

35 Manufacturing Distribution across Canada Manufacturing Index: Indicates the distribution of manufacturing across the country Determined by dividing the percentage of manufacturing value by the percentage of population % of manufacturing ÷ % of population Manufacturing Index: Indicates the distribution of manufacturing across the country Determined by dividing the percentage of manufacturing value by the percentage of population % of manufacturing ÷ % of population

36 Destination of Manufactured Goods Goods that are manufactured within a province may be sold within the province or outside of the province (exported) Exported goods may be sold to other provinces or to other countries Goods that are manufactured within a province may be sold within the province or outside of the province (exported) Exported goods may be sold to other provinces or to other countries

37 When products are sold outside the province (exported), there are many benefits: Provinces receive revenue (money) from the products sold Revenue helps maintain economic prosperity (good economic times) Money helps pay wages and keep jobs secure People spend their money in other areas, e.g. restaurants, clothing stores, etc. and this creates spin-off benefits When products are sold outside the province (exported), there are many benefits: Provinces receive revenue (money) from the products sold Revenue helps maintain economic prosperity (good economic times) Money helps pay wages and keep jobs secure People spend their money in other areas, e.g. restaurants, clothing stores, etc. and this creates spin-off benefits

38 When a province buys products from another province or country (imports) there are some disadvantages: If a country buys more products from another place than it sells to other places, they loose money. More money leaves the province to pay for the imported goods. This is called a Trade Deficit. This means there is less money available for the province to spend on their people such as education, recreation facilities, etc. When a province buys products from another province or country (imports) there are some disadvantages: If a country buys more products from another place than it sells to other places, they loose money. More money leaves the province to pay for the imported goods. This is called a Trade Deficit. This means there is less money available for the province to spend on their people such as education, recreation facilities, etc.

39 Regional Economic Differences Regional economic differences imply the difference between provinces in their employment level, and their wages (e.g. minimum wages, their prosperity)

40 Regional Economic Differences Reasons for regional economic differences: 1. Climate: Dictates the agriculture in the region, e.g. soil type 2. Distribution of natural resource: Some provinces have more natural resources such as the metallic minerals in British Columbia, which can be sold and used in manufacturing Reasons for regional economic differences: 1. Climate: Dictates the agriculture in the region, e.g. soil type 2. Distribution of natural resource: Some provinces have more natural resources such as the metallic minerals in British Columbia, which can be sold and used in manufacturing

41 Regional Economic Differences 3. Distance from manufacturing base: Customers on provinces far away from southern Ontario and Quebec may have to pay more for produces because of the transportation costs 4. Population concentration: When population concentration in specific areas, more services are available to these people then those in less populated regions 3. Distance from manufacturing base: Customers on provinces far away from southern Ontario and Quebec may have to pay more for produces because of the transportation costs 4. Population concentration: When population concentration in specific areas, more services are available to these people then those in less populated regions

42 Vicious Circles Vicious Circle – The cycle of poverty created through the migration of skilled workers from a region and thereby discouraging new investments from other provinces and countries

43 Slow economic growth Low wages, and high unemployment Hard to attract highly trained people Can be paid higher wages elsewhere Companies are less likely to move to A province with less people and therefore Less skilled people Less people means less Tax money for government And therefore lack funding For education and other social services

44 Equalization Payments The federal government helps all provincial governments pay for their social services Less prosperous provinces receive a greater amount of money towards these costs These funds are called equalized payments This system helps ensure all regions receive adequate social services The federal government helps all provincial governments pay for their social services Less prosperous provinces receive a greater amount of money towards these costs These funds are called equalized payments This system helps ensure all regions receive adequate social services

45 Vicious Circle of Economic Growth Slow economic growth. High unemployment rates. Low wages. Difficult to attract well-trained people. Many skilled workers more elsewhere Companies seeking skilled workers do not move here. Fewer people mean lower tax revenue. Cannot build new schools, universities, etc.