Transcript Chapter 2 – Economy and Development

Chapter 2 – Economy and
Development
Review
Mr. Wilson History 404
Make a Pie Chart using table 2.2 on page 48 concerning the
proportion of each sector of activity according to the 2005 Gross
Domestic Product [GDP]
What are the definitions of the
following economic terms:
1.
Gross
–
2.
Net
–
3.
5.
6.
Money after taxes and deductions.
Capital
–
4.
Money before taxes and deductions
Can be money or capital goods that can be used as an investment or for a return
Disparity
–
Refers to an inequality between the distribution of economic assets or
income. Can be applied to Countries as well!
Gross Domestic Product
–
How much a country or a region PRODUCES before any deductions (a
good measure of economic growth.)
Corporation
–
A publicly owned business (i.e.: run by the shareholders!)
What are the definitions of the
following economic terms:
 Unemployment rate
 Percentage of the populations that is unemployed or looking for work.
 Barter
 The exchange of goods and services for goods and services.
 Monopoly
 When a company has exclusive rights or there is not enough
competition in one given area of the economy.
 Currency
 The physical representation of a nation’s wealth.
Describe the three sectors of the
economy
 The Primary Sector:
 natural resources
 The Secondary Sector:
 Processing the resources or
manufacturing goods
 The Tertiary Sector:
 retail, transportation and services
Describe how the first trades started
between the Natives and the Europeans?
 When Jean Cabot first came over to Newfoundland, he
discovered the massive cod fisheries of the Atlantic.
 At the time most of Europe was Catholic and starving!
 Thus, the discovery of these fisheries turned into a very
lucrative fishing industry, where the sailors would dry their
catch on the rock near the shore.
 Invariably they came into contact with some of the natives
there, and some small trading started to happen.
What was the main reason the Europeans were so
interested in the cod fisheries off the coast of
Newfoundland?
 Because of the Catholic holidays, where it was
forbidden to eat meat, fish was in great demand.
 The fish near Newfoundland was therefore
extremely needed to help feed Europe’s population.
Besides cod fishing, what was the other big
economic activity in the Northern Atlantic
 Whaling also became a large industry.
 One whale could provide huge amounts of meat, oil and
bone.
 These were used for lamps, cosmetics and even women’s
clothing!
These early trades were a precursor to what which
economic activity that would come to define
Canada…
 The early trades usually involved fur.
 The Europeans quickly realized that the fur they
were getting from the natives was much more
valuable then the small trinkets they traded for it.
 This would eventually lead to the Fur Trade once
beaver felt top hats would become a massive fashion
crazy in Europe.
Although the fishing continued, as settlements
started to be developed along the St-Laurence
river, what became the dominant economic
activity and why?
 The Fur Trade started to take over around the time of
Champlain and the Company of One Hundred Associates.
 Settlements were set up with the intended goal of trading
furs with the natives and to easily transport them back to
Europe.
 Examples?
This new economic activity represents which
economic sector and why?
 The Fur trade was all Primary.
 Why? Because no manufacturing was done in the
colony whatsoever – they would just bundle up the
furs so they would not get wet and ship them back to
Europe to be felted and manufactured into hats.
What effect did this economic activity have
on the expansion of territory and on the
population?
 The Fur Trade led explorers to push further and
further in-land in search for new territories and new
business.
 The Mississippi, Louisiana, British-Columbia, the
Hudson Bay area…All explored while looking for
furs.
 The population was mostly men, and almost all of
them were connected to the fur trade in some way.
Because the fur trade was doing so well –
what did the King decide to do and what
effect did it have on the business
 The King decided to tax all of the trades based on fur
– up to 25%!!!
 This made it very hard for the French to do business,
and the natives started to sell more of their furs to
the English and the Dutch in order to get more
values for their bundles.
Besides the fur trade, what was the second
biggest economic activity in New France and
why?
 The second biggest economic activity was wheat
farming.
 Why? Because people needed to eat and farming
required a lot of people!
 Farming family were large, or they relied on Les
Engages to help support them.
 Again this is all primary sector stuff.
What was Jean Talon’s plan for the economy
of New France? Was this a good idea or a
bad one?
 Jean Talon wanted to diversify the economy of New
France – in the hopes of making it more independent
and not completely reliant on one industry.
 He brought in new types of grain, diversified animal
farming and encouraged trade with other colonies.
 This was an excellent idea, because as we know, the
fur trade did not last forever.
What were some of the obstacles Jean Talon’s
plan for diversification had to face?
 Lack of specialized labourers.
 New products require higher production costs
(capital!)
 Lack of capital to start new ventures.
 The weakness of the local market (too small).
 Competition from the “Mother Country.”
Place the following on a time-line
between 1608 and 1763...
1. Administration entrusted to trade companies.
2. Fur centered economy.
3. Exclusive wheat production.
4. Exports.
5. Attempts to diversify the economy.
6. Road construction
After the British took over in 1763, what
happened to the Fur Trade and why?
 The Fur Trade came to a virtual halt as the fashion in
Europe changed overnight.
 At the same time, England had a massive navy and
needed wood to support it!
 So all of sudden, men who were involved in the fur
trade started working in the Timber Industry and
farmers would work as lumberjacks during the
winter.
Which industry started to become
more lucrative and why?
Complete the following table
Event:
1763 = The Treaty of Paris
1775-1783 = The America
Revolution
1806 = The Napoleonic Wars
1821 = The Merger of the
Northwest company and the
Hudson’s Bay Company.
Consequence:
New British government! This
had an effect on how business
was done, and at the same time –
the fur trade started to decline.
The loss of territory down south
was big blow to the English,
because most Primary sector
industry rely on territory.
Napoleon sets up his blockade of
Europe – so England starts to get
it’s wood exclusively from
Canada = BIG BUSINESS!
The end of the fur trade, the
companies can no longer rely on
fur to support their businesses
and they have to diversify.
Explain how the timber industry had an
impact on the territory and on Canadian
society.
 The Timber Industry had a huge impact on the
territory of Canada, not just in terms of cutting
trees, but the clearing of the land led to massive
agricultural expansion – not to mention erosion.
 Our country would never look the same!
 In terms of society, timber was big business and
everybody was working! Remember that war is
always good for business…
With the expansion of the Timber industry –
what other industries suddenly became
more important?
 Transportation becomes hugely valuable.
 Before, the French used to rely on the native to bring the furs
to them – now they have to build some kind of
transportation network.
 Road construction becomes extremely important
 Canal building also becomes important
 However, with the invention of the steam engine, all that changed!
Based on Table 2.28 on page 78 draw a diagram
showing the evolution of Quebec’s three sectors
from 1850 to 2000
How do you explain what happens in
the diagram?
 Time and education, coupled with the industrial
revolution and electricity have led fewer and fewer
people having to work in the primary sector.
 After machinery and electricity was introduced to
farming, people started to live in more urbanized
areas (secondary sector).
 Today, manufacturing is still important but less
people intensive – instead the tertiary sector has
taken over.
How was the modernization of agriculture
implemented in the 1930’s?
 After WWII, the countryside was electrified!
 In Quebec, wheat farming was less important
because on the West and many farmers started
to move towards dairy farming instead.
 The number of farms decreased but
productivity continued to rise.
Complete the following table concerning the MAIN
ECONOMIC ACTIVITY(IES) of the time
Regime:
French Regime (15081763)
Fur Trade
Consequence on the
Consequence on
Territory:
Society:
Killing animals –
Lots of money.
extinction.
Lots of jobs (not very
Expansion of territory. specialized work!)
Mostly MEN.
Settlement was
completely dependant
on ONE industry.
Complete the following table concerning the MAIN
ECONOMIC ACTIVITY(IES) of the time
Regime:
Consequence on the
Territory:
British Regime
(1763 – 1867)
Expansion of
territory.
Fur trade
Timber Industry
Destroying
habitats.
Erosion and new
farmland.
Consequence on
Society:
More jobs, more
diversified
economy.
The need for
transportation.
More farmland led
to more farming!
Complete the following table concerning the MAIN
ECONOMIC ACTIVITY(IES) of the time
Regime:
Contemporary
Period (1867 –
Present)
Consequence on the
Territory:
Pollution, problems
with the water!
Unsanitary living
conditions,
population density.
Transportation
Industrialization
Electricity/Urbanizat
ion
Hydro – Habitat
Tertiary Sector
depletion.
Higher standard of
living = more
consumption.
Consequence on
Society:
People moving to the
cities, more disease,
more poverty.
Primary sector
required fewer
workers for the same
production.
Tertiary sector =
more training =
more education!