Chapter 1: International Interdependence
1.3 CANADA’S ECONOMIC IDENTITY
Pg 17-21
Changes in Canada’s Economic Identity
Canada commonly trades its primary resources to countries that convert them into
finished products then Canada buys them back for its own use. Industries that rely on
using the primary resources tend to be capital intensive (they need a lot of funding for
the equipment), but they are not labour intensive (meaning they do not need many
skilled workers). It is practical for Canada to spend a lot of money on the equipment,
rather than workers, and then send the materials to countries that use cheap, highly
skilled workers to finish the products.
In the past couple decades Canada has seen a shift in their international trade.
Canada’s Exports Since 1971:
Primary Resource-Based
Semi-Manufactured& End- Product
from 43%
to 18%
from 57%
to 82%
This growth in finished product exports proves that Canada is not only strong the in
primary resources area.
In today’s increasingly technological society, advancements are being made in the
equipment used in Canada’s primary resources. As a result, worker wage rates have
increased to attract more knowledgeable workers to the field.
Since knowledge- intensive activities are in such high demand today, Canada’s
research, development, and quality education give Canada a boost in international
leadership.
Primary Industries
Primary Industries (a.k.a extractive industries) take raw materials from nature,
process them slightly, and sell them to other businesses that use them to make other
products or to provide services.
AGRICULTURE
-Crops
-Live stock
-Poultry
-Animal products
-Other agriculture
products
Canada’s Primary Resources
FISHING &
FORESTRY &
TRAPPING
LOGGING
-Groundfish
-Lumber
-Finish
-Pulpwood
-Shellfish
-Firewood
-Wildlife
-Other marine life
ENERGY & MINING
-Non metals
-Metals
-Structure materials
-Fossil fuels
-Hydro-electric power
Manufacturing
Manufacturing industries include both the processing and fabrication sectors.
Grinding wheat into crude flour is a great example of a manufacturing process. A
company refines and enriches the flour fabricating process to consider it as a
manufactured good. A manufactured good does not require any further processing.
PROCESSED
FOOD
BEVERAGES
RUBBER
-Meat
-Canned/
Preserved foods
- Soft drinks
-Beer
-Distilled spirits
-Tires
-Tubes
-Belts
PRINTING&
PUBLISHING
PRIMARY METALS
FABRICATED
METALS
PLASTIC
-Pipes
-Foam
- Film
MACHINERY
LEATHER
- Tanned hinds
-Footwear
-Luggage
-Manufactured
fibre
-Yarn
-Woven cloth
TRANSPORTATION
WOOD
-Veneer
-Plywood
-Cabinets
NON- METALLIC
MINERALS
FURNITURE&
FIXTURES
-Household
furniture
-Metal office
furniture
-Wood pulp
-News print
-Paperboard
PETROLIUM&
COAL
TEXTILES
PAPER
ELECTRICAL&
ELECTRONICS
CHEMICALS
-Business forms
-Plate making
-Book publishing
-Ferro-alloys
-Aluminum
-Boilers & heat
exchangers
-Tanks
-Doors
-agricultural
implements
-A.C. equipment
-Mining
machinery
-Aircraft parts
-Automobiles
-Mobile homes
-Small electrical
appliances
-Major
appliances
-Lighting fixtures
-Clay products
-Cement
-Glass products
-Ashphalt
-Refined gas&
oil
-Grease
-Fertilizer
materials
-Resins
-Paint&
varnishes
*Other manufacturing includes: clocks& watches, jewellery, buttons, etc.
Services
Service industries do not sell tangible items (items a person can touch), although
rental services will allow customers to use tangible items such as DVD’s for a period of
time. Services provide intangibles that people need or want (ex: transportation).
Services are also activities that are often performed by experts who can do what
untrained people cannot do (ex: pilots) One of the fastest growing sectors of the service
industry is in the consulting services, where the client pays for advice.
COMMERCIAL
SERVICES
-Communication
-Construction
-Research&
development
services
TRAVEL
TRANSPORTATION
GOVERNMENT
-Business &
personal travel
- Transportation of
persons& goods (air,
water, and land)
-Diplomatic
-Commercial
-Education
-Healthcare