US & Canada

1. US & Canada

2. Free Market Economy • Free Market: allows people the freedom to own, operate, and profit from their own business • Pros: • Businesses can hire employees & pay them • Laws protect private property rights, employment opportunities & the health and safety of workers • USA & Canada are both post-industrial societies, which places an emphasis on service & high tech businesses rather than industry & manufacturing • DTM: Stage 4 • Overall trend: agriculture  industry  services

3. United States vs. Canada • USA • Mostly, the government does not interfere • Private organizations handle services • Broadcasting regulated by the FCC (Federal Communications Commission) but companies like ABC, CBS are privately owned • People choose health care plans---but are now required to have it • Canada • SOME government interference! • Government owns and administers more services than the USA • Health care is publicly funded, not privately • CBC: Canadian Broadcasting Corporation—owned by the government

4. Use of agriculture • Overall trend: Focus on businesses & services! • Still, use of agriculture is seen in both countries • Characteristics: • Commercial Farming, but usually with family-owned businesses • Use of co-ops • Largely used as cropland & for livestock to graze • Canada has less arable (fertile) land to use for farming than the USA, but both countries still dedicate many acres for farming

5. Why are the number of farmers decreasing??? • High cost of farming • Have to use expensive machinery, fertilizers, and chemical pesticides • Unpredictable consumer demand • We don’t know what people want, and our ENTIRE economy depends on supply & demand. • If people don’t want a product, farmers could lose money • Risk of natural disasters • Time-consuming • VERY hard, physical work

6. Key Agricultural Products • The US & Canada lead in the production of… • Beef • Eggs • Milk • Corn • Wheat • All of these products are shipped within the country and around the world!

7. The Wheat Belt • Wheat Belt = prairie provinces of Canada & Great Plains of the USA • Type of wheat grown depends on climate • Northern plains: shorter growing season & cooler climate  spring wheat (planted in the spring, harvested in the fall) • Southern areas: winter wheat (early summer harvest)

8. Technology Helps break geographic barriers!  Before Technology After Technology • Cattle ranching was restricted to wide-open spaces • Dairy farms were mainly in “America’s Dairyland” (NY state to Minnesota) • Development of new breeds of cattle that need less room to moove •  expansion of dairy farms and cattle ranches

9. Manufacturing & Services • Manufacturing makes up 20% of the economies of the US & Canada and employs 20% of the workforce • Technology has allowed greater quantities of goods with less workers than in the past • Exports: • Transportation equipment & machinery are large exports for both the US & Canada • Other major exports: • Aerospace and aircraft equipment (USA) • Automobiles (USA mainly, but also Canada) • Food processing (USA) • Wood-based products (Canada—Quebec in particular)

10. Manufacturing & Services • 75% of workers are employed in the service (TERTIARY!!) industry! • Government workers • Education  • Health care • Tourism • Real Estate • Banking • Entertainment • Both countries are considered to be post-industrial!

11. Manufacturing & Service • High-tech industry is VERY important to the economies of the US & Canada • Used for computer science & telecommunications • USA Leaders • California: Silicon Valley is home to 100 of the largest high-tech companies (including Apple & Facebook!) • Seattle, Washington: leads the high-tech business in Washington state, which has the sixth-highest concentration of high-tech businesses in the USA • Texas: 1,000+ software companies in AUSTIN! (including Dell in Round Rock, TX). Also, some fast-growing technology businesses are found in Dallas

12. “Reetooling” the Rust Belt • Rust Belt: older, industrial areas around the Great Lakes whose mills were abandoned when companies moved south towards the Sunbelt • Example cities—Buffalo, Pittsburgh. • Happened in the last third of the 1900s (around 1969-1999) • Now, these cities are being turned from abandoned mills into tourist areas and public spaces in an effort to bring some new life to the cities

14. Transportation • Both US & Canada has had a heavy reliance on automobiles since WWII • Challenges: • Building & maintenance of highways, roads & bridges  $$$$$$$$$ • Increased pollution from the use of cars, especially in urban areas • Traffic jams! 

15. Transportation • Cities have tried or are making plans to come up with new modes of transportation: • Subway systems in NYC, San Francisco, Montreal • Seattle, Dallas, Houston use monorail systems • Chicago, Washington, DC have commuter trains • Atlanta & Chicago also are two of the busiest airports in the world—Atlanta Hartsfield & Chicago O’Hare • Also applies to the movement of GOODS! • Pipelines--long networks of underground or aboveground pipes—are used to carry ¼ of the region’s freight in oil & gas

16. Communication • Telephone & Internet services are the primary means of communication • …I know what your textbook says, but it was written in 2002, before social media like Facebook and Twitter (even MySpace)  • Computers are available for MOST people in the US & Canada, but there is still concern over the affordability of these services. • Canada’s broadcasting & phone services are owned by the government (public service—TAXE$) • USA: services are owned by private businesses • Government makes sure there is no monopoly, or the total control of industry by ONE person or company

17. Trade & Interdependence: US & Canada are powerful!  • The US is #2 in all world exports, provides 10%+ of all world exports • chemicals, agricultural & manufactured goods, and raw materials (metals, iron ore) are exported—also software!

18. Trade & Interdependence • the US has a trade DEFICIT because we rely more on imports (what we buy) than exports (what we sell) • Why?? • US has a large population (#3 in the world!) • Growing industries  more energy sources, mainly oil/petroleum from the Middle East! • Other countries charge tariffs on imports, which raises the prices of our products and reducing our sales • Canada has a trade SURPLUS & earns more from exports than it spends • Why?? • Canada has a much smaller population because of it’s harsh climate • Energy costs are less BECAUSE of this smaller population

19. NAFTA • North American Free Trade Agreement • Created in 1994 • US, Canada & Mexico can trade goods freely—no restrictions! • Is different from the EU because PEOPLE are still not allowed to flow freely • you still need a passport to get into Canada & Mexico! • One effect: OUTSOURCING! • US businesses are building factories in Mexico cheaper labor, cheaper goods for Americans, saves $$