Interdependence Primary Secondary and Tertiary Industries S Interdependence

Interdependence Primary, Secondary and Tertiary Industries S

Interdependence S The reliance of two or more nations on one another for products or services is called interdependence. S There are three main areas of interdependence in trade: primary industries, secondary industries and tertiary industries.

Primary Industries S Extraction and Initial processing of all raw materials. S There are 5 major primary industries: agriculture, fishing, hunting and trapping, forestry and logging, energy and mining. A 6 th could be added and that is water

Exports S What primary resources does your home country export? Find out and be prepared to share.

Secondary Industries S Made up of primary manufacturing or processing. Secondary manufacturing producing both capital goods (products used by business such as machinery and heavy equipment) and consumer goods (clothing, packaged food and i. Phones. ) Why do we call capital goods capital and why do we call consumer goods consumer?

Foreign Ownership S In Canada we have Branch Plants. Branch plants are foreign owned industry that produces products for consumption in the host country. Kellogg’s has factories in Canada, but their offices are based out of Michigan in the US. What are some advantages to Branch plants?

Disadvantages 1. Business functions: Often subsidiary operations are reduced from the original specifically research and development. 2. Innovation: Little innovation occurs. The purpose is mostly to produce goods. 3. Exports: Goods produced are sold in the host country and exports are rare. 4. Use of Non – Canadian Materials: Materials are often sourced outside of Canada. Therefore primary producers do not benefit.

Labour How is labour affected by branch plants?

Tertiary Industries (Services) S Provide necessary services to other businesses and consumers. Examples include: TEACHING! Banking, Construction, Transportation, Law. What is your favorite retail store? Where do you shop? Why? What makes it unique?

Lululemon S Together we will watch a video about Lululemon (A Canadian Yoga Store that has expanded internationally). How has the stock been performing? What does the founder say makes the brand successful? Is there anything that surprises you or that you learned about the brand?

Foreign Retailers S In your groups list 3 foreign retailers in your home country. Find out where they are from. Do you think having them in your country is a good thing or not? Explain.

John S So back to John. In the video what were examples of: - Primary Industries - Secondary Industries - Tertiary Industries

Interdependence and Trade S Watch the video on Interdependence and Trade posted on our classroom website. Answer the questions provided. Be prepared to discuss them.