US CANADA FREE MARKET ECONOMY Free Market allows

US & CANADA

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

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

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

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

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!

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)

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

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)

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!

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 hightech 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

“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 1900 s (around 19691999) 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

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!

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

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 My. Space) � 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

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!

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

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 $$