Lesson 17 — Activity 1: Industry in Canada and the United States
Completion requirements
Lesson 17 — Activity 1:
Industry in Canada and the United States
Warm Up
The economies of Canada and the United States are similar because they are both developed countries and are each other's largest trading partner. However, there are similarities and differences between the two. In this activity, you will compare the economies of Canada and the United States.
@istock
Canada and the
United States share a continent, a border, many cultural experiences,
and very high standards of living. Our historical experiences are
different, but our countries have been connected on many occasions. No
two other trading partners in the world are even close in numbers to
Canada and the US.
Canada and the United States share a continent, a border, many cultural experiences, and very high standards of living. Our historical experiences are different, but our countries have been connected on many occasions. No two other trading partners in the world are even close in numbers to Canada and the US.
Like Canada, the United States has a mixed economy that combines private (businesses) and public (government) enterprises. When comparing Canada and the US, there are, however, several similarities and differences that are evident in our economies.
Both countries are rich in agricultural land and natural resources, but what occurs with both of these industries is quite different. One reason for the differences is population. Canada has a small population of about 35 million people, while the United States has a population of about 319 million. So, how does this affect trade?
Consider what
would happen if both nations were to grow the same amount of wheat,
produce the same amount of beef, or mine the same amount of iron ore.
The United States would need to use more of its production to meet its
own needs than Canada would. Canada would have ample for its own needs,
leaving the excess to be traded. The United States would exhaust its
supplies of natural resources sooner than Canada would.
@istockIn fact,
Canada has a lot left over to trade with other nations. It is because
our two economies are so intertwined and access to each other's markets
is relatively easy that our two nations are the largest trading partners
in the world.
Consider what would happen if both nations were to grow the same amount of wheat, produce the same amount of beef, or mine the same amount of iron ore. The United States would need to use more of its production to meet its own needs than Canada would. Canada would have ample for its own needs, leaving the excess to be traded. The United States would exhaust its supplies of natural resources sooner than Canada would.
@istock
In fact, Canada has a lot left over to trade with other nations. It is because our two economies are so intertwined and access to each other's markets is relatively easy that our two nations are the largest trading partners in the world.
@usplash
Until World
War I, Canada's economy was based largely on agriculture and natural
resources such as forestry and mining. Manufacturing industries were in
their early stages of development. By that time, however, the United
States was already one of the major industrial nations in the world. It
had already used much of its vast supplies of natural resources.
World War I boosted Canada's manufacturing industries to meet the needs of the military. By the time World War II began, Canada had its own industrial heartland in southern Ontario and Quebec. Many of Canada's manufacturing industries were actually owned by or were branches of American companies.
Although Canada has a well-established manufacturing sector, very little of what we manufacture is exported to the United States. Most of Canada's exports to the US are vast amounts of lumber, minerals, and oil. Another interesting factor is that much of the manufacturing in the US is dependent on electricity generated in Canada.
@creativecommons
pipeline
Although the United States is a major industrial nation, much of its success is the result of what is supplied by Canada. Water, electricity, and oil are three of the most important resources to the American industrial network.
Canada has
vast supplies of fresh water, and oil from Canada is considered by
American companies to be "friendly" oil. This is because we are a stable
nation and friendly to the US, unlike many of the nations from whom
they buy oil. Some people maintain that, in the future, water will
become the new "oil." Although Canada has vast supplies, as our
population and industrial development grow, we place higher demands on
this precious resource. These same increases are occurring in the US.
Water shortages are a definite concern for the future.
Canada has vast supplies of fresh water, and oil from Canada is considered by American companies to be "friendly" oil. This is because we are a stable nation and friendly to the US, unlike many of the nations from whom they buy oil. Some people maintain that, in the future, water will become the new "oil." Although Canada has vast supplies, as our population and industrial development grow, we place higher demands on this precious resource. These same increases are occurring in the US. Water shortages are a definite concern for the future.
Self-check!
Try This!
Try the question below on your own first, and then click on the tab to check your answer! You can look back in the lesson to find the answer.
Why does Canada have a lot of resources left over to trade with other countries, including the United States?