Interdependence

What is interdependence?

The reliance of two or more nations (or businesses) on each other for products or services.

What are the three main areas of interdependence?

• Primary industries

• Secondary industries

• Tertiary industries

How does everyday life show interdependence?

Many products we use (food, clothing, electronics) are made in different countries and rely on international trade.

What is a primary industry?

The sector of the economy that extracts natural resources from the earth or sea.

What are six major primary industries?

1. Agriculture

2. Fishing, hunting, and trapping

3. Forestry and logging

4. Energy

5. Mining

6. Water (sometimes)

How do primary industries add value?

By extracting and beginning to process natural resources.

What are examples of Canadian primary exports?

Oil and gas, wheat, fish, beef, and metals.

What is a secondary industry?

Industries that create a finished, usable product.

What is primary manufacturing (processing)?

Processing raw materials (e.g., lumber into pulp & paper, iron ore into steel).

What is secondary manufacturing?

roducing capital goods and consumer goods.

What are capital goods?

Goods used by businesses (e.g., machinery, ships).

What are consumer goods?

Goods used by individuals (e.g., clothing, packaged foods).

What is a branch plant?

A factory owned by a company based in another country.

Why is Canada described as having a branch-plant economy?

Foreign companies own many businesses operating in Canada.

What are examples of companies with branch plants in Canada?

Kellogg’s, GM, Ford.

What are two advantages of branch plants?

• Employ Canadian workers

• Pay Canadian taxes

What are disadvantages of branch plants?

• R&D and management in home country

• Little innovation

• Use of non-Canadian materials

• Usually do not export

What is a tertiary industry?

Industries that provide services rather than making products or extracting resources.

What are examples of tertiary industries?

Banking, construction, communications, transportation, retail sales.

Why are Canadian retailers important in interdependence?

They are major importers of goods from foreign manufacturers.