Download Economy Review

Economy Review
Answer Key
First Nations
What is a Subsistence Economy?
• The set of activites practised by a group to
meet their basic NEEDS and ensure their
survival.
How did aboriginal lifestyle reflect
their economy?
Algonquians / Inuit -> NOMADIC
• They followed their game (food)
• gathered
Iroquois -> sedentary
• They crew crops (agriculture)
Subsistence economy: they did what they
had to in order to survive!
What is barter?
• The trade of one product for another.
• EG: Iroquois would trade surplus corn for
caribou meat from the Algonquians.
What is meant by standard of
living?
• The quality of life enjoyed by a person
• YOUR OPINION! How did the arrival of
the Europeans change this for the
aboriginal population in NA?
• THINK OF WHAT THEY BROUGHT:
firearms, new foods (cucumbers, apples),
disease, warfare, brass pots (other
metals), cotton
French Regime
What is MERCANTALISM?
• A country’s power is measure by how
much wealth it has
What was the first natural resource
exploited by the French?
• NATURAL RESOURCE: fish
• WHY: provided essential animal protein
– Whale and seal oils (used in lamps) represented a
significant portion of exports for Europe
• IMPACT:
– Land: temporary fishing posts were set up (little effect
on organization of territory)
– People: some local merchants set up o supply for
colonists
– Favours development of shipyards
What was the second natural
resource exploited by the French?
• NATURAL RESOURCE: fur
• WHY: fashion in Europe (high DEMAND)
• IMPACT:
– Land: expand territory
– People: monopolies were granted
• 1663: Royal Government, everyone can participate
• Coureurs des bois go inland compete vs merchants
• Voyageurs were granted permits (25 per year) to
limit # of men in fur trade and control quality of fur
What does it mean to diversify an
economy?
• Basing your economy on more than one
thing.
• Eg: not only on fur trade, develop new
sectors
What was the Triangle of Trade?
How did New France Diversify the
Economy? (4 minimum)
•
•
•
•
Fishing
Farming (agriculture)
Iron (shipyards)
Commercial/Craft
– CRAFT: wigmakers, gold and silversmiths
– COMMERCIAL: sell imported products
(p.168-173)
British Regime
How does protectionism help the
local economy?
• Favours the purchasing of resources from
within the Empire.
• Protectionism: an economic policy
established by a state or gov’t in order to
protect the economy of the country or
empire from outside competition
How did preferential tarrifs help
BNA (QC and ONT)
• Created a demand for the products
produced in British North America. Limited
competition with other empires
• Preferential tarrifs: the imposition of lower
customs duties on products imported from
the colonies
• EG: Corn Laws (1815) for grain
What happens to the demand for
fur in the early 1800s?
• The demand diminished (decreased)
• Higher demand for timber – 1806 – Britain
at WAR
– Napoleon imposed a continental embargo
Which key product replace3s fur
as the main export from BNA in
1800s?
• TIMBER!!!!! (sawed wood intended for
construction)
Timber leads to the creation of a
new financial institution.
• Bank of Montreal 1817
• Merchants understood that unifying the
capital (money, coins, notes, legal
currency) would lead to a better growth of
their capital.
p.188
Transportation networks change
• Increased production that resulted from
industrialization = need for better transportation
= reduce cost of distribution.
• CANALS:
LaChine Canal 1825 (first canal built)
– Inland transportation by water
• Railway Network:
Fundamental aspect of industrialization during British
Regime
– Good distribution even in winter
– Cities linked by railways = important trading center
When the British adopted a policy
of free trade, who is now a trading
partner?
• NAFTA (1994)– North America Free Trade
Agreement
• US, Canada, Mexico
Reciprocity Treaty 1854
• Canada and US – reduction of duties
charged on goods exchanged
• Increased the exchanges between
Canada and US
Place the following terms on a
timeline with a description of each
term (not every term will have a
Term
specific
date)
Description
……………
……………
subsistence - fish – transportation developmenttimber – Confederation – barter – fur – wheat shipbuilding
agricultural expansion – 1663 - demand
- triangle of trade - preferential tariffs - mercantilism
– National Policy - territorial expansion
diversification- whales