Chapter 2 – Economy Chapter 2 – Economy and Developmentand Development

Mr Wilson History 404Mr Wilson History 404

A Quick Overview…A Quick Overview…

In your Common-Place In your Common-Place books...books...

What is the issue here?What is the issue here? What are some of the effects of this What are some of the effects of this

trade? (On development, on regions, trade? (On development, on regions, on cultures?)on cultures?)

Do you think this kind of thing Do you think this kind of thing happens a lot between 1happens a lot between 1stst World World countries and 3countries and 3rdrd world countries? world countries?

Economic Vocabulary Economic Vocabulary (write this down!)(write this down!)

GrossGross = Before any deductions = Before any deductions Net Net = After any deductions= After any deductions CapitalCapital = can be money or capital goods = can be money or capital goods

that can be used as an investment or for a that can be used as an investment or for a return.return.

DisparityDisparity = refers to an inequality between = refers to an inequality between the distribution of economic assets or the distribution of economic assets or income. Can be applied to Countries as well!income. Can be applied to Countries as well!

Economic Vocabulary Economic Vocabulary (write this down!)(write this down!)

Gross Domestic Product Gross Domestic Product = how = how much a country or a region much a country or a region PRODUCES before any deductions (a PRODUCES before any deductions (a good measure of economic growth.)good measure of economic growth.)

CorporationCorporation = a publicly owned = a publicly owned business (i.e.: run by the business (i.e.: run by the shareholders!)shareholders!)

Relevant Discussion Relevant Discussion (taking (taking a few notes on this would be a good a few notes on this would be a good idea)idea)

Why are we going to discuss Why are we going to discuss Quebec’s economy?Quebec’s economy?

What kinds of things effect What kinds of things effect QUEBEC’s economic decision-QUEBEC’s economic decision-making?making?

What kinds of things effect YOUR What kinds of things effect YOUR economic decisions as a citizen?economic decisions as a citizen?

TO THE WORKBOOK!TO THE WORKBOOK!(and beyond…)(and beyond…)

The Economic Landscape The Economic Landscape of Quebec:of Quebec:

Quebec’s average GDP is about 30 000$ per Quebec’s average GDP is about 30 000$ per inhabitant.inhabitant.

Which would make Quebec the 21Which would make Quebec the 21stst richest richest economy in the world – if it was a country! (Did economy in the world – if it was a country! (Did I mention your workbook is BIASED?)I mention your workbook is BIASED?)

So what kind of an economy is it? Where does So what kind of an economy is it? Where does the economy focus? What is the Labour force the economy focus? What is the Labour force like? Which issues are a big concern?like? Which issues are a big concern?

Quebec’s Economic ActivitiesQuebec’s Economic Activities

All economic activities fit into All economic activities fit into three sectors:three sectors:

1.1. The PRIMARY SECTORThe PRIMARY SECTOR = natural = natural resources.resources.

2.2. The SECONDARY SECTOR The SECONDARY SECTOR = = Processing the resources or Processing the resources or manufacturing goods.manufacturing goods.

3.3. The TERTIARY SECTOR The TERTIARY SECTOR = retail, = retail, transportation and services.transportation and services.

For example…For example…

The Next step…The Next step…

The last step…The last step…

Economic ActivitiesEconomic Activities

Geographic DistributionGeographic Distribution The territory of Quebec is split into FOUR The territory of Quebec is split into FOUR

economic regions:economic regions:

1.1. The Resource Regions The Resource Regions – Mostly in the – Mostly in the North, collecting resources.North, collecting resources.

2.2. The Central Regions The Central Regions - Mostly - Mostly manufacturing.manufacturing.

3.3. The National Capital Region The National Capital Region – – Quebec city.Quebec city.

4.4. Montreal and Laval Montreal and Laval – highest – highest concentration of the Tertiary Sector.concentration of the Tertiary Sector.

BusinessBusiness Most of Quebec’s economy is fuelled by Most of Quebec’s economy is fuelled by

PRIVATE BUSINESS.PRIVATE BUSINESS. Approx. 75% of the active population works Approx. 75% of the active population works

in the private sector.in the private sector. Although large corporations offer most of the Although large corporations offer most of the

job opportunities (57%), private businesses job opportunities (57%), private businesses tend to keep their money in the Province.tend to keep their money in the Province.

Therefore small/medium sized private Therefore small/medium sized private businesses [SME] make up more of the businesses [SME] make up more of the overall economy.overall economy.

““Most imports are Most imports are from outside the from outside the country…”country…”

- George W. Bush- George W. Bush

ExportsExports Quebec exports over 53% of its products.Quebec exports over 53% of its products. 2/3 of those exports go to foreign countries, 2/3 of those exports go to foreign countries,

the last third goes to the other Provinces.the last third goes to the other Provinces. 30% of Quebec’s economy is based on these 30% of Quebec’s economy is based on these

exports.exports. The majority of these exports are from the The majority of these exports are from the

Secondary SectorSecondary Sector: Metal processing, : Metal processing, transportation equipment, paper, industrial and transportation equipment, paper, industrial and commercial machinery, chemical products (oil!)commercial machinery, chemical products (oil!)

Employment and Employment and UnemploymentUnemployment

In 2008 the unemployment rate was at a 30 In 2008 the unemployment rate was at a 30 year low = 6.7%year low = 6.7%

However, since the economic downturn last However, since the economic downturn last fall, it has been quite high = 7.7%fall, it has been quite high = 7.7%

These kinds of changes over a relatively short These kinds of changes over a relatively short period of time lead to period of time lead to layoffslayoffs and financial and financial uncertaintyuncertainty..

However, this is a Provincial average – there However, this is a Provincial average – there is a lot of is a lot of disparitydisparity between the different between the different areas!areas!

PAGES 52-54PAGES 52-54(GO, MY MINIONS!)(GO, MY MINIONS!)