Economic Activities

EQ: How do the economics of the U.S. and Canada compare and how are they linked?

Measuring an Economy

• Gross Domestic Product (GDP) (UNIT 1 Concept)
• GDP per capita means GDP is divided by the total population, and thereby provides an excellent measure of standard of living within an economy.
• USA- $53,240 (2020 est.)
• Canada- $50,100 (2020 est.)

What do these GDPs tell you about the economy?

Type of Economy

• The US and Canada have a free enterprise economy
• An economic system with few government restrictions on business activities and ownership.
• The goal of the system is for businesses to have more freedom from government intervention.��

What does this type of economic system mean for the distribution of goods and services?

Sectors of the Economy

View the graphs to the left. Write the question and answer on your paper:

• What is the largest sector of the economy for the United States and Canada?
• Give an example of a type of job found in the sector of the economy?
• Does the breakdown of the sectors of the economy show these countries are More Developed (MDC), Newly Industrialized (NIC), or Less Developed (LDC)? ��

Economic Downturn (Housing Bubble) - 2008 �

• An increase of bad home mortgage loans, lead to foreclosures and bank failure
• Stock market became unstable and unemployment rose
• Both Canada and the U.S. economies are part of the global economy, and felt the economic downturn
• Not as severe in Canada because banks had been more conservative in extending credit�

Trade between the U.S. and Canada

• NAFTA- North American Free Trade Agreement
• A treaty between Canada, Mexico, and the U.S.
• Eliminates trade barriers, such as taxes
• USMCA replaced NAFTA in July of 2020
• Some Canadians fear that their economy is becoming too dependent on the U.S.
• The U.S. trades with Canada more than any other country. ��

Two Decades of NAFTA

• Open your textbooks to pages 174-175.
• Copy the diagram explaining the imports and exports of NAFTA on page 43 in your Portfolio.
• At the bottom of page 43 set up a table to compare the pros and cons of NAFTA

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Canada

USA

Mexico

Two Decades of NAFTA

At the bottom of page 41 set up a table to compare the pros and cons of NAFTA

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What do you think? Why was NAFTA replaced with USMCA?

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Process Your Notes

Complete each of the following:

• Underline or Highlight important concepts (Vocabulary, Historical Events, Key Figures, Dates, Organizations…)
• Circle or Star main ideas (important content that will be on assessments)
• Question- work with a peer to create five questions about the content that could be on assessments

Complete one of the following:

• Chunk- modify your notes by summarizing the information for each page
• Add symbols or pictures to enhance your understanding of the content
• Explain how this information can be applied to your own experiences. Make connections to the content

Geography and the Economy

• The US and Canada have geographical regions that create many different jobs.
• Divide Page 44 in half. Write USA on a line on the top half and Canada on a line on the bottom half.
• If you are sitting in an ‘A’ desk you will be analyzing the relationship between geography and economic activities in the US
• If you are sitting in an ‘B’ desk you will be analyzing the relationship between geography and economic activities in Canada
• Use World Geography Book pages 120, 122, and 123

Process it!

At the end of your notes write a thoughtful response to the EQ: How do the economics of the U.S. and Canada compare and how are they linked?