History 404 Name: ________________________________

Economy: Contemporary Period (1867-1920)

Economic Factors Related to Confederation

In 1867, the British colonies in North America decided to join together to form a confederation. They joined together and formed the _____________________________. Reasons for joining together into a single country included:

1) Britain decided to abandon a Protectionist Policy in favour of free trade. The protection policy allowed the colony of Canada to sell its products in Britain at a good rate. Now with free trade, _________________________________________________
_______________________________________________________________________________________________________________________________________________.

2)

____________________________________ ___________________________________________________________________to help each other’s economies so joining together into one country would only strengthen this economic bond.

3) The United States (an independent country) was looking for more land to take over. Creating the country of Canada would allow for ________________________________
_______________________________________________________________________.

The Dominion’s Economic Situation

Within the Dominion of Canada there would be different levels of government and each would be in charge of certain aspects of the economy. These different aspects were divided according to the jurisdiction. Sometimes jurisdictions were shared between different levels of government. This was often the case for such things as the exploitation of natural resources and raw materials.

“Jurisdiction” is: ________________________________________________________________________________________________________________________________________________________________________________________________________________________

Levels of Government

_________________________________ (The government in charge of all of Canada)

-

Run by the Prime Minister

_________________________________ (The government in charge of a province)

-

Run by the Premier

_________________________________ (The government in charge of a city/town)

-

Run by the Mayor

Levels of Government and their Jurisdictions

National Policy

Sir John A. MacDonald, Prime Minister of Canada in 1879 developed a national policy for all of Canada.

The three major objectives he wished to meet with this new policy were:

1) __________________ To protect new Canadian made products in factories by applying a protective tariff. This meant higher custom duties for importing products from other countries if Canada already made that product.

2) __________________________: To encourage more settlement of the land of Canada. People were encouraged to come from other countries and live in Canada and contribute to the labour force.

3)____________________________: To link the provinces and promote trade between each other a railway would facilitate access to other Canadian provinces.

A Protectionist Tariff Policy

-During this period, the Canadian market was flooded by goods from the United States.

-Many Canadian manufacturers were unable to compete with the American market. They exerted pressure on the government to impose customs duties on foreign goods.

- The introduction of these customs duties encouraged Canadians to buy local products. The new regulation also aimed to speed up the development of Canadian industries.

Expanding the Railway Networks

The expansion of the railway network in Canada allowed for two of the policies of MacDonald’s National Policy to be implemented:

1)___________________________________________________

2)___________________________________________________

Increasing immigration and implementing tariffs was helped by the railway expanding in these ways:

- _________________________________________________________________

- Transport raw materials from locations where they were extracted to the industrial centers

- Facilitates new immigrants’ access to region of colonization (where they can settle)

-Encourage the distribution of manufactured goods throughout the country

- Develop promising industrial sectors, such as transport equipment, iron and steel

Second Phase of Industrialization

Canadian industries, experienced a second phase of industrialization at the turn of the 20 th century ______________________________.

–Contributing factors: the protectionist tariff policy ( the National Policy)

Characterized by the rapid expansion of industrial sectors which developed because of new energy sources: ____________________________________________________.

Second Phase of Industrialization: Developmental Factors

Several factors contributed to the development of Canadian and Quebec companies.

1) Their ability to ________________________________________________________

_______________________________________________________________________.

2) To be more competitive, they therefore had to ________________________________

_______________________________ (the amount of money it would cost to produce their product).

To achieve this, businesses decided to set up their factories and production centers close to sources of energy.

3) The development of the railways in the late 19th century (late 1800s) also contributed to limiting production costs, as they facilitated access to resources and accelerated the distribution of manufactured products.

Sectors that Develop during the Second Phase of Industrialization

History 404 Name: ________________________________

1) Hydroelectricity

2) Pulp and Paper: newsprint, cardboard.

3)

Mining: iron, steel, aluminum.

4) Chemicals: dyes, preservatives.

5) Oil: Cars, plastics.

History 404 Name: ________________________________

Foreign Investment

In the early 1900s investors from Great Britain and the United States were recruited by the government of Canada to invest ($$) in the natural resources sector.

The more money that was put in to build factories and exploit resources, the more job opportunities there would be for Canadians. **Look at document 100 on page 201.

WWI

_________________________________, the European powers, including Great Britain, fought each other in a world war.

Canada’s participation in the war effort stimulated the Canadian economy.

Sectors such as mining, iron and steel and clothing developed in this time period. This was due to the fact that Canada was producing goods that would be used ____________
______________________________________________________________________.

(Tanks, ammunition, uniforms, etc were needed by the Canadian soldiers.)

War production led to the modernization of factories.

- Factories had to adapt to growing demands and new equipment available.

Canada’s role in the First World War was closely attached to Great Britain.

When World War I broke out Canada had to go to war because Great Britain went. This was due to the fact that Canada was still a part of the Commonwealth of Britain. Britain was in charge of Canada’s foreign relations. Meaning its relationships with other countries.

Development of the Dairy Industry

In the early 20th century, _______________________________ was still one of the main economic activities in Quebec.

–Farmers used more efficient agricultural tools, which allowed them to increase their production rate and results.

gradually integrated into commercial networks.

– transportation network now linked producers to consumers.

–Farmers in Canada also tried to satisfy the needs of the British and American markets for, among other things, dairy products and slaughter animals.

Dairy production was the agricultural sector that experienced the greatest progress after 1880. In addition to milk, farmers produced butter, cheese and cream.

– In 1890, more than 80% of cheese production was intended for export, whereas butter was mainly sold in the local market.