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Natural Resources & Canada’s Economy

You will work with a partner to complete this activity

Canada's economy depends on its abundance of natural resources. In this activity we will:

  • Investigate the interaction Canadians with their environment.
  • Identify the difference between renewable and non-renewable resources
  • Learn about the types of industries and how the impact of changes in these will affect you.

Natural Resources

A natural resource is any substance made by nature which is used for human benefit. List five examples of a natural resource:

"Resources are not, they become."
Erich Zimmermann (1888-1961), economist at the University of North Carolina and later the University of Texas

What does Zimmerman mean by, “Resources are not, they become”?

______

List one material that forms naturally but is not used for human benefit.

______

Have you ever stopped to think about the products we have around us and where they all came from? For example, one of the most common fast foods is the hamburger. Have you ever wondered from where your hamburger comes?

Renewable and Non-renewable Resources

Resources can be classified as renewable or non-renewable. Renewable resources are resources which can be replaced within one lifetime providing it is managed properly. For example, trees can be cut down, and then new trees planted to grow again so the resource is regenerated for future use. Conversely, minerals that are extracted from the ground do not regenerate and therefore they are classified as non-renewable resources. It is our responsibility as global citizens to use these resources in a manner which ensures that they remain for future generations to use as well.

Types of Industry

There are many different types of economic activities that are common in various parts of Canada. The bringing together of natural systems and human systems, in part, makes up our economic system. This combination of natural resources and the work of Canadian people is why our country is rich in many ways.

The jobs of Canadians can be categorized into one of the four following industries: primary, secondary, tertiary or quaternary. All activity that takes place in our economy can be placed into one of these four industry types. Study the diagram on the next page so that you understand the four different types of industries; as well become familiar with specific examples of each.

Activity

  1. Complete the table below. Remember that some industries may not fit exactly into one definition, or they may fit into more than one sector.

Industry / Industry type / Products/services
Natural resource (if applicable)
Aerospace / . / .
Agriculture / . / .
Automotive / . / .
Banking / . / .
Insurance / . / .
Clothing Factory / . / .
Computer Programmer / . / .
Forestry / . / .
Teaching / . / .
Cereal Factory / . / .
Minerals Processing / . / .
Retail / . / .
e-commerce / . / .
Truck Driver / . / .

Primary Industries

Canadians have a great wealth of natural resources at our disposal. We value our natural resources for their ecological value. For example forests play an enormous role for the many species that inhabit the earth, for their appeal value as they provide beauty, and finally for economic value because it brings Canadians monetary value which helps improve our quality of life.

Primary industries extract natural resources from the surface of the earth, as well as below and above the surface of the earth

Activity

Complete the table below

Location of a natural resource / Two Examples
A natural resource extracted from the surface of the earth / 1.
2.
A natural resource extracted for below the earth’s surface / 1.
2.
A natural resource extracted from above the earth’s surface / 1.
2.

Exports

Much of Canada’s natural resources (and manufactured products) are exported to other countries. Below is a table showing Canada’s top 10 exports in 2013.

Activity

Complete the last column of the table.

Product / $ earned from exported product / % of total value of all exports / Industry Type
Mineral fuels including oil / $119,735,428,000 / 26.1%
Vehicles excluding trains and streetcars / $59,311,332,000 / 13%
Machinery / $31,159,852,000 / 6.8%
Pearls, gems, precious metals and coins / $23,163,095,000 / 5.1%
Electronic equipment / $14,119,823,000 / 3.1%
Plastics and plastic articles / $12,586,302,000 / 2.7%
Aircraft, spacecraft and equipment / $10,466,591,000 / 2.3%
Paper / $8,597,848,000 / 1.9%
Aluminum / $8,529,558,000 / 1.9%
Ores, slag and ash / $8,460,935,000 / 1.8%

Source: World Factbook

Which type of industry earns the largest amount of money from exports?

______

Where do we export our natural resources? The best way to discover this is by making a map which shows where Canada exports a specific natural resource. Follow the instructions below to make a map showing where Canada exports lumber

  1. Click on the Trade Map link in your Moodle
  1. Click on the button
  1. Click on the Exports button
  1. Click on the first drop down window and type the word wood
  1. From the options shown click on
  1. In the Country drop down window type Canada, and then select Canada.
  1. Click on the button
  1. Click on the and change to Canadian dollars
  1. Click on the tab. Be patient while the map loads
  1. Tick the box
  1. Change the colour to red
  1. To save the map click on the save button
  1. Save the map to your home drive.

The map you made shows where Canada exports this type of wood product

You will notice that the thickness of each arrow is different. Why are the arrows different thicknesses?

______

Industry’s value to Canada’s economy

So far we have investigated the value of selling natural resources (and manufactured products) to other countries (i.e. exports). We can also analyze each type of industry’s value to Canada’s overall economy. In the table below identify the industry type for each industry.

Number of people employed in Canada by industry (in thousands) 2013
Industry / Type / # Employed
Goods-producing sector / 3,883.40
Agriculture / 314.6
Forestry, fishing, mining, quarrying, oil and gas1 / 367.4
Utilities / 143.5
Construction / 1,323.70
Manufacturing / 1,734.20
Services-producing sector / 13,847.70
Trade / 2,705.20
Transportation and warehousing / 863.2
Finance, insurance, real estate and leasing / 1,122.30
Professional, scientific and technical services / 1,347.70
Business, building and other support services2 / 713.9
Educational services / 1,289.00
Health care and social assistance / 2,176.50
Information, culture and recreation / 782.8
Accommodation and food services / 1,131.80
Other services / 769.5
Public administration / 945.8

Source: Statistics Canada

Which type of industry employs the most people in Canada? ______

Which type of industry employs the least number of people in Canada? ______

We can also determine which type of industry generates the most amount of money. Gross domestic product (GDP) is the value of all goods and services produced in a year. In 2013 Canada’s industries generated $1,742,404,000. Let’s find out how many dollars each industry type generated.

Total Canadian dollars generated (GDP) between August 2013 & August 2014
Industry Type: P = primary, S = secondary, T = Tertiary, Q = Quaternary
Industry Category / type / Total GDP(in millions)
Agriculture, forestry, fishing and hunting / P / 24,732
Mining, quarrying, and oil and gas extraction / P / 134,627
Utilities / T / 38,778
Construction / S / 114,762
Manufacturing / S / 173,689
Wholesale trade / T / 90,703
Retail trade / T / 89,993
Transportation and warehousing / T / 69,381
Information and cultural industries / T / 52,942
Finance and insurance / T / 108,975
Real estate, and rental and leasing / T / 207,687
Professional, scientific and technical services / Q / 85,745
Management of companies and enterprises / T / 12,195
Administrative and support, waste management and remediation services / T / 41,312
Educational services / T / 85,029
Health care and social assistance / T / 110,725
Arts, entertainment and recreation / T / 11,455
Accommodation and food services / T / 33,345
Public administration / T / 110,566
Industrial production / S / 352,398
Non-durable manufacturing industries / S / 73,029
Durable manufacturing industries / S / 100,834
Information and communication technologies industries / Q / 71,596
Energy sector / T / 158,004
Public sector / T / 306,386

Source: Statistics Canada

Activity

Analyze the Total Canadian dollars generated (GDP) between August 2013 & August 2014 table and complete the following table:

Industry type

/

Total dollar amount generated

Primary

Secondary

Tertiary

Quaternary

To what extent is there a relationship between the number of people employed in each type of industry and the amount of money they generate?

______