Economic Activities for U.S. & CanadaWorld GeographyMr. Paul Farmer

Economic Systems

•Free-market economy▫Freedom to own, operate, & profit from

own businesses. ▫Laws protect private property rights,

employment opportunities, & health/safety of workers.

▫Canada: govt. owns & administers many services such as broadcasting & healthcare.

▫U.S.: more private and non-govt. corporations

Agriculture

•Subsistence vs. Commercial▫Most of the world has subsistence farming

within their countries.▫In the U.S. & Canada it is largely commercial.▫Large corps. Make up 5% of farm ownership.▫Most farms are still family owned & operated.▫U.S. devote 1 bil acres of land to agriculture,

Canada devotes 167 mil acres.▫Only 2% of Americans & 4%of Canadians

work in agriculture. U.S. & Canada are the world’s leading

producers for beef, dairy, corn, wheat, & grains.

Industry• Cottage vs. Commercial• Cottage Industries are businesses that employ

workers in their homes.▫For example: traditional crafts, shoe making,

jewelry, woodcarvings, weaving textiles, pottery.• Commercial Industry is organized as a business.

▫Manufacturing Makes up 20% of the regions economy & workforce. Manufacturing of auto, aerospace, aircraft. Food-processing

▫Service Makes up 75% of the regions workers. Service jobs include government, education, health

care, tourism, entertainment, banking, real estate, etc.

Trade• NAFTA

▫ Promotes free trade within North America, Canada, U.S., & Mexico

• Globalization▫ Increasing economic interdependence throughout the

globe.▫ Backbone is trade.

• Outsourcing is turning over of production to a 3rd party.▫ Example: Many large companies now outsource jobs

such as call center services, e-mail services, & payroll.

▫ Example: China is a major recipient of industrial work. India ranks 2nd.

▫ When outsourced work is located outside of a country it is often called offshore.