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lesson 1

Laura Meagher

on 11 February 2016

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Transcript of Economy

First Occupants
Economy Today
French Regime
British Regime
Contemporary Period
Quebec's Natural Resources (draw these on your map)
Export goods (draw a large arrow leaving Qc)
Main export partners (indicate these as the destination)
Aluminum and alloys
Newsprint paper
Copper and alloys
Via export infrastructure:
United States (72.2%)
United Kingdom (2.6%)
Germany (2.0%)
France (1.9%)
Netherlands (1.8%)
Main import partners
Import goods (draw an arrow pointing to Qc)
United States (31.1%)
China (8.3%)
Algeria (8.1%)
United Kingdom (7.9%)

1. Primary Sector
2. Secondary Sector
The Economy
3. Tertiary Sector
Glue map of Quebec into your copybook
Economic Activities
Native groups practiced different economic activities depending on their location:
Trade Networks
Before the arrival of Europeans, Native groups participated in complex trading systems based on
BARTER (trade of a good for a good)

- Native groups traded products like obsidian, corn, furs, shells, tobacco, dried meats and fish
(Panoramas p.151)

- Barter took place at trading centers, often where two rivers would meet
Example: confluence of Ottawa River and St. Lawrence River
Economic activities affect the organization of the society and territory
Part of Iroquoian language family
Lived in St. Lawrence Valley
Practiced agriculture (the 3 sisters: corn, squash, beans)
Matriarchal society
Part of Algonquian language family
Lived east of St Lawrence Valley
Practiced hunting
Patriarchal society
Early Contact
What economic activity first brought Europeans to North America?
Europeans first came in the early 16th century
Fished along Atlantic shore and in the Gulf of St. Lawrence
Basques (northern Spain)
Normans (France)
First encounters:
Fishers drying cod met Amerindian hunters
Began trading products:
knives, pots, glass, porcelain beads
Fishermen realize that fur is more profitable than fish:
fur in high demand in Europe
felt hats are in fashion
Extraction of natural resources
2.5% of Quebec workers
Transforming raw materials into goods
Manufacturing steel into cars or textiles into clothing
20.4% of workers
The service sector
Real estate
77.1% of Quebec workers
Economy of New France
Economic policy designed to enrich the mother country
more wealth a country has, the more powerful it will be
How do you get more powerful?
Claim colonies to obtain natural resources
Transform natural resources from colonies into manufactured goods and sell them to other countries/colonies
mother country
controls the colony, and uses it for its resources (ex: France)
is a territory under the control of a far-off state (ex: New France)
Colonies supplied the state with specific resources (ex: fur) and were a market for goods made in the mother country
Colonial System
Colonial system: the
mother country
(France) obtained resources from the
(New France)
Economy based on
In New France, the


became the basis of the economy

Triangular trade
(Panos. p. 172) Insert diagram here
The Fur Trade
Fur was the main export of the colony
How the fur trade worked:
(Drawing here)

Consequences of the fur trade on society and territory:
trading posts
were established
of the colony was
the territory expanded
It also led to a
with the 13 colonies over control of fur, wars
Circulation of European products through Native trade networks
Natives begin to harvest more furs
•Economic policy designed to enrich the mother country
•The more wealth a country has the more powerful it will be
•How do you get more powerful?
Claim colonies to obtain their natural resources
Transform raw materials from colonies into manufactured goods
Sell them to other countries/colonies
Agriculture was the
most popular economic activity
in New France
At first, inhabitants practiced
Later, farmers' surpluses also fed cities and contributed to exports

Agriculture-related processing activities:
grinding grain
brewing beer
manufacturing canvas and rigging

Effect on territory:
More land is cultivated, mills and markets established
Economic Diversification
After 1663, intendants try to
diversify the economy.
: promotes cultivation of flax, hemp, raising livestock
: ship-building (Quebec City), ironworks (Mauricie)
BUT these measures are not successful. WHY?
lack of capital
scarcity of specialized labour
not profitable like the fur trade
mother country
does not support diversification in its colonies:
mercantilism is an obstacle to diversification
Craft Activities
Craftspeople started to settle in cities in the 17th century
Wigmakers, goldsmiths, silversmiths
Development of carpentry, masonry, hat-making
Craft activities led to the growth of cities and the presence of workshops and boutiques
Fur Trade
British Economy
After the Conquest,
continues under British rule
Colony's role is to supply raw materials to the mother country
Many French merchants decided to return to France
Fur trade transferred to British companies, controlled by British merchants
Don't copy this: How can a country ensure that its colonies' goods will be bought? (think pair share)
Exs, and come up with a clear definition
British expand the fur trade to the northwest:
Great Lakes Region
Hudson Bay Region

There is competition for control of the fur trade
In BNA, 2 rival companies compete for control
Hudson's Bay Company
Founded in 1670
Radisson and de Groseilliers had explored Hudson Bay for England.
England claimed the land, called it Rupert’s Land, and set up trading posts throughout for trade with the Cree
Competition develops between HBC and the French traders based at Montreal
Established in 1779
Based in Montreal, dominates area around Great Lakes and the West (run by Canadiens and British merchants)
British merchants hire Canadiens to work as voyageurs
Northwest Company
An economic policy established by a state in order to protect the economy of the country or empire from foreign competition
Favours purchasing resources from within the empire
For example, establishing
preferential tariffs
Preferential Tariffs
The imposition of lower
custom duties
on products imported from the colonies
For example, in 1815 the
Corn Laws
preferential tariffs
on the British market to the colonies' grain merchants
Grain imported from the colonies will be _________ expensive than grain imported from other foreign countries
There is a decline in the fur trade by the early 19th century:
Exhaustion of the resource
Trading territories becoming increasingly remote
Operating costs are increasing
Demand for fur in Europe is decreasing
Decline of the Fur Trade
Effects of the decline of the fur trade:
HBC and NWC merge in 1821 to form the HBC we know today
Hudson's Bay takes over from Montreal as the main place of export
(Don't copy this: Go to preferential tariffs)
Timber Trade
In the early 1800s,
becomes the new economic staple as it replaced fur as Canada's main export product
Due to Napoleon’s continental embargo in the early 1800s (see handout), Great Britain turned to Canada to meet its timber needs.

Economic Impact of the Napoleonic Wars on Canada

1. What method did GB use to encourage British merchants to import lumber from BNA?

2. Which sectors of the economy benefited from the lumber industry?

3. What was timber mostly used for in Britain? Why was this important?
1. GB introduces preferential tariffs for BNA timber

2. Both the primary and the secondary sectors of the economy benefited.
Primary sector: cutting down trees (logging camps)
Secondary sector: sawmills, shipyards, construction

3. Timber was used largely for the construction of warships and vessels
Britain's naval fleet was important in order to protect the island nation
The Timber trade

Main trades: lumberjack, log driver, sawyer
Workers were mostly
French Canadians
Irish immigrants
Products: large square pine or oak beams and construction lumber
Most timber products would be sent to Britain from the Port of Quebec in the form of beams or construction lumber
Effects of the timber trade
On the
Creation of
new jobs
(primary and secondary sectors)
Farmers now work on farms in summer and timber camps in winter to increase their income
Timber merchants profit from the industry, leading to a need for banks –
Bank of Montreal
founded in 1817
Aboriginals see their homeland and traditional way of life threatened by forestry

On the

Cleared forests open up new areas for settlement (Mauricie, Saguenay)
Some native homelands are destroyed
The Raftsmen:

The gay raftsmen, oh where are they? (X 2)
To winter camps, they're on their way.

REFRAIN (after each verse)
Bing on the ring! Bang on the rang!
Hear the raftsmen loudly sing!
Bing on the ring! Bing, bang! (Hey)

Across Bytown they went today (X 2)
They've packed their grub, they cannot stay.

Bark canoes they make their way (X 2)
They reach the camp and shout, "Hurray!".

When meal time comes the men all say, (X 2)
"It's pork and beans again today."

There axes sharp with no delay (X 2)
They swing and strike, the tall trees sway.

The logs they trim and drag away, (X 2)
To drive down when the ice gives way.

In spring they draw their winter's pay (X 2)
And go back home on holiday.

To greet them come their ladies gay, (X 2)
Who help them spend their hard-earned pay!
La chasse galerie
Until the beginning of the 19th century, the main agricultural crops were
WHEAT, potatoes and oats
BUT! Wheat production declined in the early 1800s
WHY the decline?
Overpopulation of agricultural land
soil exhaustion

Consequences of the decline:
Emigration to new areas of colonization
emigration to the USA
New transportation infrastructure developed in the first half of the 19th century:



A new economic policy: Free Trade
Free trade
: an economic system in which custom duties on trading
are partially or entirely abolished between participating countries
GB abolishes Corn Laws and other preferential tariffs in the 1840s
British merchants start importing products from other countries
BNA has to find other markets to trade with, diversify its production
Custom Duties
A tax or tariff imposed on goods imported
from a foreign country.
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