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Agenda – February 12, 2008 Time Activity • 3:30 Agenda • Take-up In-Class Assignment - last day • New In-class Assignment • Web posting of notes for last week’s DVD – Part I • 3:40 Lecture: Chapter 5 – “Ontario - Part I” • 4:30 DVD: “Water: Under Fire” – Part II • 5:00 Break • 5:15 Lecture: Chapter 5 – “Ontario - Part II” In-class Assignment 1. A) What three physiographic regions are found in Ontario? B) What are the three Climatic Regions? 2. A) Which area of Ontario receives the greatest total snowfall? B) Why? In-class Assignment 3. A) What are the two Environmental Challenges suggest by Bone? B) What is the third suggested by Dr. Bolger? Ontario • Ontario‟s superlatives • Canada‟s most populous Province (12,160,282) • Canada‟s second-largest Province (over 1,000,000 sq. km) • Canada‟s leading economic region • Courchene (economist) - may become the new “heartland” of North America • Four resources - agriculture; forests; minerals and hydroelectricity- developed the economy • Now sustained by manufacturing and service industries Ontario – Two distinct regions • 800 000 vs 11 000 000 – Two distinct economies – Is the heart of Canada‟s economy – The most politically influential Province – The “Province of Opportunity”** (S. Ont.) – Industrial and population heartland vs an old resource hinterland with a stalled economic and population growth Figure 5.1 Ontario, 2001 Ontario‟s - Centralist Perspective • Political and economic dominance • Seen by other areas as favoured by Ottawa • Ontario - “shouldered the burden of Confederation” - major contributor to the equalization payments Figure 5.2 Central Canada Ontario – Physical Geography • Larger than most countries (+1 million sq. km.) • Three physiographic regions (Hudson Bay Lowlands, Canadian Shield & Great Lakes-St. Lawrence Lowlands) • Three climatic regions (Arctic, Sub-Arctic, & Great Lakes-St. Lawrence) • Central to Canada • Proximity to U.S. industrial heartland Southern Ontario – Physical Geography • Includes the most southerly land in Canada (Point Pelee is south of 42 degrees north latitude) • Has a moderate continental climate, influenced by its proximity to the Great Lakes (short, cold winters; long, hot and humid summers) • Annual precipitation of around 1000mm – Sometimes a lack of summer precipitation in the southwestern peninsula – Winter snowfalls can be significant in the lee of the Great Lakes S. Ont. - Physical Geography • Has the longest frost-free period in eastern Canada • Underlain by slightly tilted sedimentary rocks, with good to excellent podzolic soils • Little relief topography • Mixed forest vegetation • Coastal areas are subject to pronounced fluctuations in levels of the Great Lakes Northern Ontario • Ontario‟s north makes up 87% of the Province‟s territory, but is home to only about 8% of its population • Two physiographic regions - Canadian Shield & Hudson Bay Lowlands • Higher latitudes = longer, colder winters • 46 - 57 degrees North • The region serves as a resource frontier (hinterland), with mining, forestry, and tourism dominating economic activities • Public sector employment is also significant • The region is highly dependent upon external markets and transportation infrastructure • „large‟ urban centres are widely scattered, with smaller single-industry towns between • The regional economy is stagnant; population is aging and declining Environmental Challenges • Two major concerns: – air pollution • Golden Horseshoe - smog - health hazard • OMA - $1billion per year in medical bills – water pollution • Walkerton, May 2000 • Great Lakes - asset and problem - shared with U.S. • Industrial and urban pollution • Initial efforts to clean-up lakes began to show results by 1980‟s - but funding was cut Environmental Challenges • Great Lakes - current threats – Growing levels of phosphorous - creation of a “dead zones” - only toxic organisms survive – Exotic species - sea lampreys, Asian carp, and zebra muscles - overtaking natural species - changing ecosystem Environmental Challenges • I would suggest that there is a third major environmental issue facing Ontario! – Waste Disposal • Toronto garbage • Gets all the press • However, it is an issue all along the Great Lakes St. Lawrence Lowlands • Continues to grow with growth (increased populations = increased housing = increased waste) Ontario Facts • 41% of Canada‟s GNP • Annual output: +$300 billion • Average Personal Income – $35,185 (Male $42,719 & Female $26,894) (Canada: A- $31,757 (M - $38,347 & F - $24,390) • 38% of Canadian population • Largest population of six regions Trade • Well positioned - domestically and internationally • Raw materials and manufactured goods • Free trade enhanced market access and share in US and North American economy • 1980 Ontario‟s trade with the rest of Canada and with the U.S.A. was about equal • 1998 trade with U.S.A. = 2.5 X‟s the rest of Canada Trade • 2001 - Automobiles and Auto parts - $93 billion • 90% from assembly and parts plants in Ontario • Represents a demand for steel, rubber, plastics, aluminium and glass products • A slow down in the auto industry also has impact on all other components • Canada-U.S. Auto-Pact designed to integrate Canada‟s auto industry into the N.A. market • Ontario accounts for 16% of auto production in North America New World Economic Order • Two main events in the 1980‟s: 1. Liberalization of World Trade – General Agreement on Tariffs and Trade - (GATT) - most countries agreed to reduce barriers to international trade (import quotas and health regulations) 2. Free Trade Agreement (FTA) – Between Canada and U.S. – Replaced in 1994 by N.A. Free Trade Agreement (NAFTA) - included Mexico New World Economic Order • Canadian manufacturer‟s expanded operations in an effort to reduce the per unit cost and thus be more competitive • Faced competition from Mexico - lower labour costs and lower environmental restrictions • All is not roses! New World Economic Order • A reminder: - increased trade with U.S. makes us more dependent on U.S. - three consequences: 1. Rise and fall of U.A. economy effects our economy more directly 2. No unlimited access - U.S. can still limit Canadian products (e.g. lumber, beef & grain) 3. Our long-term economic fortunes closely tied to U.S. more than ever before Industrial Structure - Geographic Pattern • Economies have an industrial structure based on its economic activities • Divided into three categories: 1. Primary 2. Secondary 3. Tertiary Table 4.15 P. 197 Industrial Structure - Geographic Pattern • The Tertiary / Service sector now represents 75% of industrial activity by value and employment • Tertiary sector divided: – Tertiary (service functions - selling of goods and professional services) – Quaternary (decision-making and innovation functions) Table 5.1 – P. 243 Industrial Structure - Geographic Pattern • Distinctive Geographic Pattern: – Primary activities mainly in N. Ont. (forestry and mining with initial processing done here to reduce shipping costs to the market) – Secondary & Tertiary concentrated in S. Ont. • Global competition has effected manufacturing in Ontario as it tries to compete with the lower labour costs - this has resulted in company closures in S. Ontario. – Wallacebury - Sydenham Glass – Toronto - Lennox – Cambridge - Nike – Hamilton - Camco – Hamilton - Stelco Southern Ontario Agriculture: • Southern Ontario - main primary industry takes advantage of the region‟s two main environmental attributes: its fertile soils and its longer growing season = $ 7 Billion a year. • Most crops produced are for consumption within the region but there is easy access to the nearby U.S. states • The dominant crops (hay-pasture, corn, and feed grains) are intended to meet demands of the livestock industry (dairy, poultry and meat) • The rural landscape is dominated by livestock barns, silos, farmhouses, and rectangular farm fields of mixed crops Southern Ontario • Specialized crops - soybeans, tobacco, sugar beets, fruits, grapes and vegetables • Border delays after 9/11 have an impact of the quality of the goods getting to the U.S. markets • Southern Ontario‟s rural areas are settled at a significantly higher density than those of the Interior Plains • Average farm size 92ha (compared to 519ha in Saskatchewan) • Three highly-specialized zones all south of 43 degrees North Latitude and thus the most southerly areas in Canada Agriculture 1. Essex-Kent Vegetable Area • Formerly know as the „corn belt‟ • Currently Canada‟s biggest producer of soy beans • Corn, wheat, and soybeans dominate production • Vegetables and fruits are important „high value‟ alternative crops • Home to about ¼ of all vegetable processing • Leamington has the highest concentration of greenhouses in Canada • Tobacco was formerly of importance; vineyards are of growing importance • Windsor, Chatham and Leamington are the main service centres in the region Agriculture 2. Norfolk Tobacco Belt • Has sandy (deltaic and other lacustrine) soils • Has poor soil fertility relative to other areas • Farm failure and abandonment were common in the 19th Century • In the 1920s, demand for tobacco stimulated agricultural production • Farm prosperity has declined with the demand for tobacco • Five crops currently dominate: corn, soy beans, wheat, hay, and oats • No major service centre exists in the region; higher-order goods and services are obtained in London and Brantford Agriculture 3. Niagara Fruit Belt • Fruit and vineyard production are concentrated on the Lake Ontario plain, north of the Niagara Escarpment • Grapes, cherries, peaches, plums, and pears dominate production in the north • The upland south of the escarpment is dominated by a hay- pasture-dairy economy • Soils vary: lacustrine soils dominate in the north, glacially deposited soils in the south • Lake Ontario moderates the climate of the area, particularly on the plain • Agricultural land in the region is under considerable population pressure Manufacturing • Southern Ontario‟s dominance of manufacturing in Canada is the result of a number of favourable conditions and policy developments: • An advantaged location – proximity to Great Lakes shipping, a resource hinterland, and the large American market • Well-developed land transportation routes resulting (in part) from the wheat economy • The Reciprocity Treaty, the National Policy, and the Auto Pact • American ownership of industry (within the context of trade restrictions) Key Topic: The Automobile Industry The Auto Pact • 1965 - Successful production-sharing agreement between Can. & U.S. • Ended in 2001 (See Vignette 5>5 - p. 251) • Served three objectives: 1. Secured guarantees to keep Can. Plants open 2. Increased Can. Plants - economies of scales - specialization on type of car to N. American Market. 3. Reduced Can. Car prices Growth of the Auto Industry • Drives Ontario economy • 1:7 jobs in auto industry • High wages - semi-skilled workers - puts money into broader economy • ¼ of Can. Merchandise exports • $ 97 billion in 2002 Growth of the Auto Industry • Two problems: 1. Abundance of auto production and drop in sales leads to closure of less productive plants 2. Increase in Canadian Dollar increases the price of exports and makes us less competitive Two operations: 1. Auto and Truck assembly 2. Production of Auto Parts Growth of the Auto Industry • Just-in-time Principle – Reduces inventories, warehouse space and labour costs – Delicate - easily disrupted and then effects assembly plants • Outsourcing - subcontracting the manufacturing of auto parts • Crests and Troughs in the industry Growth of the Auto Industry • Located in S. Ontario • Transportation linkages • Most cars & trucks sold in U.S. (85% in 2002) Figure 5.3 Automobile-assembly centres in Ontario Growth of the Auto Industry • 2002: – 65% of N. American production by “Big Three” – General Motors, Daimler-Chrysler & Ford (1992 - 90%) • Competition - Japanese & Korean plants now in North America (including S. Ontario) • Ontario attractive to Japanese: – Highly motivate work force – Canadian Dollar* – Medical insurance packages *Recent increase in Loonie = challenges to market Table 5.2 - p. 255 • Automobile-Assembly Plants in Southern Ontario, 2002 The Future • Liberalization of trade & globalization of auto industry - highly competitive N. American market • Signs of slow down - spring of 2000 • “Big Three” - decreasing production • Honda and Toyota - increasing The Future • Canadian dollar continuing to rise • Closures locally - Ford & Chrysler • Planned expansion or improvements being put on hold. • Uncertain future Northern Ontario • Population located along the two transportation routes: – CP railroad and Trans-Canada Highway – CN railroad and northern highway Figure 5.2 Central Canada Northern Ontario: - old resource hinterland • Sluggish economy • Declining population • High unemployment Demographics: – Aging population – Net out-migration (youth) – Few immigrants Northern Ontario: - old resource hinterland • Three major economic activities: 1. Mining 2. Forestry 3. Tourism Linked to external markets Less than 10% of Ontario‟s exports Few major hydro-electric developments - more gentle slope of landscape Mining Industry • There is a direct spatial relationship between mining and the presence of certain kinds of rock in the Canadian Shield – Shield rocks are not equally mineralized – Much of the shield is composed mainly of granite and gneiss – neither of which typically have highly concentrated minerals – Most economically viable mineral deposits are found in areas of „greenstone‟ – The distribution of mining is continually changing, in order to take advantage of new and/or cheaper sources of ore – The „core‟ of mining activity began along the Ontario-Quebec boundary – After the 1950s, mining began to spread east and west, and eventually to portions of the interior shield A Boom and Bust Industry • The boom and bust nature of the mining industry is associated with two main factors: 1. Commodity prices • Prices are subject to changes in the economy • If the economy in general is doing well, demand for metals increases, and prices rise as well • Economic slowdowns bring the prices of metals down, sometimes below the cost of production • Competition from cheaper sources can impact upon the economic viability of particular mines • War can impact upon the price of metals 2. The discovery of mineral deposits can initiate boom and bust cycles (e.g. gold „rushes‟) Mining Industry • Annual production of $5 billion • Minerals are non-renewable • Mining communities have short lifespan • Examples - Cobalt, Elliot Lake Forest Industry • $15 billion in products annually • 60% exported to U.S. • Soft-wood lumber - U.S. 27% duty Two forest regions: 1. Barrens region - Hudson Bay Lowlands 2. Boreal region - Canadian Shield Figure 5.4 US lumber lobby wins again Forest Industry • 50 communities depend on forest industries • Mills produce pulp and paper, lumber, fence posts, and plywood • 25 % of Canadian production • Ontario - leading exporter of newsprint and pulpwood to U.S. (most U.S. owned) • Transportation - roads & transports to access and deliver wood; railways and transports for shipping secondary products to markets • Advanced technology has changed the industry: – Logging now year round – Piggy-back trucks haul logs – Trees harvested before reaching maturity – Mechanical tree harvesters – Lower labour & tendency to clear-cut Forest Industry Facing challenges: • Balance between harvesting and regeneration – Government issues “forest leases” and insists on companies replanting through management agreements - time will tell how successful this is • Changing nature of Boreal Forest – coniferous to broad leaf (spruce, pine and fir replaced by poplar and birch - loss of original species – Harvesting replacing forest fires as change agent • Aging of Pulp & Paper Plants – Old plants = old technology = toxic waste – Need to update - fear new, larger production will close plants in single industry towns Urban Geography • Most highly urbanized province • 85% of population urbanized • 10/25 of Canada‟s largest cities in Ontario • Growth areas: – Oshawa; Toronto; Ottawa & Kitchener Table 5.3 – P. 262 Golden Horseshoe • Around the western end of L. Ontario (Niagara Falls to Oshawa) • Outstanding economic performance • Most densely populated area of Canada • ¼ of Can. Pop. - 12+ towns and cities • Hamilton - steel & Oshawa - # 1 in auto manufacturing Figure 5.5 Major urban centres in Central Canada Toronto • Largest city in Can. - 5+ million (2002) • Financial capital of Can. - home of main offices of banks and investment firms (national & international) and the TSE • Growth = immigrants - ½ million (1996-2001) - visible minorities = (2001) 37 % of pop. • Geographic expansion required to accommodate growth (lower land costs) led to creation of “GTA” - super city (1998) Toronto • Cultural and entertainment centre • Strong tourism industry (impact of SARS) • Problems: – Waste management – Traffic & commuters – Demands on transportation – Considering toll routes (like 407) or multi-person vehicle lanes Table 5.4 – P. 266 Ottawa Valley • Ottawa-Gatineau (Hull) = 1+ pop. - 4th largest metropolitan area in Can. • National Capital Area - both provinces - both official languages used • Growth - “in-immigration” (from within Canada) as well as foreign countries • 18% pop. Immigrant = 14% of pop. Visible minorities Table 5.5 – P. 268 Ottawa Valley • Federal government & business community (and resulting goods & services demands) = employment • Greater Ottawa - Ontario‟s 3rd largest urban cluster • As Capital - focus of national & international affairs • Industrial leader in “high tech” - “Silicon Valley North” • Fluctuations - recent rise & fall of this industry has result in foreign take-overs Southwestern Ontario • Cambridge to Windsor - 1 million pop. • London: – unofficial capital of area – Provides administrative, commercial and cultural services to area – Home of insurance companies – Manufacturing - armoured personnel carriers and diesel locomotives by GM Southwestern Ontario • Auto & auto parts industry throughout area • “Technology Triangle” – Cambridge, Kitchener & Waterloo • innovative technologies developed Cities of Northern Ontario • Sharp contrast to Southern Ontario • Resource base losing economic strength: – Resources exploited – Increased technology = fewer workers • Timmins - gold belt • Sudbury nickel belt (with smelting of nickel & copper) • Both now regional service centres yet have declining populations Table 5.6 – P. 271 Cities of Northern Ontario • Sault Ste. Marie: – steel town & border city – located on Seaway – Algoma Steel - struggling to survive - distance from markets (2001 - 100th anniversary & filed for protection) Cities of Northern Ontario • Thunder Bay: – Key in east-west transportation – Bulk products (grain, iron & coal) shipped in and out – Diminished with declining raw materials (iron ore - Atikokan) – Grain major product handled Ontario‟s Future • Strong in financial & manufacturing • Resource based industry challenged by diminishing resources = hinterland decline • Industrial core remains secure • S. Ont. needs to maintain or increase share in N. American market (esp. auto industry) • Again - being tied so strongly to U.S. market creates uncertainty in a number of areas.
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