Basic and Non-Basic Industries

Basic Industries • Industries that sell their products outside the community, bringing “new” money into the community Non-Basic Industries • Industries that sell their products within the community, not bringing “new” money into the community

Decide if the description is an example of either a basic or non-basic industry:

Job Description

Coal miner in northeastern British Columbia Hairdresser at a shopping mall Art teacher Actor at the Stratford Shakespearean Festival Teller at the local bank Vice-president of Scotiabank Professor at Queen’s University Receptionist at a dentist’s office Air Canada pilot School-bus driver

Basic/Non-Basic

Basic Non- basic Non- basic Basic Non- basic Basic Basic Non- basic Basic Non- basic

Multiplier Effect

“total effect on the economy caused by an expansion or contraction in one part of it”

Basic industries drive the multiplier effect

Think of a ski resort •The money you pay to ski and stay goes to pay employee salaries • employees use this money to spend on things in the town • While at the resort, you may also spend money at a grocery store, dinner, Tim Hortons, new equipment, etc

Therefore, your money spent has multiplied, because others have used it to buy goods and services within the community

Christaller’s Central Place Theory

 1933 Walter Christaller, a German geographer, formulated a model for explaining why:

Large cities/towns are located far apart, while small towns/villlages are located close together.

 reasoned that “any good or service offered by a central place needs a minimum number of people surrounding it (hinterland) to stay in business”

Threshold population

High-order goods /services  require large threshold pop, because expensive and bought infrequently (ex. car dealer, hospitals) Low-order goods /services  small threshold pop, because inexpensive or bought often (ex. grocery store, post office)

High order goods/services

 provided only in cities (A)

Middle-order goods/services

 provided in cities (A) and towns (B)

Low-order goods/services

 provided in cities (A), towns (B) and villages (C)

villages

Urbanization vs. Urban Growth Urbanization : process of changing from rural to urban (% living in cities) Urban Growth : The rate (# of people) at which a city grows

Your Turn. . .

Complete the chart below by indicating where you would find the services listed:

Service Small town Small city Large City Brain surgery Daycare for a child Major league baseball Daily newspaper Dental checkup Internet connection Symphony concert Elementary school Recreational centre

Homework. . .

You will look at one SMART GROWTH principle (instructions on hand out), summarize it and report back to class