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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
Job Description Basic/Non-Basic
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
Decide if the description is an example of either a basic or non-basic industry:
Basic
Basic
Non- basic
Non- basic
Non- basicBasic
BasicNon- 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 Christaller’s Central Place TheoryPlace 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 GrowthUrbanization vs. Urban Growth
UrbanizationUrbanization: process of changing from rural to : process of changing from rural to urban (% living in cities)urban (% living in cities)
Urban GrowthUrban Growth: The rate (# of people) at which a : The rate (# of people) at which a city growscity 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