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

Homework. . .

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