The economy chapter of Discover Canada is one of the shortest in the guide, but it still gives the test plenty of questions. Economic facts also appear in other chapters: history, Modern Canada and the regions. This article brings them together in one place: the three types of industry, trade with the United States, the G7, what Canada sells to the world, the regional picture, and the social programs that grew after the Second World War. For the chapter itself, read the Canada’s Economy study primer.
The three main types of industry
Discover Canada sorts the economy into three groups. Learn the three English names exactly, because they appear in questions and in answer options: service industries, manufacturing industries and natural resource industries.
| Type | What it means | Examples in the guide |
|---|---|---|
| Service industries | Providing a service to people or businesses | Transportation, education, health care, construction, banking, communications, retail, tourism, government |
| Manufacturing industries | Making products, usually in factories | Paper, high-technology equipment, aerospace, automobiles, machinery, food, clothing |
| Natural resource industries | Taking things directly from nature | Forestry, fishing, agriculture, mining, energy |
Two facts are tested again and again. First, service industries employ the most people: more than three-quarters of working Canadians. Second, natural resources make up a large share of exports, even though far fewer people work in them. “Most jobs” and “a big share of exports” are different questions with different answers, so check which one the question asks about.
A quick check for any job
- Does it take something directly from the land, the forest, the sea or under the ground? That is natural resources.
- Does it turn materials into a product? That is manufacturing.
- Does it move, teach, heal, sell, build or serve? That is a service.
Follow one product through all three groups. A farmer grows wheat (natural resources). A factory turns it into packaged food (manufacturing). A truck carries the food to a store, where it is sold (services: transportation and retail).
A trading nation
Canada has always depended on trade. From the fur trade onward, selling Canadian goods to other countries helped build the country, and trade is still central to economic growth.
- The United States is Canada’s largest trading partner by far, and most Canadian exports are sold there. The answer is not the United Kingdom, China, Mexico or Europe.
- Canada and the United States began free trade in 1988. In 1994 Mexico joined, creating a wider North American free trade area. Learn the two years and who joined when. The names of trade agreements change over time, so this site does not test them.
- The Canada–U.S. border is often called the longest undefended border in the world.
- The Peace Arch stands on that border at Blaine, Washington, next to British Columbia and near the Pacific coast. It is a symbol of the close, friendly ties between the two countries.
Where the border runs and which oceans and lakes it touches is geography. Our Canada’s geography guide covers that.
Canada in the G7
Canada is one of the world’s leading industrialized countries and a member of the G7. The seven members are Canada, the United States, the United Kingdom, France, Germany, Italy and Japan.
Some editions of Discover Canada and many older study books say G8. That is because Russia once took part; Russia was suspended in 2014. If your study material says G8, remember that the group is the G7 today. Answer options sometimes include large economies that are not members, such as China, India or Brazil.
What Canada sells to the world
Natural resource products are a major part of Canada’s exports: energy, forest products, minerals and farm goods. This is why resources matter so much to Canada even though most people work in services. Canada’s factories also make goods such as automobiles, aerospace products and machinery for sale in Canada and abroad.
Natural resources are also part of Canada’s history. The fur trade drew Europeans deep into the continent, and in 1670 King Charles II gave the Hudson’s Bay Company trading rights over a huge area. Fishing, forestry and mining built many communities, and many regions still depend on them today.
The regions in one minute
The regions chapter of Discover Canada describes the economy of each part of the country. Here is the short version:
| Region | Economy in brief |
|---|---|
| Atlantic | Fishing; offshore oil and gas and hydro power in Newfoundland and Labrador; farming on Prince Edward Island; Halifax is the largest port on the east coast |
| Central (Ontario and Quebec) | More than half of Canadians live near the Great Lakes and the St. Lawrence River, Canada’s industrial and manufacturing heartland; Quebec is the largest producer of hydro-electricity |
| Prairies | Grain and oilseeds; oil and gas in Alberta; uranium and potash in Saskatchewan; farming, mining and hydro power in Manitoba |
| West Coast | Forestry, about half of British Columbia’s goods; the Port of Vancouver, Canada’s gateway to the Asia-Pacific |
| North | Mining of gold, diamonds and other minerals |
For each province’s capital and key facts, see provinces, territories and capitals.
Economic dates to know
| Year | What happened |
|---|---|
| 1670 | The Hudson’s Bay Company received its trading rights |
| 1929 | The stock market crashed and the Great Depression began |
| 1934 | The Bank of Canada, the central bank, was created to manage the money supply and bring stability to the financial system |
| 1947 | Oil was discovered in Alberta, the start of Canada’s modern energy industry |
| 1951 | For the first time, most Canadians could afford enough food, shelter and clothing |
| 1988 | Free trade between Canada and the United States began |
| 1994 | Mexico joined, creating a wider North American free trade area |
Prosperity after the war and the social safety net
After 1945 Canada grew quickly. Between 1945 and 1970 it had one of the strongest economies among industrialized countries. As Canadians became richer, governments built social programs that protect people when they are old, out of work or sick. The Modern Canada chapter covers this period.
| Program | What to remember |
|---|---|
| Old Age Security | First devised as early as 1927 |
| Unemployment insurance | Introduced by the federal government in 1940; today it is called Employment Insurance |
| Canada Pension Plan and Quebec Pension Plan | Both created in 1965 |
| Health care | The Canada Health Act sets common elements and a basic standard of coverage. Health is a provincial responsibility, so each province runs its own health insurance plan |
| Education | Provinces and territories provide publicly funded education |
Common mix-ups
- Construction is a service industry, not manufacturing. Tourism, transportation, banking and government are services too.
- Energy is a natural resource industry, not manufacturing.
- Raw or processed? Catching fish or growing crops is natural resources. Canning the fish or packaging the food is manufacturing.
- Jobs or exports? Services employ the most people. Natural resources are a large share of exports.
- 1988 or 1994? 1988 is free trade with the United States. 1994 is when Mexico joined.
- G7 or G8? Today it is the G7. The G8 in older books included Russia.
- Largest trading partner: the United States, not the United Kingdom, China or Mexico.
- 1927, 1940 or 1965? Old Age Security was first devised in 1927, unemployment insurance began in 1940, and the Canada and Quebec Pension Plans began in 1965.
- Unemployment insurance and Employment Insurance are the same program. Only the name changed.
- Who is in charge? Natural resources and health belong to the provinces. Currency and trade between provinces are federal. Agriculture is shared by both levels.
Now test yourself: take practice test 1 and look closely at any question about industries or trade. If you miss one, go back to the economy chapter.
Hướng dẫn này là bản tóm tắt bằng ngôn ngữ đơn giản, không phải tư vấn pháp lý. Quy định và lệ phí có thể thay đổi — hãy luôn kiểm tra trên trang web chính thức của IRCC trước khi nộp đơn hoặc thanh toán.