The fur trade was the foundation of the economy in early New France. Show how this is true in the cause and effect diagram.
Bubble 1: The Courers de Bois earned money selling furs. (Already filled out)
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Bubble 2: The Courers de Bois spent their money on shops. (My answer***)
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Bubble 3: Shop owners used profits to buy food from farmers. (Already filled out)
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Bubble 4: The farmers use their profits to buy from other businesses. This went on. (My answer***)
Check my answers. (Please.)
Your answers seem to be correct. Let's analyze the cause and effect diagram to understand how the fur trade was the foundation of the economy in early New France:
Bubble 1: The Courers de Bois earned money selling furs. This is the starting point of the cause and effect chain. Courers de Bois were French-Canadian fur traders who ventured into the wilderness to trade furs with Native Americans.
Bubble 2: The Courers de Bois spent their money on shops. Courers de Bois, upon earning money from selling furs, would spend it on various goods and services available in the settlements, such as tools, clothes, and other daily necessities. This created a demand for goods and supported the local economy.
Bubble 3: Shop owners used profits to buy food from farmers. The money spent by Courers de Bois in the shops allowed shop owners to generate profits. These profits were then used by shop owners to purchase food from local farmers. This created a market for farmers and helped them sustain their agricultural practices.
Bubble 4: The farmers use their profits to buy from other businesses. As farmers sold their produce to shop owners, they also earned money. With their profits, the farmers would then buy goods and services from other businesses, such as blacksmiths, carpenters, and other artisans. This cycle continued as the money circulated within the local economy, stimulating growth and supporting various industries.
By analyzing this cause and effect diagram, we can see how the fur trade acted as a foundation for the economy in early New France. The income generated by Courers de Bois through fur trading, and subsequent spending in shops, created a demand for goods and services, which in turn supported farmers and other businesses. This interdependence between different economic actors helped foster economic growth in early New France.