BUSI 300 Project #1 Option A: Agglomeration ...

BUSI 300
Project #1
Option A: Agglomeration Economies and Equilibrium of Location of Firms
PART 1: AGGLOMERATION ECONOMICS


Wine Industries of Ontario and those in British Columbia:


The most important factor in the development of wine districts in both Ontario and British Columbia is climate, with geography becoming a close second. Soil conditions, the amount of sun light, the temperature of winds and the effects of winter are all vital to the development of grape vines and the character and quality of the wine from which they are made. Although Ontario has harsher winter weather than British Columbia, on average, the southern peninsula of Ontario is the furthest point south in Canada. Extending between Lake Ontario and Lake Erie to the east and Lake Huron to the west is where Ontario wine producers grow their grapes, predominately in the area known as Niagara Region. Approximately 85% of Ontario’s wineries are located in this region. Niagara extends beyond the 49th parallel more than any other part of Canada. This geographic location means this portion of Ontario has the most amount of sunlight per year and the most moderate climate in Ontario. This, plus naturally fertile soil, contribute to produce vineyards of supreme quality. The Niagara peninsula accounts for almost three quarters of Canada’s grape growing industry. The vineyards in this area also benefit from the lake’s offshore breezes which cool the vines during the hot summer months, and freeze the vines in winter to create some of the best ice wine in the country. The circulating activity prevents cold from sitting in lower lying areas during threatening periods of frost. Lake Ontario influences the regions temperatures which often act like a hot water bottle raising the temperature in the winter. In the spring, the breezes from its winter cooled winters help to hold back the development of the fruit buds till the danger of any spring freezes passes. The lake often cools the summer air so that grapes do not ripen too quickly, and it also keeps the air warm during the fall to protect from the first fall freeze.






British Columbia has the mildest climate in Canada. Plus the highest amount of annual rainfall. In addition, lands located around British Columbia’s mountain ranges create protected valleys which capture sunlight and warmth while minimizing rainfall and precipitation. The Thompson Okanagan region is the primary location for BC’s wineries due to its location close to the mountain ranges and with numerous surrounding lakes and valleys. The Okanagan Valley lies in a rain shadow, between the Coastal and Monashee mountain ranges. This results in very low annual average rainfall in comparison to other parts of British Columbia. In addition in the summer, there are long daylight hours and high light intensity due to the northerly latitude. This helps with prolonged ...