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The Auto Pact was the best strategy for the development of the Canadian economy in 1965. True, False, Uncertain, Explain!
This paper determines the success of the Auto Pact of 1965. Since the Auto Pact of 1965, Canadian light vehicle production has grown 186% to 2.4 million units; in contrast, U.S. light vehicle assembly has grown only 8% to 11.9 million units. Moreover, under NAFTA, Canada has gained a 16% production increase, but consumes only about 8% of new vehicles. These figures suggest that in Canada the Automotive Industry has had a successful relationship with free trade. In other words, branch plants have proliferated throughout Canada. For many years it has been argued that the economies of the USA and Canada are so closely connected that they are basically a single economic entity. To foreign investors interested in the US or Canada, North America is not only an appealingly lucrative market but, in comparison to the European Community or other regions of the world, it is relatively homogenous. "Marketing procedures, advertising strategies, legal requirements, product standards and related considerations may differ very little between San Francisco and Vancouver or New York and Toronto. 5 pgs. 8 f/c. 6b.
