Lecture 5 Automobile Industry

Roll back of taris general motors uses the slogan

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Unformatted text preview: of war has a severe economic downturn Value of Canadian manufacturing drops from 650 million to 475 million BUT automobile manufacturing grows Fall 2012 Jim Love ADMS 1010 17 Threat of Reciprocity •  1854 to 1866 – first reciprocity agreement finally abrogated by US •  1890 – Imperial preference •  1911 – Laurier tries to re- introduce reciprocity and is defeated •  North/South alignment happens anyway – 60% of imports were from south of the border •  Imperial preference AND proximity to US give Canada a real advantage Fall 2012 Jim Love ADMS 1010 18 Canadianism Vs Con>nentalism •  Canadian Business is opposed to free trade. •  Sam McLaughlin (McLaughlin Car Company) –  “Reciprocity is an>- Canadian •  Henry Ford –  “Free Trade brings healthy business. I can tell you those fellows over in our Canadian unit are going to have to manufacture more efficiently [under reciprocity] •  Due to the earlier protec>on and Imperial preference Walkerville had the size to compete with the US •  Sam McLaughlin sells to General Motors for $5m in 1918 Fall 2012 Jim Love ADMS 1010 19 Tariff’s Under Arack 1926 (Robb) •  Price difference between US and Canada...
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