The reference to the empire was bc of canadas

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The reference to the empire was b/c of Canada’s participation in imperial preference which had to be inclusive of all nations of empire. Poses no threat to Canadian parts makers because other Empire nations does not have much output The Confrontation on the budget Sam McLaughlin opposed the budget and closed the Oshawa GM plant right after the budget was released The US GM head Alfred Sloan saw the tariff changes to Robb budget would cause Canadian price reduced and assumed consumption will increase and led to increase in profit to U.S manufacturers Sam realized by buying parts in Canada, & with increased demand as a result of lower vehicle prices, the Canadian operations could prosper under the budget provisions and reopened the plant Why lower tariffs? The tariff cause high vehicle prices in Canada The government decided to reduce requirement of 50 percent content to 40 percent also qualification measurement s would be based on total factory output rather that individual models – and Car prices dropped Canadian part Manufacturers’ sales increased Final years of prosperity In American vehicle supply exceeded the demand for new vehicles, and there was a collapse in sales for Ford model T
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Ford refused to updated the Model T design to keep it classic Ford was forced to stop Model T production and withdrawing temporarily from the market and focus on development of new model A which turned out to be a success Full speed... In Reverse: the great depression Mackenzie King was defeated by Tory (conservative) government- R.B. Bennett When the depression hit consumers held onto car for 5 or more years rather than trading it in every two to three years, which led to decrease in production of automakers After the depression sales began to pick- up and demand and output increased (as cars brought prior to Depression began to wear out) Reversal of tariffs policy Decided to increase tariffs and exercise tax and complete ban of import of used vehicles as they found that it would protect the Canadian Auto industry- new automakers established Tariffs widen the price gap between US and Canada on vehicle prices. Populists stated that increased protectionism would not help but worsen the situation, and increase tariff would 1) reduce exports 2) drive up domestic prices 3) depress demand and 4) worsen overcapacity problems The tariff board reported that tariffs would put burden on consumers however it is good for Canada to encourage maintenance and expand the Canadian automotive industry—the broad also suggest that the tariff should be reduce when necessary About-Face on tariff….Again: 1936 and onward The tariffs board’s suggestion was accepted and GOV decided to reduce tariffs to encourage trade and commerce between Canada and U.S Benefited consumers with lower prices, still provide the level of protection for the Canadian automobile industry The Canadian content provisions were streamlined(modified) and simplified Smaller new established automaker exited Canadian Market Conclusion
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