The Vanishing Border - The Weaking of Canadian Business

Essay by tn2k2High School, 12th gradeA-, March 2002

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As we have entered the 21st century, we cannot help the feeling that we are being slowly cheated and robbed out of our own nation. With our dollar worth an entire 40 percent less than the American greenback, and a government oblivious to our currency's condition, many businesses are starting to use ruthless guerrilla tactics, selling our nation out, and heading south of the border. The American takeover of Canadian business is hardly a new thing: over the past twelve years, direct investment in Canada from the United States has surpassed an amazing $800 billion, and the figure is growing rapidly. There is a distinctive difference between passed invasions, and the current wave of sellouts. Not many Canadians realize how disturbing the reality of the Americanization of our economy has become. Some major recent victims of this tidal wave include Club Monaco Inc., Noma Industries Ltd., Peoples Jewelers Corp., and Shoppers Drug Mart Inc.

However, not every large Canadian company has resorted to the same type of desperate measures. Some of our largest companies have kept their headquarters in Canada; however have transferred their command posts to the United States. These companies include The Seagram Co. Ltd., based in Montreal, and Nortel Networks Corp., the $100 Billion Brampton based company, which is really run out of Dallas, Texas. Canada's largest independent chemical firm, Nova Chemical Corp., is moving it's headquarters from Calgary to Pittsburgh.

Many other countries have been Americanized by transferring their stocks into U.S portfolios. A prime example of this is seen in the Canadian National Railway Company, which is over 60% American owned. Though the Toronto Stock Exchange has been booming over the passed two years, the effect that the larger companies have had on the market, has been minimal. Over 225 of the stocks traded...