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US investments in Canada increased creating jobs:

  • Pulp and paper mills and mines. The majority of the resources were shipped back to US industries (75% for newsprint).
  • Metal mining. Most of the metal found itself in US products (cars, radios…)
  • US investors set up branch plants (factories in Canada but controlled by US corporations). By making products in Canada for the Canadian market, US companies avoided paying tariffs at the border!
  • By end 1920s, US corporations owned all automobile factories, 70% of oil businesses, 45% of machinery and chemical industries, and over half of rubber and electrical companies (see: Fig. 3-6 for graph of US investments in Canada).
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