Canadian History Title
Home Links & Newspapers Online Binder Lessons & Activities Rubrics Web Design Tools & Help Faculty Emails

   PEOPLE & EVENTS > WORLD AT WAR > Branch Plants

What?
• A system introduced by Americans, it involves "parent companies" (outside of Canada), and branch plants which were replicas of their parent companies in Canada
• American parent companies could avoid high taxes on imports from across the border
• Americans often held the top management jobs
• Profits made by Canadian branch plants were frequently attained by the U.S.


Historical Significance
• Some Canadians felt that American capital from this system would develop Canadian industries, and transform Canada into a greater economic power
• Others feared complete economic takeover of Canada by the U.S.

 Picture
1914 Ford Branch Plant
Image Courtesy of The Century 		Related Links

• International Economics
• Branch Plants
• Dictionary of Social Sciences

   PEOPLE & EVENTS > TURN OF THE CENTURY > Branch Plants > REVIEW QUESTIONS

  1. What could American parent companies avoid under the branch plant system?
    1. shipping fees for imports and exports
    2. profits from Canadian branch plants
    3. the risk of bankruptcy
    4. tariffs on imports from Canada



  2. Who held most of the top management jobs and earned much of the profits that Canadian branch plants made?
    1. Canadians
    2. French-Canadians
    3. Americans
    4. people of German descent



  3. Why did some Canadians agree with the idea of Branch Plants?
    1. they believed that it would develop Canadian industries and create more jobs
    2. Canadian Branch Plants could avoid tariffs on imports from America.
    3. they thought American capital would make Canada into an economic power
    4. both 1 and 3



  4. Why were Canadians opposed to this system?

    1. they wanted Canada to establish closer relations with China instead
    2. they feared total economic takeover of their country by the U.S.
    3. they resented their American counterparts
    4. both 1 and 2




   PAGE DEVELOPED BY: Miss Chong's Class: Kelly Lo, 2002