Auto Industry in Canada

To fully understand why Canada is one the wealthiest nations in the world, we need to pay particular attention to Canada’s economic history. The economic history of our country has been marked by many important events that have paved the way for a successful economic future. A brief economic history of Canada would pay particular attention to important events such as the economic boom of the 1920s, the dark times of the 1930s; the Second World War during the 1940s and to also not forget the important trade agreements such as the auto pact and the NAFTA. Despite the above mentioned important events, Canadian economy has also been greatly influenced by its own economic sectors. Our economy has undergone through major changes during the past 3 decades. One of the factors that had an enormous impact on the economy of Canada has been that of the automotive industry. The automotive industry was born in the early years of the 20th century and it has since then, expanded very quickly. (White, 2007, p.3) The expansion has proved to be economically profitable and also unsuccessful at times. This essay will examine the economical and political impacts of the auto industry in Canada during the past years, by paying special attention to the economic regional imbalance, the auto pact, the North American Free Trade Agreement and also the shift in the Canadian auto market, from American automakers to the Japanese automakers during the past three decades. The automotive industry expanded Canada’s economy by increasing the employment levels, the improvement of roads and contributed to an increase in revenues due to licences and gasoline fees. It also strengthened the economical relationship with our neighbours to the south and has also improved the economy of the southern provinces as it is heavily concentrated in the province of Ontario with major assembly plants in Windsor and Oshawa.
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