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Multinationals and Canada-United States Free Trade

Alan M. Rugman


The largest trading partner for the United States is not Japan, as most believe; it is Canada. There is three times as much trade between the two North American countries as there is between the United States and Japan. About 25 percent of all U.S. exports go to Canada and nearly 80 percent of Canada's exports are to the United States. In addition, these two countries account for the largest two way flows of foreign direct investment in the world. Largely at the behest of Canada, the world's most bilateral trade agreement was negotiated between 1986 and 1988. On January 2, 1988, President Ronald Reagan and Prime Minister Brian Mulroney signed the Canada-U.S. Free Trade Agreement, which was later ratified by both governments and became effective January 1, 1989. The author's background research for the Canadian negotiators of the treaty was the catalyst for this path-breaking economic and managerial study about the nature of two way trade and investment. This book captures, from a neglected Canadian perspective, many of these key policy and business issues, especially the nature of foreign direct investment by both home and host country multinationals.

Alan M. Rugman is Professor of International Business at the University of Toronto and Research Director of the Ontario Centre for International Business and was previously the Director of the Centre for International Business Studies at Dalhousie University. He has been a visiting professor at Columbia Business School, London Business School, and Harvard University.

Dr. Rugman was a member of Canada's International Trade Advisory Committee from 1986–1988, during which period the Canada-U.S. Trade Agreement was negotiated. Selected for inclusion in Who's Who in the World and the Canadian Who's Who, he has also served as a consultant to both private sector companies and government agencies.



book jacket for Multinationals and Canada-United States Free Trade


6 x 9
194 pages
ISBN 978-0-87249-625-5
cloth, $39.95s
Critical Issues Facing the Multinational Enterprise

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