Outward Bound

From the Foreword: Most Canadians and a growing number of Americans are aware that our two countries are each other's largest trading partner...Investment issues have long been a source of tensions in the bilateral relationship because of Canadian concerns about the extent of U.S. ownership of key Canadian industries. Although the United States is now a debtor country, U.S. corporations continue to have substantial operations thoroughout the world, with those in Canada accounting for more than one-quarter of all their holdings in the industrial countries. Over the past decade, however, there has been a remarkable shift in bilateral investment flows. Investment by Canadian firms in U.S. operations has accelerated and the stake of Canadian multinational enterprises in the U.S. economy has risen rapidly relative to the value of U.S. holdings in Canada. This study...documents the changes that have taken place.