Modern industrial organizations in Canada are synonymous with the branch plant economy phenomenon. In general, "the term branch plant economy refers to a convenient shorthand term to describe a regional economy where a large proportion of the employees are in establishments owned by firms whose head office lies outside the region" (Watts 1). In Canada, branch plant economies are subsidiaries of companies based abroad, mostly in the U.S.
A branch plant economy is a strategic tool used by transnational corporations to maximize profits, avoid tariff fees and encourage exports. …
