Canadian-American Trade and Investment Under the Free Trade Agreement

(Hardback)

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Harold Crookell focuses on a major North American response to globalization: the U.S. - Canada Free Trade Agreement which became effective on January 1, 1989. Writing for executives of U.S. and Canadian businesses with activities in one another's countries, Crookell is particularly concerned with the effects of the agreement on parent-subsidiary relationships in the U.S. and Canada and on North America's ability to compete in the global economy. He provides a comprehensive overview of the history of free trade between the two countries, offers a clearer understanding of the agreement itself and how it differs from Europe 1992, shows how globalization is affecting parents and subsidiaries in the U.S. and Canada, and offers recommendations for transforming subsidiaries into integrated, contributing affiliates who will be effective global competitors in their own right. Crookell begins with a brief discussion of the history of Canada-U.S. dialogue on free trade over the past 130 years, showing how a dramatic change in the competitive environment finally led to passage of the current agreement. He then examines some important aspects of the Free Trade Agreement contrasting them with the key thrust of the Europe 1992 initiative. The third chapter deals with the ideology of free trade and the different challenges it poses for the two countries. He then turns to an extended examination of the issues of globalization and parent-subsidiary relations under the new agreement. Special attention is given to how American subsidiaries in Canada respond to the challenge of free trade and the role they can play in the competitive strategies of their parents. In the final chapter, Crookell looks at the many unresolved issues still being negotiated and the societal adjustment each country will have to make in order to ensure the success of the agreement. Anyone involved in U.S.-Canadian trade will find this book an important first step toward that end.

Reviews

Trade between Canada and the US constitutes the largest bilateral trade flow in the world. Each is the other's most important customer. For Canada the negotiation and acceptance of the Free Trade Agreement in 1988 marked a significant change in its economic and political history, while for the US it has been virtually a nonissue lost in the swirl of other trade issues. Crookell, a respected and widely published Canadian academic, has written a tightly reasoned and effectively organized work that addresses some fundamental questions regarding the treaty and its future impact upon both countries. In four chapters he reviews the history of the bilateral trading arrangements, outlines the basic features of each national economy, points out the major challenges facing each in adjusting to the elimination of bilateral protectionism, and places the treaty in the context of global economic forces. Crookell makes a major contribution in outlining how globalization will affect the relationship between parent and subsidiary both bilaterally and multinationally. This is where the impact upon the US will be most profound. Excellent bibliographic essay.' Suitable for senior undergraduate and graduate students and a worthwhile addition to any collection dealing with US-Canadian relations.-Choice
"Trade between Canada and the US constitutes the largest bilateral trade flow in the world. Each is the other's most important customer. For Canada the negotiation and acceptance of the Free Trade Agreement in 1988 marked a significant change in its economic and political history, while for the US it has been virtually a nonissue lost in the swirl of other trade issues. Crookell, a respected and widely published Canadian academic, has written a tightly reasoned and effectively organized work that addresses some fundamental questions regarding the treaty and its future impact upon both countries. In four chapters he reviews the history of the bilateral trading arrangements, outlines the basic features of each national economy, points out the major challenges facing each in adjusting to the elimination of bilateral protectionism, and places the treaty in the context of global economic forces. Crookell makes a major contribution in outlining how globalization will affect the relationship between parent and subsidiary both bilaterally and multinationally. This is where the impact upon the US will be most profound. Excellent bibliographic essay.' Suitable for senior undergraduate and graduate students and a worthwhile addition to any collection dealing with US-Canadian relations."-Choice

Author Bio

HAROLD CROOKELL is Professor of International Business at the University of Western Ontario in London, Ontario. His numerous articles on international business and business-government relations have been published in journals such as Sloan Management Review, Business Quarterly, and Canadian Journal of Administrative Science.