Direct Investment Abroad: A Strategic Tool for Canada

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Direct Investment Abroad: A Strategic Tool for Canada


Author: Danielle Goldfarb


Canadian companies that establish or acquire operations abroad are often assumed to be doing what is best for them, but detracting from Canada’s economy. This analysis cuts through common perceptions and turns to the evidence. It examines the effects of investing abroad—not only for companies, but for productivity, jobs, skills, trade, and investments in Canada. The analysis looks at how the different characteristics of, and motivations behind, investments may result in different outcomes back in Canada. And it points to what this means for governments and businesses.

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The aim of this briefing is to educate Canadians in general and decision-makers in particular about the effects Canadian direct investment abroad has back in Canada itself.

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