Geography 2010A/B Chapter Notes -Production Sharing Agreement, List Of Auto Parts, Urban Geography
18 Dec 2013
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Automobile industry remains the key manufacturing activity in ontario; has become leading motor vehicle producer in n. america since 2004. 2009 production hit its all time low of 1. 46 million but was expected to rise by 2010. Expected to increase because of the need to replace an aging fleet of vehicles and demand from those entering the workforce. Low cost labour and easy access to the canadian market encouraged canadian textile producers to move offshore where much lower production costs of labour more than offset high transportation costs. The auto pact: auto pact (1965) is an example of a successful single industry production sharing agreement between canada and the us, the auto pact served three objectives. Secured guarantees that canadian automobile plants would not close. Brought to canadian plants the advantage of economics of scale by allowing them to specialize in a few types of automobiles that would supply the north american market.
