Marcarc
Forum Elite
Posts: 1870
Posted: Sun Aug 14, 2005 7:58 am
I haven't read all the above post yet, so this may be redundant, but a good study would be to simply look at the history of the maritimes in Canada and compare it to now. Just before Canada became a country was the reciprocity treaty with the US, which was essentially a free trade deal which was cancelled by the US once it no longer served their purpose.<br />
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The maritimes were the first industrial settlements of Canada-coal and metalworks in Nova Scotia, fisheries, and lumber from New Brunswick. That was the 'centralization'. That changed as Ontario began to be developed and early on the businessmen of Ontario did what all businessmen try to do, which is to control markets. So in a sense, when you look at Canada now it is a VERY close parrallel the maritime history, so if you want to point out 'where we're going', that's not a bad analogy.<br />
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It may already be a fait d'accompli, little discussion is made of the fact that early on Ontario businesses were controlled by US giants, in turn they controlled the maritimes and prairies. Central businesses in Ontario and Quebec then proceeded to buy out companies in more rural places and replace them with branches. Here's a nice quote I found:<br />
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"Branch businesses may be regarded as emissaries of the metropolis, advancing it's economic interests and consolidating its empire throughout the hinterland" LD McCann<br />
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So, for example, a bank is centralized in Ontario, and has branches everywhere. It's biggest 'client' may be a steel plant in Hamilton, which comes to it whenever it wants to buy a company, need consulting, or anything. So that is a 'preferred' client. Now look at a steel plant in Sydney, Nova Scotia, which may have all the same advantages as the one in Hamilton, but in fact has MORE because it is on the ocean which lowers shipping costs, and there is a wealth of ore in the province, which gives a lower operating cost. However, when this company is starting out, it needs capital. No bank is going to supply it with capital because it already HAS a preferred customer already making money for them, why lose that customer on a chance endevour? Essentially that's how 'branch economies' get screwed over when decisions are made elsewhere. And increasingly you find that the 'big' companies are not even canadian, they are multi-national.