MGMT 1030 Lecture Notes - Lecture 39: Potash, Foreign Investment Review Agency, Pierre Trudeau
9 May 2018
School
Department
Course
Professor
MGMT 1030
Lecture 39
1) Liberal Return, 1963-1973
➢ Return to prosperity during the governments of Lester Pearson and
Pierre Trudeau
➢ Devaluation of Canadian dollar spurred exports
➢ New industries such as petroleum and potash were expanded
➢ 1965 Auto Pact with the United States
2) Economic Challenge, 1973-1982
➢ Economic Performance
➢ Real GDP growth declined from 7.7% in 1973 to -3.0% in 1982
➢ Unemployment increased from 6% in 1973 to 11% in 1982
➢ Inflation rate increased from 5% in 1973 to 10% in 1982
➢ Federal budget deficit increased from $3.8 billion in 1975 to $20.3
billion in 1982
➢ Government Response
➢ Stringent monetary policy
➢ Bank of Canada interest rate reached 21% at its peak in 1981
➢ Anti-Inflation Board created in 1975 to limit wage increases
➢ Largely ineffective
➢ Increasing concern during the 1960s and 1970s about the
dominant position of American foreign investment
➢ Canada Development Corporation formed in 1971
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Document Summary
Return to prosperity during the governments of lester pearson and. New industries such as petroleum and potash were expanded. 1965 auto pact with the united states: economic challenge, 1973-1982. Real gdp growth declined from 7. 7% in 1973 to -3. 0% in 1982. Unemployment increased from 6% in 1973 to 11% in 1982. Inflation rate increased from 5% in 1973 to 10% in 1982. Federal budget deficit increased from . 8 billion in 1975 to . 3 billion in 1982. Bank of canada interest rate reached 21% at its peak in 1981. Anti-inflation board created in 1975 to limit wage increases. Increasing concern during the 1960s and 1970s about the dominant position of american foreign investment. Foreign investment review agency formed in 1973: economic climate of new france. New france ceded to britain in 1763. French colonies dependent on the fur trade and farming. 70% of all exports were furs in 1739. New france reorganized as a crown colony in 1663.
