ADMS 1000 Chapter : The Urge to Merge

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

In the case of inco and falconbridge, it s not just about preserving. Canadian ownership of one or two companies, but also about preserving an entire industry. In canada, 1 in 5 companies has a foreign owner, according to the latest statistics. The argument for having a head office in canada is also familiar: if ceos are located in head offices in canada, they will be more likely to make decisions that will help the canadian economy. Job cuts will be in other countries, research and development will remain, profits will stay in the country. In order to quickly increase production capacity, big players snap up smaller ones. This allows companies to bolster market share, create economies of scale and gain a competitive edge. A study released by statistics canada last month found that, between 1999 and. Foreign firms created about 6,000 more jobs in canadian head offices than did.