Massey Harris Case related Notes:
Roles of Agriculture and Manufacturing Industries in Canada
1. Historically Canada industry and agriculture were impacted by Mercantilism theory
2. Mercantilism is an economic theory that there is a fixed amount of wealth in the world and that a
nation's prosperity depends on its success in accumulating wealth by exporting more than it
imports. European nations attempted to put it into effect through commercial policies designed to
produce a favorable balance of trade, through acquisition and development of colonies as
exclusive markets and sources of raw materials.
Manufacturing in Canada
1. Manufacturing in Canada had its beginnings early in the 18th century, but it was not until the
late 19th century, with the development of electricity and a national political objective, that it
achieved significant growth. Throughout the 20th century, manufacturing has contributed
significantly to the economic well-being and prosperity of Canadians
2. During the 1870s and early 1880s., the discovery of electricity and the subsequent harnessing
of some of Canada's vast hydro resource provided industry with an efficient, low-cost source
of hydro-electrical energy. At the same time the extent of the mineral wealth beneath the
Canadian Shield began to be realized.
3. Between 1945 and the 1990s, manufacturing has accounted for 22-24% of Canada's total real
output of goods and services.
4. Four developments in trade policies and practices in this period affected Canadian
manufacturers substantially: the Canada-US Auto pact; the GENERAL
AGREEMENT ON TARIFFS AND TRADE (GATT); the world competitive
environment, particularly the emergence of lesser developed countries; and the
bilateral FREE TRADE agreement with the US reached in late 1987 and its
expansion in the late 1990s to include Mexico
5. With "freer trade," the volume of manufactured goods imported into Canada has
increased. Canada's degree of trade exposure is high by international standards,
6. Ontario and Quebec dominate the manufacturing sector in Canada though the western
provinces are increasing particularly in the area of extracting technology.
What changes in competition?
1. Technology (Harris)
3. PEST analysis of the industry.
a. Consumer confidence
b. Interest Rates
d. Business cycles
e. Commodity process f. GDP GNP
d. Demographic changes
e. Income distribution
• Government Investment
• Adoption rate
• Unrelated development
What changes in demand are in our case?
1. Famine in England and Ireland
2. War in USA
Porter’s Five Forces Framework 1. Threat of Substitutes
a. The potential for new products to displace the existin