Foreign or Domestic?

Canadian Auto Production 

No matter how productive and efficient a company or industry is, external factors are bound to have a significant impact on the profitability. The exchange rate is one of the biggest factors in determining your success as a producer. As your currency becomes more expensive internationally, you become less of a desirable destination for foreign investment. Such is the case for the auto industry in Canada. Some have predicted that by the year 2020, auto production in Canada could decrease by an astonishing 25%. The North American Free Trade Agreement allows shared car manufacturing to take place in Canada, Mexico, and the United States. Though as the Canadian dollar continues to rise, it is more cost efficient for producers to move to places such as Mexico, where labour is cheaper. There, the company can operate in a profitable manner and will face fewer restrictions by the government. The costs outweigh the efficiency and productivity of producing cars in Canada. Invariably, business men and women will go where the construction and production is the cheapest.