Question
During the 1960, a commonly held concern among Canadians was that Americans were buying Canada. This concern stemmed from the fact that Canada's net capital
During the 1960, a commonly held concern among Canadians was that Americans were buying Canada.
This concern stemmed from the fact that Canada's net capital outflow during the 1960s was consistently negative. As a result, foreigners, particularly Americans, were buying more Canadian assets than Canadians were buying foreign assets. Because many of these assets were firms operating in Canada, Canadians were concerned that eventually all of Canada would be owned by Americans. In response to this concern, the federal government of the time passed legislation limiting the amount that foreigners could invest in certain sectors of the economy.
How this legislation affected investment, and NCO in Canada? What does happened to Canada's real exchange rate and net exports as a result? Explain in words and graphs
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