Canada's External Environment

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EXTERNAL ENVIRONMENT OF CANADIAN AUTOMOTIVE INDUSTRY
In economics, we define external environment as those factors which are outside the purview of the company’s ability to function in a highly globalized market. These factors don’t just affect the functioning of the organization, but also their goals and strategies.
The Canadian automobile industry is closely linked to the United States, because of the Canada-US Free Trade Agreement and North American Free Trade Agreement (NAFTA). The agreement allowed Canada to tap & gain access to North American market which is one of the world’s largest automotive market, with annual sales of about 20 million units and annual production of about 16 million units solely in its North American market. Further,

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