Before the First World War, the United States of America was only a developed country, lagging behind others countries, such as Britain, France and Germany, with a vast territory and vast natural resources. However, when World War I broke out, the United States had to produce war materials through France and Britain and export them to those countries. The United States thus acquired enormous amounts of money and technical skills, which allowed it to become one of the world's economic powers. As a result, the United States could invest in Canada to obtain raw materials for its secondary industries. However, American investments in the 1920s brought more profits to the United States itself than to Canada. There are three main reasons for this statement. First, since the creation of branches, Canadian companies have lost opportunities. Furthermore, the ultimate goal of American investment in primary industries was to strengthen American secondary industries. Finally, the meteoric growth of the Canadian economy in the mid-1920s benefited the United States rather than Canada. At first, American companies were located in Canada, although they were controlled by the United States. “American companies built the factories to avoid tariffs when importing goods into Canada” (Bell, 2012, para.1). In other words, because American companies could establish many factories in Canada and circumvent import tariffs, they could obtain double profits from the two advantages of establishing branches. Additionally, since secondary factories, partly for automakers, flourished, many Canadian auto industries have lost control. "It was also during these boom years that Canadian control of the industry was lost, as the American automakers with whom the Canadians had partnered...... middle of paper ... .../fr/article/foreign-investment/ http://www.sciencetech.technomuses.ca/english/about/tra15e.cfm http://www.pulpandpapercanada.com/news/pulp-and-paper-in -canada-its-first-century /1000152489/?&er=NABibliography: Ian Bell. (March 1, 2012). The branch economy. Retrieved from http://www.techvibes.com/blog/the-branch-plant-economy-2012-03-01 Ruben C. Bellan and Gord Mcintosh. (March 27, 2014). Foreign investment. Retrieved from http://www.thecanadianencyclopedia.com/en/article/foreign-investment/ Richard White. (nd). Making Cars in Canada: A Brief History of the Canadian Automobile Industry: 1900-1980. Retrieved from http://www.sciencetech.technomuses.ca/english/about/tra15e.cfm Mark Kuhiberg. (2003, May 5). PULP AND PAPER IN CANADA: Its first century. Retrieved from http://www.pulpandpapercanada.com/news/pulp-and-paper-in-canada-its-first-century/1000152489/?&er=NA