ABSTRACT
Exports, direct investment and licences are all substitute ways for foreign manufacturers to access Canadian markets. The particular combination of them used by a firm depends mainly on which pro vides the largest profit and rent in the host country's prevailing economic environment. All three methods provide Canada with knowledge about existing as well as new management and technological practices which stimulate productivity, competitive ness and growth. However, each has different effects and implica tions for Canada's stock of intellectual capital.
