ABSTRACT
This chapter focuses on the more significant linkages between trade and investment flows in United States (US)-Quebec economic relations. As a transition before moving to the foreign investment question, brief mention should be made of the existing possibilities of energy exports. Exports of electricity to the United States have gone from under 50 million kilowatt-hours per year in 1970 to 68 million in 1971, 95 million in 1972, 270 million in 1976, 1,406 million in 1978, and 7,500 million in 1979. The literature clearly shows that there are benefits stemming from foreign direct investments and the activities of multinational corporations. In 1978, foreign direct investment was virtually nonexistent in Quebec in the agricultural, forestry, and fisheries sectors, but was present in the sectors to a significant extent in Ontario. Host countries are concerned with maximizing the net benefits that they can derive from foreign direct investment, explains widespread government intervention in the field.
