The third reason for a multinational enterprise to invest in foreign countries is to improve the efficiency of its operations. It seeks to organize its supply chains so that it can benefit from the comparative advantages of its operations worldwide. Its subsidiaries specialize so that they can provide goods and services in the most efficient fashion, both within the global company and to customers around the world. These subsidiaries then purchase and outsource materials and services to complete the supply chains.
What are Canada's comparative advantages (and disadvantages) in this world of global supply chains? To answer this question fully would require considerable research beyond the scope of this report. However, we can provide some partial answers.