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A branch plant economy is an economy that hosts many branch plants (i.e. factories or firms near the base of a supply chain/command chain), but does not host headquarters. [1] [2] In particular, the term was used in arguments that countries must develop independent companies, as a form of economic nationalism, to create better jobs and avoid having managerial positions filled only by corporate workers from outside the country. [1]
The term was used in the 1970s to describe Canadian reliance on US headquartered corporations or Scottish reliance on English-headquartered corporations [1] but may have fallen out of mainstream use.[ citation needed ] Some opinion pieces still use the terminology to decry reliance on outside states, especially with regards to Canada’s relationship with the United States. [3] [4]