Multinational patriots: Business -government relations in the Canadian aluminum and nickel industries, 1914--1945

The developing and often strained relationships between multinational corporations and governments have been the subject of extensive debate. At no time have these relationships been more critical than during the First and Second World Wars. As nations struggled for survival, the patriotism of these international businesses was of substantial concern. However, historians and economists alike have devoted little attention to these wartime relationships. Through the lens of economic and historical theory, this study examines the wartime business-government relationships between two major Canadian metals companies, the Aluminum Company of Canada (Alcan) and the International Nickel Company (Inco), on the one hand, and the Canadian Government on the other.;This behaviour was in direct response to the structure of the aluminum and nickel industries. Inco, absolutely dependent on Canadian ore reserves could not hope to maintain its place in the global market if it lost access to this competitive advantage. Alcan, on the other hand, processed imported bauxite, relying on inexpensive Canadian electricity to become a low cost producer. However, low-cost electricity was more widely available than nickel ore. Other countries had become competitive aluminum producers and if sufficiently pressured, Alcan could abandon Canada and seek a new host country. In this era, no other country was in a position to compete with Canadian nickel.;This study offers a new perspective on the forces which shape business-government relations and invites additional work into the interaction of industrial structure and government policy. This exploration will add substantially to our understanding of the relationship between multinationals and nation states.;Keywords. Canada, nickel, aluminum, war, multinational, Inco, Alcan, history, business, government, economic, mining.;Various departments were involved in coordinating Canada's economic war effort. An examination of their records reveals a significant difference in the relationships Inco and Alcan enjoyed with the Canadian Government. Whereas Inco sought at all times to appease, placate and serve, Alcan did not fall into line so readily. At times, business-government relationships in the aluminum industry were so poor as to produce government threats to seize the company's plants.