Description: Toyota will invest $421 million in Cambridge, Ontario to work on the next generation of Lexus RX 350 and 450 vehicles. To support this investment, both the Federal and the provincial governments are making sizable investments—to the tune of $100 million.

Source: Toronto Star

Date: July 31, 2015

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Questions for Discussion:

1. How will this investment benefit the economy?
2. Discuss the reasons why the federal and the provincial governments are also investing in this project?
3. Given the investments by the governments, what role should the government play when automobile companies decide to shut shop and move to another location?