Branch plant economy is terminology used to describe national/local economies that host many branch plants (i.e. factories or firms near the base of a supply chain/command chain), but do not host headquarters.[1][2] In particular, it 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]
It 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]