Final answer:
Canada's postwar growth, financed by U.S. investment, led to the strengthening and diversification of its economy through infrastructure development and integration with the U.S. economy, eventually resulting in the Canada-U.S. Free Trade Agreement.
Step-by-step explanation:
After World War II, Canada's postwar growth was significantly financed by U.S. investment, leading to several key economic developments. The influx of U.S. capital into Canada bolstered various sectors including infrastructure such as railroads, roads, water systems, and education. Coupled with the National Policy, which protected Canadian industries through tariffs, this foreign capital helped diversify and strengthen the Canadian economy. Over time, as the U.S. economy began to face challenges due to inflation and increased international competition, the relationship between the two nations evolved and culminated in the Canada-U.S. Free Trade Agreement (Canada-US FTA) in 1988, which further integrated their economies by eliminating barriers to trade and investment.