Canada Globalization Analysis

938 Words2 Pages
bulb-icon

Recommended: Impact of globalization today

Globalization immensely helps Canada into not only opening but enhancing its economic growth and trade opportunities. By definition according to Merriam-Webster, globalization is the act of globalizing, but especially in the case of an integrated global economy. The benefits of globalization far outweigh its drawbacks as already seen with existing free trade agreements between Canada and other major world powers such as the United States and the European Union. Further to this, it sends a strong message to the rest of the world that Canada is open for business and willing to negotiate and strengthen economic ties with any country that shares similar interests in progressive economic development and growth.
Historically speaking, Canada, …show more content…

The U.S. is Canada’s largest trading partner, whereas Canada is the 2nd largest partner with the Americans. According to Industry Canada, in 2014, Canada exported $402.8 billion worth of goods to the U.S. accounting for 76.80% of all Canadian foreign exports. The United States, on the other hand, exported $280.3 billion worth of goods to Canada in 2015 which accounted for 16% of all American exports according to the Census Bureau. Canadian corporations have a direct impact on the American job market as they currently employ 500,000 American citizens. In the case of trade between Canada and Mexico, in 2013 Canada exported just over $30 billion dollars in goods to Mexico which the most exported product was oilseeds, whilst importing $5 billion in goods from Mexico where the most imported products were trucks and motor vehicles. NAFTA plays a huge role in ensuring and promoting free trade between the three countries of North America by preventing tariffs, duties and other taxes from being instated on goods as long as they had been produced within one of those three countries. Other major benefits to NAFTA include domestic growth of GDP in

Show More
Related

  • U.S-Mexico Borderlands

    1084 Words  | 3 Pages

    After three years of debate NAFTA was established in 1994. Fears concerning NAFTA included job creation, loss and transfer, wages and infrastructure. (Ganster/Lorey 188-189) However, with the implementation of NAFTA the economy grew. Ganster and Lorey reveal that bilateral trade increased by $211.4 per year from 1989 to 2004. Commerce grew by 20 percent in the first six months of 1994. There were advantages and disadvantages of NAFTA, nevertheless, NAFTA “intensified the integration of the two economies rather than distancing them.” (Ganster/Lorey 190)

    Read More

  • The Canada-U.S. Trade and Economic Relationship

    1583 Words  | 4 Pages

    The United States is Canada's largest trading partner and is the largest market for Canadian goods. The Canada-U.S. Free Trade Agreement (1989) and the North American Free Trade Agreement (1994) have both been crucial to increasing market opportunities for Canadian exporters in the U.S.

    Read More

  • Canada 's Global Financial Crisis

    1104 Words  | 3 Pages

    ...munity. Although Canada is dependent on trade with the United States, NAFTA proves that the relationship goes both ways. Canada proved its worth in the global financial crisis, showing that it can practice good policy despite the dependence.

    Read More

  • The Pros And Cons Of NAFTA

    1027 Words  | 3 Pages

    On January 1st, 1994, a treaty that created the largest free trade area were signed into place by the trilateral of United States, Canada, and Mexico. NAFTA is a promise made by world’s most significant corporations claiming to create many high paying jobs and raise the standard of living in the US, Canada and Mexico. As we approach its 21st birthday, NAFTA now links 450 million people producing trillion dollars’ worth of goods and services each year. However, behind this seemingly good deal, it also created many underlying issues. Beginning with NAFTA giving corporation opportunities to move factories aboard to the lower-cost Mexico. Manufacturing aboard did not only outsourced American jobs, it also caused manufacturers that remained to lower

    Read More

  • The Pros And Cons Of NAFTA

    2266 Words  | 5 Pages

    Some of the consequences of free trade as seen in the case of NAFTA include outsourcing of jobs to other countries, crowding out of domestic industries, poor working conditions among others. NAFTA led to shifts in jobs and production to Mexico as a result of free trade (Villareal & Fergusson, 2015). It has also been blamed for stagnation of wages in the US because of people moving to work in Mexico and Canada and companies also moving there because of the low production costs. According to the centre for Economic and policy research, a surge of imports lead to the US loosing 600,000 jobs in only two decades (Villareal & Fergusson, 2015). In Mexico, the trade is estimated to have put two million workers out of work due to agriculture that is highly subsidized by the US. This then led to increased rates of immigration into the US as people searched for better means of living (Weisbrot et al, 2014). Canada did not suffer any extreme effects as result of NAFTA. However, the productivity gap between itself and the US economy was not closed because its labour productivity remained at 72% as that of US levels (Villareal & Fergusson,

    Read More

  • The Failure of the North American Free Trade Agreement

    1348 Words  | 3 Pages

    NAFTA's promoters promised 200,000 new jobs per year for the U.S., higher wages in Mexico and a growing U.S. trade surplus with Mexico, environmental clean-up and improved health along the border. The reality of the post-NAFTA surge in imports from Mexico has resulted in an $14.7 billion trade deficit with Mexico for 1998. By adding the Mexican trade deficit to the deficit with Canada, the overall U.S. NAFTA trade deficit for the year 1998 is $33.2 billion dollars. In the last five years we have gone from a pre-NAFTA trade surplus of $4.6 billion with Mexico to a $14.7 billion deficit. Using the Department of Commerce trade data in the formula used by NAFTA proponents to predict job gains, the real accumulated NAFTA trade deficit would translate into over four hundred thousand U.S. jobs lost.

    Read More

  • Canadian-American Relations

    855 Words  | 2 Pages

    First of all, Canada benefits from close ties to America because it helps us with our economy. Back in the late 1950’s and 1960’s the opening of American branch plants were introduced to Canadians. American companies would come to Canada and open large American companies to serve to Canadian consumers. New policies started to pass down in 1965 such as the Automotive Products Trade Agreement (APTA or Autopact). This policy allowed free movement of vehicles to pass between the Canadian and American border. This also allowed American Branch plants to operate in Canada without having to pay tariffs. To this day it is estimated that more than 50% of businesses that operate in Canada are foreign owned. However this can be looked at as a positive aspect since this provided many jobs for Canadians. There was also a great persuasion for Canadian consumers to buy Canadian made items because it helps increase jobs in Canada. Another reason to why American ties helps with the Canadian economy is because America is Canada’s biggest trading partner. Considering the geographic position between Canada and America, in order to get across ones border there is only a need to cross land with a vehicle. Both of the countries are in the...

    Read More

  • Unraveling Mexico: A Journey Through Its History and Culture

    1267 Words  | 3 Pages

    Mexico has a gross domestic product of over $1 million in 2013. The sectors that contribute tremendously to the GDP include Agriculture (5%), services (65%), and industry (28%). The major industries in the country include the manufacturing sector. The country is the source of a myriad of manufactured goods including food, beverages, motor vehicles, clothing and textiles. The country also exports large quantities of oil. The US is also the largest trading partner in Mexico, with a trade deficit of over $49 billion in 2015 (Miller,

    Read More

  • Essay On Canada Globalization

    1423 Words  | 3 Pages

    The Canadian government’s move toward globalization is creating a level playing field for the Canadian economy and the culture by closing the gap of trade barriers and opening up the market, thereby making Canada a more industrialized and multicultural society. Globalization, the term is defined as the interactions among people of different nations through international trade and communication integration. This approach is unlocking the nationalistic perspectives to broader outlook, thus encouraging multiculturalism as well as linking ties among the nations.

    Read More

  • Canada In The Twentieth Century

    832 Words  | 2 Pages

    Have you ever wondered which events in Canadian history have been the most significant in shaping Canadian identity? Many significant events in the twentieth century left a lasting legacy for Canada. Canada would not be the culturally rich, prosperous and progressive nation that it is today, without its immigration patterns in the past. World War I (WWI) was also a significant event as it united Canada and left behind a legacy of sacrifice and national pride. Economic development during the post war period contributed to Canadian success nationally and globally. Immigration, WWI and economic development were significant events in Canadian twentieth century history. Each event brought new and powerful

    Read More

  • Canada Is Becoming Too Americanized

    933 Words  | 2 Pages

    Canada and the United States are the largest trade partners in the world. It is the result of the geographical position of two countries and the free trade between two countries. It should be a great thing for the economies of both countries, but since the North American Free Trade Agreement was signed, American businesses almost took over the Canadian economy. When the American companies started to make more business in Canada, it brought more jobs and money to the country in the short-term. But as a long-term effect Canadians became even more depended on the U.S. as the American companies started dominating Canadian companies in Canada. Also, today Canadian manufacturers have little protection from the government when ch...

    Read More

  • Globalization: The European Union, the ASEAN Group, and NAFTA

    3413 Words  | 7 Pages

    Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across the borders of Canada, US and Mexico but it fostered shared interest in investment, transportation, communication, border relations, as well as environmental and labour issues. The North American Free Trade Agreement was groundbreaking because it included Mexico in the arrangement.2 Mexico was a much poorer, culturally different and protective country in comparison to the likes of Canada and the United States. Many members of the U.S Congress were against the agreement because they did not want to enter into an agreement with a country that had an authoritarian regime, human rights violations and a flawed electoral system.3 Both Canadians and Americans alike, feared that Mexico's lower wages and lax human rights laws would generate massive job losses in their respected economies. Issues of sovereignty came into play throughout discussions of the North American Free Trade Agreement in Canada. Many found issue with the fact that bureaucrats and politicians from alien countries would be making deci...

    Read More

  • Advantages And Disadvantages Of Nafta In Canada

    534 Words  | 2 Pages

    With trading through U.S and Mexico, Canada has been greatly growing the economy. Companies in Canada can import products which are cheaper and more reasonable to sell to Canadian consumers, so that they are able to make more money than they manufacture the products themselves. Moreover, NAFTA has created jobs. When people think about NAFTA has created a lot of jobs in variety industries, they always think that only people who are living in the country will get benefits of that. Nevertheless, it is not. Also, companies have a benefits of creating jobs by NAFTA because creating jobs means that a company has more opportunities to manufacture products by increased employees and

    Read More

  • Why Canada is a Great Place to Live

    388 Words  | 1 Pages

    In a developing country like Canada, new products are continually being produced for use within Canada and to be exported to. other countries for profit. Canada’s healthcare is superior; we are able to eliminate diseases. like the measles. Canada keeps up with the latest technology in medical equipment and medicines to treat Canadians.

    Read More

  • The Garment Industry

    1594 Words  | 4 Pages

    Globalization is basically about attempting to make things global and expanding products and companies over seas to countries all around the world. It can also be classified as the process of creating languages, services, and products that apply not just to an individual neighborhood or city or country, but to the whole world. Canadians have experienced many benefits that globalization has brought to their lives including the availability to products and services from all around the world. However, at the same time on the other side of the world it has had many pessimistic or negative effects on workers in developing countries. As Globalization began to boom, the number of sweatshops also increased greatly and its effects were most definitely harming in many ways to the individuals employed by them; mainly women and children. Out of all the industries that have become globalized, the textile and garment industries are amongst the most. Mutually the textile and garment industries make up one of the largest sources of industrial employment in the world. In virtually every country around the world clothing is being produced but being sold somewhere else. Around 30 million people are making clothes and textiles around the globe and out of those thirty million, most of them are women. Around the world women and children are suffering because of the introduction of sweatshops, low wages, unsafe working environments, free trade zones, foreign control, sub contracting and abuses of human and worker rights.

    Read More

More about Canada Globalization Analysis

Open Document