Is Globalization Beneficial for Canada - Essay Example

Is globalization beneficial for Canada? According to Thomas Friedman of New York Times, “globalization is the next great foreign policy debate. Yet as the debate expands, it gets more confusing”(Rodrik, p.19).When it appeared initially in the horizon, globalization created lot of concerns in the minds of many countries. China like communist countries earlier visualized globalization as a strategy by capitalist countries to exploit the wealth and resources of other countries. However, the scenario has gradually changed and now most of the countries in the world accept globalization as a blessing rather than a curse. China is the number one exploiter of globalization at present. It is difficult for a country to progress properly with the help of individual capabilities alone. Globalization helps countries to mobilize its resources more effectively with the help of other countries. Collective growth is the major slogan put forward by globalization. Globalization affects almost the entire segments of human life. It affects economic, social, cultural, political and legal aspects of human life. Canada is one country which still keeps some reservations about globalization. Many of the Canadians still believe that globalization may help only rich countries whereas poor countries may not get many benefits out of it. In their opinion, globalization may destroy social, cultural, environmental and political values. However, it is an accepted fact that globalization can not only increase the cooperation between countries and but also it can reduce the conflicts between countries. It definitely sounds good that Canadian companies can operate in any part of the world and sell their products anywhere in the world without much barriers because of globalization. Moreover, Canadians may get better products for cheaper prices because of globalization. This paper analyses the pros and cons of globalization and argues that globalization is definitely beneficial to Canada in the long run. Globalization brought many positive political changes in the world. “Globalization opens up new possibilities for democratic influence on essential common issues which by their nature are about the notion of the nation’s state” (Torres, p.364). According to Lieber and Weisberg (2002), “Globalization is a vital step toward both a more stable world and better lives for the people within it"(Lieber and Weisberg, p.274). It should be noted that the totalitarian administrations in countries like Libya, Egypt, Syria, Bahrain are on the verge of destruction because of agitations from the public. Globalization helped people in such countries to realize the extent of oppression they are facing and they started struggle for democracy in their countries. “Globalization is a multifaceted process and can be characterized as a systematic decline in the barriers to the cross-national flow of products, factors (capital and people), values and ideas”(Kaplinsky, p.46). In countries like America, Britain or Canada, manpower shortage is a big problem whereas in countries like India, China etc skilled manpower is excess. Exchange of workforce and outsourcing like activities help expensive labor oriented countries to exploit cheap labor markets. A work which is costing $ 100 in Canada can be executed in countries like India for $ 50 with the help of outsourcing. Moreover, immigrant communities in Canada always ready to work for cheap wages which help the industries or organizations in Canada to compete effectively in international market. Canadian products cannot reduce the price or compete effectively in the international market if Canadian organizations employ only highly paid locals in their firms. “Rises in international trade openness have exerted some pressure on policy makers to lower business cost through tax reductions. Tax rate changes improve the international price competitiveness of firms regardless of their level of mobility”(Weiss, p.75). Tax reduction is another major advantage of globalization. Earlier, countries imposed heavy tariffs on imported products and therefore international business was not profitable. However, with the entry of globalization, free trade agreements have been reached between different countries which encourages cross cultural trade activities. Dharam Ghai (1997), has mentioned that “free market and private enterprise were the principal mechanisms for promoting economic activities in the sphere of economic globalization” (Ghai, p.1). North American Free Trade Agreement (NAFTA) is a good example which shows how effectively a country like Canada increases its trade tie ups through free trade agreements. NAFTA is the largest free trade agreement in the world which links more than 450 million people from countries like America, Canada and Mexico. The total service and goods produced by this agreement worth more than 17 trillion dollar according to some of the recent statistics. All the while the Canadian government is continuously interacting within its primary continental regime, the North American Free Trade Agreement (NAFTA), and has an ongoing, daily involvement in the US capital where every roaming lobbyist and the least expected congressional hiccup can spell trouble for the world's largest dyadic trade relationship. At the same time it works to promote inter-continental liberalization through Asia Pacific Economic Cooperation (APEC) and is an enthusiastic participant in the pre-negotiations of the proposed hemispheric Free Trade Area of the Americas (FTAA) (Clarkson, p.506) “Processes of globalization are generating new feelings of solidarity, political ties, and practices” (Jenson, p.99). It should be noted that blackberry, a Canadian mobile phone product manufactured by RIM (Research In Motion), is currently moving well in Indian and Chinese markets only because of globalization. Earlier, it was difficult for Canadian products to enter in these markets because of political and legal barriers. Globalizing processes can be identified in locations other than major business and financial centers, and involve subjects other than high wage, high skill workers. Call centers exemplify the new ways in which firms are taking advantage of opportunities offered by information and communications technologies to relocate service sector activities (Larner, p.656) There are no life segments at present which are free from the influence of globalization. Globalization affects human life both directly and indirectly. In some areas the effects of globalization would be more visible whereas in other areas it may not be so. The introduction of computers and internet enhanced instant communication which further enhanced the possibilities of globalization. Cross border businesses, outsourcing, offshoring etc like business concepts developed only because of the introduction of globalization and advanced communication technologies. Even though globalization has many supporters, it has many critics also. The major objective of globalization was to help the poor countries in stimulating their economic growth. Poor countries need assistance from the developed countries for mobilization of their resources. Such countries may not have enough technological expertise to exploit their resources and the rich countries can provide technical assistance to such countries to build up infrastructure and to exploit their resources. However, even after decades after the implementation of globalization, some of the poorest countries did not progress as expected. However, this is not because of the defects of globalization. Bad or corrupted governance was the major barrier for such countries in exploiting globalization possibilities. According to Dreher (2003), “those countries with the lowest growth rates are those who did not globalize. Countries like Rwanda or Zimbabwe insulated themselves from the world economy. They have poor institutions which repress growth and promote poverty” (Dreher) One of the major criticisms labeled against globalization is that “it increases the demand for social insurance while simultaneously constraining the ability of governments to respond effectively to that demand” (Rodrik, p.26). Reich (1998) defined globalization as “a process through which events, decisions and activities in one part of the world can come to have a significant consequence for individuals and communities in quite distant parts of the globe (Reich,p.5). Perrons (2004) has pointed out that because of globalization, people and place are increasingly interlinked through the organization of work, the flow of goods and services and the exchange of ideas (Perrons , p.1). Many people are of the view that globalization may destroy indigenous culture and social values. In their opinion, globalization may increase the exchange of goods, culture and manpower between countries which may destroy the cultural heritage and identity of a nation. The above argument seems to be meaningless in countries with good governance. For example, it is difficult to believe that Canadians may imitate Chinese people because of the intrusion of Chinese products and workforce in Canadian market or it is difficult to argue that Chinese products and workforce may bring communism to Canadian soil. Canada is a country in which many of the people from all over the world are working. In fact even before the implementation of globalization, Canada was immigrant’s paradise. People from poor countries immigrate to Canada for better opportunities. However, many sociologists and scholars argue that foreign workers in Canada, especially the domestic workers are suffering profound discrimination because of some controversial state legislative policies. Critics cite this example to label globalization as a curse. Stasiulis and Bakan (1997) have rejected such criticisms and pointed out that “foreign domestic workers in Canada have experienced a condition characteristic of domestic workers internationally, one that continued before, during and after the post-war expansionary period’ (Stasiulis and Bakan, p.121). In other words, it is illogical to put the blame on globalization for the discrimination facing by domestic workers in Canada. To conclude, globalization is a blessing for Canada rather than a curse. Canada is currently enjoying the services of immigrant community which are ready to work for low wages. Canadian products are moving well in international markets at present because of globalization. Free trade agreements like NAFTA help Canada to bargain effectively in global markets. Works Cited 1. Clarkson, Stephen. “The Multi-Level State: Canada in the Semi-Periphery of Both Continentalism and Globalization”. 2001. Review of International Political Economy, Vol. 8, No. 3 (Autumn, 2001), Taylor & Francis, Ltd. Stable URL: . Accessed: 14/07/2011 2. Dreher, Axel. “Does Globalization Affect Growth?”. 2003. Accessed: 14/07/2011 3. Ghai, Dharam. “Economic globalization, institutional change And human security”. Accessed: 14/07/2011 4. Jenson Jane. “Mapping, Naming and Remembering: Globalization at the End of the Twentieth Century”. 1995. Review of International Political Economy, Vol. 2, No. 1 (Winter, 1995), Taylor & Francis, Ltd. Stable URL: .Accessed: 14/07/2011 5. Larner, Wendy. “Globalization, Governmentality and Expertise: Creating a Call Centre Labour Force”. 2002. Review of International Political Economy, Vol. 9, No. 4 (Nov., 2002), Taylor & Francis, Ltd.Stable URL: .Accessed: 14/07/2011 6. Lieber Robert J and Weisberg Ruth E. “Globalization, Culture, and Identities in Crisis”. 2002. International Journal of Politics, Culture, and Society, Vol. 16, No. 2 (Winter, 2002), Published by: Springer Stable URL: .Accessed: 14/07/2011 7. Perrons Diane. “Globalization and Social Change: People and Places in a Divided World”. 2004. Publisher: Routledge; 1 edition, 8. Reich Simon. “What is Globalization?”. 1998. . Accessed: 14/07/2011. 9. Rodrik, Dani. “Sense and Nonsense in the Globalization Debate”. 1997. Published by: Washington post. Newsweek Interactive, LLC. Stable URL: . Accessed: 14/07/2011. 10. Stasiulis Daiva and Bakan Abigail B. “Negotiating Citizenship: The Case of Foreign Domestic Workers in Canada”. 1997. Feminist Review, No. 57, Published by: Palgrave Macmillan Journals. Stable URL: 11. Torres, carlos Alberto. “Globalization, Education, and Citizenship: Solidarity versus Markets?”. 2002. American Educational Research Journal, Vol. 39, No. 2, Education and Democracy(Summer, 2002), American Educational Research Association. Stable URL: .Accessed: 14/07/2011 12. Weiss, Lind. Globalization and National Governance: Antinomy or Interdependence? Review of International Studies, Vol. 25 Published by: Cambridge University Press. Stable URL: . Accessed: 14/07/2011 Read More