Canada and the New Global Economy - Essay Example

Reforming tax and regulatory policy in Canada Canada is undergoing many economic changes. There is need to put in placea suitable policy to make sure it compete efficiently on global level. The world has changed tremendously which requires development in the growing economies. Demand for more commodities is on the rise. In addition, new technologies are being used all over the world aimed improving worlds economy. For the past few years, Canada has been one of the most celebrated economies of the world especially in resources sector.

She has been very competitive in manufacturing industry but times have changed and there is need for Canadian economy to follow suit. Canadians are working people and they are ready to revamp their falling economy. In order to improve her productivity, financial capital must be accessible since for there to be high production, Canadians need to have modern technology (Seven Hills Publishers 56-61). Canadian companies are willing to move to that direction of high productivity only if they access cost efficient capital to help them become more productive.

The cost of financial capital in Canada is too high, which has caused a great financial problem especially among small businesses. Canadian companies should try to secure a place in global markets, which in turn will earn the country opportunity to expand in terms of her telecommunications, resources, and environmental technologies. Small companies and business account for a larger employment percentage in local economy. According to Carnoy (72), global markets aids in expanding these opportunities in the world economy.

Such moves gives countries like Canada an opportunity to expand. For Canada to succeed in her economy, she must revise her tax and regulatory policies. For instance, federal tax is too high, which suppresses many small businesses. When these small companies start to expand, tax increase, which makes them, disappear from market. Canada should adopt tax system that does not discourage financial capital expenditures. Not only is the taxation system killing the development and growth of her economy but also there is need to review the regulatory system for Canadian markets.

There is urgent need to establish a regulatory system that is suitable for Canadian future (Ingrid 45-51). The Canadian administrators and securities have tried to provide a common ground for all securities regulators to work in unison. For example, the passport system in Canada, which all the provinces have adopted, provides an opportunity for dealer and dealer registration. Such common regulation has reduced the costs as Canadians issuers and intermediaries pay once for the same rewards or benefits.

It has reduced many costs including the compliance costs, which has allowed private businesses to comply with only one rulebook. The regulatory system has helped in responding to changing market conditions globally thereby providing a leeway for the companies to explore new markets internationally (Brecher 66). Tax and regulatory policies are essential in capital markets all over the world, as they will give companies chances to expand and explore international markets. In addition, the federal government should encourage investment in Canada, which must be supported by its tax and regulatory system.

Canada’s economic future is directly linked to our international access. It is directly related to our engaging the new global economy (Hart 46-48). A new economy that is defined by well-paid and highly skilled employees who manufacture highly engineered products, often using computer assisted equipment. Products that are destined for international markets. Works Cited Barrow, William. Globalization, Trade Liberalization and Higher Education in Canada. The Emergency of New Markets. Chicago: Springer, 2003. Print. Brecher, Jeremy & Costello, Tim.

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Canada in the New Global Economy. Problems and Policies. New York: John Wiley and Sons, 1994. Print. Seven Hills Publisher. Canada East. Ontario: Nelles Verlag, 1999. Print. Taylor, Kenneth. 21st Century Economics: Perspectives of Socioeconomics for a Changing World. New York: Palgrave Macmillan, 1999. Print. Urmetzer, Peter. From Free Trade to Forced Trade: Canada in the Global Economy. Ontario: Penguin Canada, 2003. Print. Wiseman, John. Power in the Global Era: Grounding Globalization.

New York: Palgrave Macmillan, 2000. Print.