Drivers of Globalization

Topics: International trade, International economics, Globalization Pages: 7 (2325 words) Published: March 9, 2013
Canadian Policies to Encourage Globalization

Canada strives to have a strong economy: to be productive and provide gainful employment for the citizens. In order to do this Canada has to adapt and change. In the past Canada was largely industrial, and production driven. Nowadays, Canada’s economy depends on a strong service sector and being active in a global market to stay strong; especially when economic conditions within Canada are tough. The Canadian government has been implementing a variety of policies to help encourage globalization in order to keep the economy healthy, and to be part of the global market. By freeing trade, improving international intellectual property rights, boosting an inflow of foreign investments and reducing currency barriers, different policies have been encouraging globalization and improving Canada’s economy.

There are a wide variety of trade agreements between Canada and other countries that are making it easier for a global market to be efficient. One example of how Canada is currently trying to encourage globalization by freeing trade is with the trade agreement in process of development between India and Canada. The new agreement will eliminate or reduce tariffs on Canadian goods in a variety of sectors. It is believed that the trade agreement would provide a 6 billion dollar increase into Canada’s economy. (Harper, 2012) This new policy would also help Canada’s economy by providing almost 40,000 new jobs in Canada. (Harper, 2012) Creating new policies that make it easier for businesses to work with each other in different countries, and expand their customer base helps to strengthen the global market. The Canadian government is actively encouraging globalization, Minister of International Trade and Minister for the Asia-Pacific Gateway, Ed Fast said “The Harper government is committed to building on these strong ties to create a partnership that will lead to new opportunities and stronger economies in both countries.” (Harper, 2012) The Harper government has, in the last 6 years, concluded nine trade agreements, and has begun improving the trade and investments with large markets such as China, the European Union, Brazil and Japan. (Harper, 2012) Once complete, this agreement will provide great opportunities for Canadian companies to expand their markets into large rich countries. It is a perfect example of how Canada is currently encouraging globalization.

One new policy already in place is the trade agreement between Canada and Jordan. This is another example supporting the argument that Canada is encouraging globalization through freeing trade. On June 29, 2012 the Canadian-Jordan Economic Growth and Prosperity Act became legal. (Canada-Jordan, 2012) This agreement completely eliminated any tariffs. Once again, the gains from this agreement include increased economic activity and gainful employment for people throughout both Canada and Jordan. It was said that this agreement is just one step in Canada’s “job-creating, pro-trade plan to protect and strengthen the prosperity of workers and businesses in every region of Canada.” (Canada-Jordan, 2012) It is clear that one of Canada’s main objectives is to improve the global market with the objective of improving the economy within Canada. Even though this agreement will result in smaller gains than the Canada-India agreement, it would still able it to show the significance that Canada puts on reducing trade barriers and creating and taking part in a global marketplace.

Sometimes even with the reduction of trade barriers, there are other issues that make businesses uncomfortable with conducting their business in other countries. For example, when it comes to intellectual property, businesses need to be very careful about protecting their valuables. Whether it is protecting certain software, or a secret recipe, intangible items can be extremely sensitive when shared and not protected. This has been a huge issue for some...
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