Essay Sample on Effects of Globalization to the Well-Being of Canada

Historically, Canadian policy has dallied between having close economic ties with the United States and other countries and keeping a safe distance. The economic ties are somewhat peaceful, but the issue of Canadian sovereignty threat has led to quite a debate. The economic ties began with Free Trade Agreement with the US which letter extended to Mexico (Taylor & Foster, 2015). Globalization can be multilateral under World Trade Organization or locally through the European Union. This paper aims to look into the effects of globalization on the citizens of Canada.

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First, there are major benefits brought about by globalization increased stability being one of them. This was brought by the important bilateral regime more precisely in trade and financial investment. This leads to lower transaction costs and minimal uncertainty (Wild, 2015). Another positive effect is productivity since larger US market and markets of other countries lead to productivity upgrading due to competition. Standards of living have greatly improved since Canadians gain access to jobs in other countries due to free trade. They can also access cheaper goods than their locally produced expensive goods.

Secondly, the negative effects of globalization on Canadas well-being are the dependence on other countries especially the US which can politically manipulate them when the need arises. Canadas special status is in threat since an attempt to lock out bigger markets like the U.S has proved futile (Carmel, 2013). This is as a result of it being a small country next to a superpower. A good example is Ontarios GDP being dependent on exports from the US (Wild, 2015). There is the issue of investment mechanism where environmentalist have raised concerns about amending domestic environment law. Investment claws are contentious because the reasons it being drawn up were to guard corporation from backdoor trade protectionists and subjective regulations which in the end have led to the collapse of many businesses and investments (Labonte et al., 2015). Free trade also leads to unemployment since cheap labor is serviced from foreign citizens.

Seeing both sides, in as much as globalization has advantageous effects, the negatives overshadow the positives. Globalization has brought about decreased GDP and unemployment plus many other effects which lead to serious harm to Canada's economy.

Reference,

Carmel, S. M. (2013). Globalization, security, and economic well-being. Naval War College Review, 66(1), 41.

Labonte, R., Cobbett, E., Orsini, M., Spitzer, D., Schrecker, T., & Ruckert, A. (2015). Globalization and the health of Canadians: Having a job is the most important thing. Globalization and Health, 11(1), 19.

Taylor, A., & Foster, J. (2015). Migrant Workers and the Problem of Social Cohesion in Canada. Journal of International Migration and Integration, 16(1), 153172.

Wild, J & Wild, K. (20150. International Business; The Challenge of Globalization.8th ed. pon Mills, Ontario Pearson Education