ENG 103: Globalization Impact on the Canadian Economy

This essay analyzes the multifaceted impacts of globalization on the economy, focusing on both positive and negative consequences. It explores how globalization affects a country's GDP, emphasizing the roles of migration and tourism in economic growth. The essay also examines the influence of transnational companies, detailing their contributions to globalization, including increased profits, employment opportunities, and technological advancements. Furthermore, it investigates trade benefits arising from increased competition and consumer access to a wider range of products. However, the essay also acknowledges potential downsides, such as the impact on consumer health and the rise of obesity due to changes in food consumption patterns. The essay concludes by summarizing the overall effects of globalization on economic development and international relations.

Running head: GLOBALIZATION IMPACT ON ECONOMY
Globalization impact on Economy
Name of the Student:
Name of the University:
Authors note:

1GLOBALIZATION IMPACT ON ECONOMY
Globalisation is an ongoing process; it makes businesses management easier and
efficient for the companies. Globalisation brings the world economy together. The prime
function of globalisation is to provide the customers with products that are available
worldwide. It refers to the integration and interdependence of the citizen of different
countries on each other (Krugman, 2017, pp. 7). There are several impacts of globalisation on
the business; it can be negative as well as positive. As Canada is similar to the other
industrialized countries, its cultures remains very closed to the culture of United States.
Canada is quite advanced in the information technology and the ratio of migrants is in large
number to Canada that has helped in the development of the economy of Canada. Several
factors that contribute to the development of the economy of the country that will be
explained in the report in detail. Apart from that, the positive and negative impacts of
globalisation in the country’s GDP, transitional companies and trades worldwide are
mentioned in the report.
There are people who migrate to other countries for pursuing better education and jobs
that can satisfy their need. The prime reason of migration is earning for better living. People
migrate to Canada to seek their higher education and settles down there for their jobs. This
benefits the economy of Canada as the student those who migrate to pursue their education
provide much larger economy compared to the people of Canada; in fact, the international
students are the main sources of income in Canada. In the words of Chira, from among the
students 11% are international student who are enrolled in the colleges and University of
Canada. After the completion of their education, some of them establish their businesses and
some pursue jobs (CHIRA, 2017, pp. 6). These people are the major taxpayers of the country.
Tourism plays a vital role in the increase in the economy of the country. Tourism
increases the connectivity between two countries. Tourism is the way people from different
countries visit different part of the world in order to meet new people, visit historical sites

2GLOBALIZATION IMPACT ON ECONOMY
and to explore. Tourism not only helps in the increase in the economy but also in developing
a great relationship with other countries. In fact, there are tourists who decide to expand their
business or think to start their businesses after they visit the country. (Arthurs, H. W. 2018,
pp. 32). Tourist also help in solving issues between countries, for instance, there may be
political issues between two countries but with the increase in the tourist between the two
countries may solve the differences (Lloyd et al., 2016, pp. 4-5).
Often the companies try to establish businesses in countries where resources are easily
available and expansion of business is easy. This is a major element of globalisation as it
helps in the increase of the economy of both the countries (Wells, K. L. H. 2018, pp. 27). The
prime purpose of the company is to increase their profit as well as sales. This helps in solving
the issue of unemployment in the country where the business is based. Moreover, with the
increase in the income there is also an increase in the lifestyle of the people (Škrbić et al.,
2015) Establishing business abroad helps in the cutting down of heavy taxation. The host
country also enjoys the benefit of cutting down competitors as the competitor try to produce
better products and there is a chance in the increase in the competition.
The effect is different for corporate activities is different. However, the presence of
transnational companies are the reason of globalisation. The transnational companies help in
the development of the company as well as the countries to which is established. It helps in
the destruction of the local competitors and increases the globalisation rapidly with
advertisement. Advertisement plays a vital role for the transnational companies, as it is the
prime medium, which makes it reachable to the customers. These companies divide their
labours into the nations in order to show high productive rate. They also uses advanced

3GLOBALIZATION IMPACT ON ECONOMY
technology for more production, which helps in attracting foreign investors (Arthurs, 2018).
As a result, there is an increase in the profit of the company.
Various multinational companies make the home country the integral part of the business.
The reason is a large sum of economy is drawn to the country from other countries enabling
the country to be economically strong. More profit for country (Wells, 2018). When the home
company is the integral part of the business, there is a large amount of employees required
with which the unemployment of the country decreases. This also helps in stable income as
policies and laws of several other companies may change occasionally or there may be
changes in the taxation policy but being a local company in the home country will enable
stable income. This also directly or indirectly helps in the improvement of the education and
skills of the country (Renzaho, 2016, pp.5). Use of natural local resources reduces the price
of the product allowing more amount of profit. There are available investors in the local
areas, as investors often do not trust to invest in foreign businesses.
The transnational companies help in the country with a large number of economy. A large
sum is being invested that is benefited for the country. The transnational companies benefits
the home country the most. The company benefits the home companies with a large revenue.
The companies bring the fees, charges, royalties and the profits to the home country. Apart
from that, the huge inflow of the foreign exchange also helps in the increase of the economy
of the company (Guo & Chase, 2011). There are other benefits like there are several
countries, which are highly advanced in technology, from where these countries can hire
technology for their countries. Thus, benefitting in the increase in the advancement of the
technology of the country.
Developing countries with a huge quantity of resources are the countries where the
companies tries to establish their manufacturing industries. The availability of the raw

4GLOBALIZATION IMPACT ON ECONOMY
materials makes it easier for the companies to transport products if the company
manufactures in the same country. Moreover, the products are also available in very
reasonable price thus the bargaining power of suppliers’ remains low. However, this
increases the competition of other companies to set up their business in the same country
(MUKHERJEE, 2016, pp. 6). For instance, India has a huge human resource and establishing
a garment industry in India will be beneficial as there is a large amount of raw materials
available at a cheap price and employees can be hired at a low price, as the rate of
unemployment is high. This will help in the increase in the globalisation of the country
though increasing the level of competition in market.
With the increase of companies in the market, there will be increase in the
competition among the companies. This will lead to the production of good qualities of
product and the pricing will also be very pocket friendly for the customers as there will be
a large number of variety for the customers. There is also a chance that the companies
either decrease the price of the product or provide a more valuable product (Renzaho,
2016, pp. 5). Apart from that, companies will try to introduce products, which are updated
to attract more number of customer.
The customers with globalisation enjoy various benefits such as large number of products
are available to them from various parts of the world. In fact, globalisation aims to make
products available for everyone worldwide. Consumers get good products with very
minimum value because of globalisation.
However, there are also negative impact of globalisation (Guo & Chase, 2011). With the
decrease in the price of the products, there is increase in the consumption of the products by
the consumers. The same happens in the case of food, the price remains low whereas the
quality is good. People thus, with the increase in the lifestyle start to consume more and more

5GLOBALIZATION IMPACT ON ECONOMY
food especially fast food, junk food, processed food leading to obesity. Obesity is a serious
issue in this era and this is the reason of several chronic diseases. Obesity makes people
sluggish and this leads to no working, thus, decreasing the quantity of employees. As a result,
the economy of the country starts to be hampered.
Thus, it can be concluded that there are several benefits of globalisation that are being
enjoyed by the companies, consumers as well as the countries. Globalisation has a great
impact on the economy of the country. Globalisation is reason that helps in the increase in the
economy of the company. It helps in the increase in the GDP of the country as well as in
trading in other countries. There are also several disadvantages of globalisation too.

6GLOBALIZATION IMPACT ON ECONOMY
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