CUE 101 Term Paper: Globalization and the Canadian Economy

This report analyzes the effects of globalization on the Canadian economy. It begins by exploring the positive impacts, such as increased international trade and integration with the United States. The report then delves into the negative consequences, including income inequality, and the influence of anti-globalization sentiments and policies. The paper also discusses the impact of globalization on various aspects of the Canadian economy, including the potential for job losses, changes in consumption patterns, and the role of transnational companies. The report considers multiple perspectives, referencing various academic sources to support its claims and provide a balanced overview of the complex relationship between globalization and the Canadian economy.

Running head: GLOBALIZATION IMPACT ON CANADIAN ECONOMY
Globalization Impact on Canadian Economy
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1GLOBALIZATION IMPACT ON CANADIAN ECONOMY
Thesis Statement:
The purpose of this paper is to determine what the effects of globalization on the
Canadian economy are. The first part will address claims made by literature materials that
support the argument that there has been positive change in the economy, the second part will
then address the literature that says that there were negative impacts and the last argument
will focus on the claim that there were no changes in the economy in Canada caused by
globalisation.
Introduction:
The concept of Globalization is referring to the integration and interdependence of the
people in a country with the relationship with other countries in the world. Canada, similar to
the majority of the industrialized countries, is more interconnected than ever and their culture
remains very closely tied to the culture in the United States. Canada has a highly advanced
system of information systems and communications technology and its government has a
strong foothold in international organizations with their economy being actively in trade and
also a population that frequently travels abroad along with a population that is culturally
diverse. The Canadian economy has heavily relied on their external markets since the 17th
century. Prosperity of the economy depended on the export of the natural resources present in
Canada along with the import of various manufactured goods. The first section will focus on
the positive impact of globalisation on Canada, followed by the negative and then finally,
claims that there was no change in the economy.
1. Globalisation positively impacted Canadian Economy:
In the paper called Globalisation Impacts on Canada and on the Canadian Context,
the author mentions that the country of Canada is stuck between adapting the new and

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getting over the old, especially because they share the world’s longest undefended border
with United States who is also their biggest trade partner. This relationship has brought
them many advantages, and that is why the Canadian economy has decided to move
forward with this concept to the next century (Lloyd, 2016).
Lloyd, Douglas & Krista MacDonald, Anne. (2016). Thoughts on globalisation in Canada.
The second article which is by Harry Arthur’s points out that the impact of
globalisation will have different effects when associated with the different corporate
activities it is in relations to. It is also mentioned that the presence of transnational
companies is what made globalisation a possibility. Canada has a unique form of
localised globalisation which makes it easier for transnational companies to treat their
subsidiaries present in other countries as an integral part of their business in the home
country.
Arthurs, H. W. (2018). The hollowing out of corporate Canada?. In Globalizing Institutions (pp.
29-51). Routledge.
In the paper by Christine Lagarde (2016), she mentions that Canada’s international
trade makes up for almost two-thirds of their GDP which means that the country is
heavily reliant on their global relationships to make their country prosper. She also
mentions in the article that Canada has been experiencing the most benefits from
migration of people into its country.
Lagarde, C. (2016). Making globalization work for all. International Monetary Fund.
2. Globalisation negatively impacted Canadian Economy:
In the address by Mark Carney who is the former Governor of the Bank of Canada, he
mentions that there are many spill overs of various policies onto the economy of Canada
relating to the promotion of export-related activities. A recent analysis has suggested that

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Canadian firms have not yet exploited the opportunities they have received from the Asian
supply chains.
Carney, M. (2008). The Implications of Globalization for the Economy and Public Policy.
Retrieved from https://www.bankofcanada.ca/wp-content/uploads/2010/02/sp08-2.pdf
The paper on Globesity (Costa-Font, 2014) outlines the effect of globalisation on the
economic and social dimensions of the calorie intake of the population in the country. With
globalisation causing a decline in the relative prices of food, it has resulted in an overall
increase in consumption of food by the people. With increases in obesity rates, it increases
inequality in the income earned because it has been found that there is an inverse relationship
with social class and obesity. It was also found that obesity prevents people from getting jobs
which increases unemployment in the economy of the country.
Costa-Font, J., & Mas, N. (2016). ‘Globesity’? The effects of globalization on obesity and caloric
intake. Food Policy, 64, 121-132.
The article by Inmee Baek and Qichao Shi (2016), it is mentioned that increasing
globalisation is causing an upward trend in the income inequality present among the
population in the country. This is to be caused mainly because of the open-door economic
policy that countries like Canada have implemented regarding their trade. Even though the
predictive trend from globalisation would be to decreasing income inequality, however the
result gotten from countries like Canada make the usefulness of globalisation controversial.
Baek, I., & Shi, Q. (2016). Impact of Economic Globalization on Income Inequality: Developed
Economies vs Emerging Economies. Global Economy Journal, 16(1), 49-61.
3. Effects of Anti-Globalization in Canada:
The article by Evan Hillebrand states that if globalisation were to stop or go backwards, it
will have profound negative impacts on many countries and the income groups that reside in

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those countries. The paper also states that there are chances of protectionism causing
improved income equality among the different income groups, but it will also end up
reducing the incomes of both the rich and the poor people.
Hillebrand, E. E. (2010). Deglobalization scenarios: who wins? Who loses?. Global Economy
Journal, 10(2).
The paper by Dr Awan on the rise of the wave of anti-globalisation and its effect on the
world economy states that world trade is slowing down because the world is slowly moving
towards protectionism policies. This is because in countries like Canada, the top income
earners account for only 4-5% of the population and the benefits of the growth experienced
from globalisation is not being felt by everyone in the economy because the lower income
households are still falling behind.
Awan, A. G. (2016). Wave of Anti-Globalization and Capitalism and its impact on World
Economy. Global Journal of Management and Social Sciences, 2(4), 1-21.
The paper by Farok Contractor highlights the growing intention of world leaders to put
their countries first and an overall hostility towards global trade and a distrust in immigrants
which means that the countries are now moving towards more protectionist policies. In richer
countries like Canada, globalisation has been accused of causing losses in employment along
with a stagnation of the country’s economy.
Contractor, F. J. (2017). Global leadership in an era of growing nationalism, protectionism, and
anti-globalization.
Conclusion:
Globalisation has long been one of the best solutions for a country to get themselves
to be in the same ball game as other countries, and enabling a healthy exchange of culture and
fortune among the countries. However, after so many years that globalisation has been a

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positive topic, it is necessary for researchers to look at it in a more objective way and
determine what negative impacts it has been causing. It is then the responsibility of the reader
to determine their opinion on globalisation, and since the effects are different for each
country, if it is good for one’s country or not.