Globalization is the increasing interdependence of states, economies and societies throughout the world. Technology and improved transportation have increased levels of trade, mobility of people and capital. Canada and the United States (US) have a history of specific trade agreements prior to their 1989 Free Trade Agreement (FTA). Since 1994, Canada, the United States and Mexico trade under the North American Free Trade Agreement (NAFTA). In addition to NAFTA, Canada has entered into several other free trade agreements with other nations. Despite Canada’s increased market of free trade, Canada currently remains in a dependent relationship with the United States because the US is, at present, Canada’s primary destination for its most valuable exports. …show more content…
Over 75% of Canada’s exports go to the United States accounting for over one-quarter of Canada’s total GDP (Brooks, 2012). Canada’s largest exports to the United States are crude oil and automobiles. In 2015, Canada traded approximately $400 billion globally; $310 billion was traded with the US. The main advantage of trading with our neighbor is profit. Due to Canada’s geographical location to the US, it costs less to transport goods from Canada to the US than it does to other countries. Geographical location has enable Canada to become very dependent on the exports of oil and automobiles to the US.
Ontario and Alberta’s economy rely on the numerous jobs created around auto manufacturing and oil procurement. Canada exports vehicles with Mexico and Germany but trade to the US is in billions whereas Mexico and Germany only amount to millions. (Top Canadian Exports). Dependency on the US importing automobiles from Canada may not
Despite of trump’s decision to rescind the north america free trade agreement that would cause pain to american businesses and workers, US-canada free trade deal goes back into effect. Thirty five american states,most in the northeastern industrial belt, have canada as their largest export market.canada has not been on trumps trade radar in the past. American economic self interest dictates its commerce with canada remain unencumbered. It follows that international corporations looking for a toehold in north america may soon find canada a useful port of call. Trump is also supporting canada in building keystone XL pipeline as that is considered to be a cleaner and safer mode of transporting crude than rail.
However, most of the oil imports to the U.S. come from Canada, Saudi Arabia, Mexico, Venezuela, and Nigeria. The Organization of the Petroleum Exporting Countries or OPEC is part of where the Unites States imports their oil. OPEC countries only produce a small portion of American oil; the U.S. obtains most of its oil from Mexico and Canada. However, over the years Canadian oil production has risen while Mexico’s has fallen. It is obvious that it would be better to have a reliable, long-term supply of crude from Canada than rely on overseas suppliers, whether they are part of OPEC or not.
This has a lot to do with the price of oil and their is a trade deficit of 3.3 cent per domestic product . Some may argue however that many other countries are far behind in terms of overall economics compared to Canada. The Canada act of 1982 is an act of the Parliament of the United Kingdom that was passed at the request of the Canadian federal government to "patriate" Canada's constitution, ending the necessity for the country to request certain types of amendments to the Constitution of Canada to be made by the British parliament . Canada technically had it’s independence on July 01, 1867 but still was under the British parliament which left a lot of their money going to Britain.
Is Globalization Good for Canada? Think about where Canada would be developmentally without globalization; in a state of thriving, or barely surviving? The answer, Canada would be barely surviving without globalization. This is because Canada would not have ties to other countries, therefore putting itself at risk of being invaded and taken over. So, globalization is good for Canada because it increases business, created the World Wide Web (WWW), and created free trade.
“By 1988 three-quarters of Canadian trade was already with the United States” (White 1994). By the time negotiations concerning NAFTA commenced in 1990, proponents of the aforementioned Free Trade Agreement (FTA) were witnessing some of the many beneficial effects that compelled them to lobby for such an agreement. The bilateral trade deal between Canada and United States, was the engine starter for much of the shared substantial economic growth that occurred between 1989 until 2002. Throughout this period of growth “Canadian exports to the United States rose by 221%” (Lessons From NAFTA). The sub sequential growth that was initially sparked by the FTA paved the way for NAFTA sympathizers and proponents as means to promote this unprecedented trilateral trade agreement.
Over the last four decades Neoliberal policies have generated issues such as social inequalities, discrimination, and an increase in poverty, that have affected the lives of many individuals on a global scale. These repercussions were the result of a Neoliberal agenda that aimed to maintain economic growth with social reproduction. After World War II, a welfare state was established which contributed to the growth of the GDP in the United States until the economic recession in the 1970’s. In response to the economic crisis in the 20th century, Neoliberal elites aimed to stimulate economic growth by limiting welfare and lowering labor costs which increased poverty, precipitated discrimination towards people of color, and created an unfair justice
Foreign oil dependency is a major topic that is hotly debated in US politics. The United States relies on imported oil for about 40% (in 2012) of petroleum consumed and is the world’s largest consumer of oil. About 53% of the foreign oil imported is from other Western nations such as Canada, Mexico and Brazil. 28% is from the Persian Gulf, 16% from Africa and the remaining from other areas of the world. Canada is currently the leading crude oil supplier to the US. Some believe that importing oil has benefits to our economy, while others believe it is a security threat.
Globalization has impacted the poor from others parts of the world just the same as it has in our home, Canada. Opening the doors of international trade has given birth to intense competition. Therefore, our local markets (e.g. Zellers) have been affected dramatically. In recent times the standard of living has improved. Many Canadians are therefore ready to shell out extra money for a product that may be available at a lower price.
Pierre Trudeau once said, “Living next to you (the United States) is in some ways like sleeping with an elephant. No matter how friendly and even-tempered is the beast, if I can call it that, one is affected by every twitch and grunt.” This saying gives a deep understanding of what Canada’s relationship with the States was like. The U.S. is a country that has flourished throughout history and Canada was right behind. The U.S has almost 10 times more the population than Canada. So, Canada has depended on the U.S for simple things such as getting tourists from them to visit Canada. It is evident that Canada’s dependence on the U.S, was higher than America’s dependence on Canada.
Globalization Effects Canadian Immigration Interest is the driving force of human society. Immigrants in Canada were used to face huge discrimination from the major population groups in the past. However, there was a giant change to this situation in the last decades. It is unrealistic to say that such a difference is so short time on the attitude towards the immigrants was simply caused by the reflection of the society.
Enbridge estimates that 99% of the crude oil from Alberta is transported to the United States. Currently though, America 's demand for imported oil is decreasing (AsiaPacific.ca/Canadian Oil), as oil-exploitation in the
Globalization has reached the Canadian land through many ways, such as the global trade, technological advancement, investments, and the immigration, and it has affected the political, economic and social aspects of the Canadians.
Globalization can be defined as the movement towards economic, financial, trade and communications integration, allowing for a state of global interconnectedness. Globalization affects all countries in different ways. Globalization has had a positive impact on Canada. The Canadian economy has grown, international conflicts are becoming less prevalent, Canadian tourism has increased, Canadians have seen an unprecedented rate of cultural integration, even the life expectancy of Canadian citizens is due in part to the effects of Globalization. Canada has benefited greatly due to Globalization and this phenomenon will continue to impact Canada for the rest of time, until the world reaches the state of Globality.
Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across
Canada has established a clear goal towards helping businesses have long-term relationships & growth internationally and to save money. Mainly focusing on negotiating better rules/policies that will work alongside local manufacturing and exporting organizations in Canada and around the world. Canada has become willing to aim their business intentions towards working with the WTO and other countries, in efforts to overcome their global presence issues. The “Free Trade Agreement” helps Canada’s exporter and manufacturer gain a competitive advantage globally (with Europe, Latin America and other countries) by exposing them to new customers and investment opportunities (resulting in greater sales numbers). Constant focus on building a