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How Does Globalization Affect Canada

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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

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