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Category: Social Issues
Autor: anton 04 April 2011
Words: 1151 | Pages: 5
Globalization and its effect on Canada
1. Canada has many large Transnational Companies, most notably Northern Telecom (Nortel), Magna International, Nova Corporation and International Nickel to name a few. These TNCâ€™s have different operations in many parts of the world that look after the design, engineering, development, marketing, testing and manufacturing of its products and services.
In order to compete in todayâ€™s competitive global environment, Canadian companies have always tried to identify where their products and services can be produced or serviced at the lowest cost, while maintaining a high standard of quality and professionalism. Keeping cost expenditures to a minimum ultimately benefits these companies as demand for their products and services increases, producing increased sales and profits. This benefits the company, its employees, shareholders, the local government and the Canadian economy.
In the twenty-first century, technology has played a major role in the globalization of business. The Internet, web-conferencing, computers, high speed telecom equipment and even your basic fax machine has transformed the way businesses think about potential clients. For example, the advent of computers have quickly given rise to the internet and the internet is a communication technology which allows us to send e-mails and read articles instantaneously. This information is at our fingertips and allows us to make more informed decisions about how and where the business opportunities are located.With the new technology tools and the companies thinking more global, this has opened up many new job opportunities for itâ€™s citizens who work inside Canada and who work abroad.
With globalization, low paying labour jobs will generally go to other countries such as China. However, jobs requiring higher education and skill sets will remain in Canada. Product innovation and development will tend to stay in Canada, creating better paying jobs and contributing to the Canadian economy. This will also help in developing new technologies since the development is done in Canada.
Search studies from some of the top universities in the country have warned that if transnational companies decide to cut back their foreign expenditures and investment, and soley concentrate on their home market, sooner or later (much sooner) they will become uncompetitive and eventually will go out of business. Many companies have invested large amounts of capital in fast growing developing countries such as Mexico, China and India, allowing them to grow and enter relatively new and untapped markets. Studies have shown that having your whole workforce in your home country (in this case, Canada) the companies cost to produce the products and services for their customers would be too high and out priced by itâ€™s competition. Less sales for the company translates to less profits, which translates to a smaller GDP and in the long run, less jobs for Canadians.
2. The negative effects of globalization on the lives of people in other countries need to be part of the decision-making process.
Canadian TNCâ€™s must always factor in the impact globalization has on people and the countries that they operate and serve. Social responsibility issues such as the environment, human rights and exploitation of workers all should be factored in before a company makes an investment in a foreign operation. Companies also have a responsibility to look at the bigger picture and forecast the benefits to the locals, the tribes and the country in general. If it is determined that there is a positive impact, then it is their duty to expand in those areas.
3. The advent of the new economy could not be made possible without the arrival of computers and the advancements in computer technology. Technology has a great importance in a developing economy and has produce many advantages. Information has become a very important factor in businesses. Communication is very necessary in the successful operation of organizations. It is hard to imagine the world without computers. As a result of new technologies, especially in the past years, our modern society has been introduced to different ways of communication through the computers. Some of these ways include the Internet and Email. Computers can communicate using modems and telephone lines as easily as if they were sitting side by side connected to each other directly. Of course, this modern way of communicating with others would not be possible if computers did not exist.
Some of the advantages include:
1. Time - Through the email we now have the ability to communicate with anybody throughout the world in matter of minutes. Time is a great factor for everyone, especially in businesses when employees have to do certain tasks in a certain amount of time. Computer technology saves a lot of time. By email, we can send our information anywhere around the world within few minutes.
2. Convenience - Nowadays, we do not need to go out of our own homes to shop for
clothing, furniture and other needs. All we have to do is turn on the computer and
sign on to the internet and we can order online.With technological advancement
in transportation alone gives business the ability to move products globally faster
with the latest developments in cars, trains, trucks, planes, and ship. Plus many
other modes of communication and transportation, which all are based on
computer technology innovations. All these innovations have made long distances
short and it has also made communications easier. Companies can keep in touch with other international companies and their customers. Customers can search the products on the internet which is the most convenient way for the customers to buy and for the sellers to sell their products. We can transfer money electronically and the list of convenience continues to add.
Some of the disadvantages include:
1. Currency Fluctuations - When large number of companies transfer money to other countries, the local currency will fall, therefore making imports more expensive for other Canadians and business.
2. Interest Rate - In order to control currency falls, interest rates generally need to be increased to encourage foreign investors to bring their money to Canada.
3. Job Loss - Since money can be transferred easily to other Countries, labour intense manufacturing jobs can be transferred to other countries quickly.