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Globalization and Unemployment in Canada

Traditionally, Canadians have lived in relative isolation that resulted in paternalistic government policies, protection of historical and market-established habits and experience of both individuals and businesses. Old economic order was a system that ensures high standard of living to a significant portion of the population. However, this order led to a weakening of incentives for continued development of the economy. Increased globalization and the sphere of trade and investments, the progress of information technology, constantly developing countries and strategies of firms pose a significant threat to the competitiveness of Canadian exports.

Globalization is the process of global economic, political, cultural and religious integration and unification. Long before the word globalization became popular, Canadians were for the benefits of globalization, because the main issue was trade in the 19th and 20th centuries. At the end of the 20th century, globalization became a negative issue. An anti-globalization movement was spread among Canadians. Supporters of globalization say that international trade and investment provide benefits to both poor and rich countries. As an example they provide Taiwan, South Korea, Hong Kong, and Singapore that were open towards international economy and have seen higher rates in growth than those places that shut down themselves from the rest of the world. As for Canada, it has become more independent on international trade after Second World War, however most of the trade was with the U.S, and not with the rest of the world.

Over the past ten years, Canada’s economy has developed steadily. Real economic growth was the second after Japan among industrialized countries; the country also held the second place after the U.S. in terms of employment growth. However, despite this, there is strong evidence that the country is experiencing economic difficulties which hinder the growth of people’s welfare. One of such economic problems is unemployment rate, which is higher than in other developed countries, while in recent years the average duration of unemployment has increased.

Canada’s economy is focused on the production and is highly dependent on exports of raw materials, the main type of which is oil. None of the world’s leading exporters can normally exist when there is a significant drop in oil prices. Thus, since the 1930s of the 20th century, the first time since the global economic crisis, there are negative trends, including the increase in unemployment, which results in a slowdown in economic growth of the country as a whole.

Traditionally, Canadians have lived in relative isolation that resulted in paternalistic government policies, protection of historical and market-established habits and experience of both individuals and businesses. Old economic order was a system that ensures high standard of living to a significant portion of the population.

Assignment ID
100000834
Type
CREATED ON
31 July 2016
COMPLETED ON
2 August 2016
Price
$10
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