Thursday 29 March 2012

Globalization in Canadian focus

Globalization is a common phenomenon in the 21st century enterprise world. It brings with it both advantages and challenges to local industries. Globalization has created more opportunities while posing pressures to a number of firms that have not fully adopted innovative modes of conducting business (James 211). Companies have reacted differently to globalization, and being driven by a sole aim of making profits have aligned themselves to sound innovation to improve their competitive standing. The research paper is looking to explain the cultural, economic and technological advantages of globalization to Canada.

With the removal of trade tariffs and other protectionism measures, globalization has brought growth avenues and challenges for the local companies with the urgent need to embrace innovation to survive and thrive in the industry. Globalization is a term used to imply the increased nature of economic openness to increase relationships and businesses between countries (Roger and Berdahl 129). Most economic experts have often criticized protectionist measures applied by a number of countries to regulate the level of economic activities in their country. Due to sound reviews and international pressures, most economies have softened their previous stand to embrace globalization. Despite facing many challenges, globalization benefits have often been exaggerated with the minimalism of its disadvantages. In the contemporary society, little has been paid to the effects of globalizations in the domestic industries. However, its impacts to productive firms have captured a considerable attention from both policy makers and governments. Policy makers presume innovation to be a core factor of globalization that affects productivity of firms. To thrive in both local and international markets, companies need to adopt sound innovations that improve both the quality and quantity of their product. To achieve this, a firm needs to harness and use news ideas and methods in its operations. Innovation influence is widespread in economies and business industry alike. These innovations range from steel cars to creating a locomotive. In both the traditional and electronic businesses, innovation is considered a growth catalyst. This implies that companies that have adopted new technologies have an upper hand when it comes to competition in the industry (Roger and Berdahl 178).

According to economists, competition between firms, production efficiency and technology are important aspects that enhance economic growth of a nation (Peter 54). In accordance to this view, globalization advocates for industry competition and individual firm innovation to thrive an industry. Adoption of new technologies has often been associated with large firms. There is a common believe that large firms are important forces of progress that dictate the technology to be adopted in an industry. Competition between firms discourages monopolistic tendencies and foster innovation. Furthermore, scholars argue that firms’ innovation is guided by the level of its guiding technology. To be precise, industry competition agitates for new ideas for companies enjoying market efficiency while promoting a status quo for the inefficient ones. With the leniency of protectionist policies, traditional industries are forced to accept and apply new ideas when there is a new entrant i.e. foreign to help it retain its market position. However, inefficient firms are often locked out of competition as adoption of new technologies may end up eating up their profits. From the discussion, it is apparent that globalization has played an integral role in Canada in fostering the adoption of new technologies that benefit firms and the entire economy in both the short and long run.

Canada like other western economies is still recovering from the financial crisis shocks. Whereas the Asian tigers are enjoying a robust growth with increased levels of employment, Canada is still complaining of high unemployment and inflation rate. The unemployment and inflation issues have taken Canada to the drawing board as far as their international competitiveness and influence in the local economy is concerned. According to Canada policy analysts, globalization is largely to blame for the certain diminishing levels of its influence in the international economics (James 107). By embracing globalization and its opportunities, companies relocated out of their traditional countries. This move was necessitated by the reduced cost of doing business in these countries. This beats logic as the sole aim of business in to increase its revenues through the reduction of costs and improved quality.

Information technology and internet growth are the backbone of globalization. Most companies are able to operate at remote regions while maintaining lower communication and institutional costs. In addition, acceptance of English speaking countries in Asia to open up their economies to international companies has accelerated globalization (James 179). In relation to India, companies relocating there are able to harness cheap labor. While there is huge debate on the implications of globalization on the innovative activities of firms, there is an agreement that sound technology is the primary remedy of increasing jobs and improving the welfare of individuals. Innovation is guided by the production of quantity and quality goods. Therefore, its adoption could improve the citizens’ living standards from increasing products of choice to improved products and new ones. In addition, innovation is responsible for the creation of well-paying jobs that improve both firm and employees welfare in the long run. Moreover, consumers are also in the benefit trail. They realize this from improved product value and the availability of increased products of choice (Wallace and Vosko 184).

Considering the imminent need for innovation in today contemporary business world, many countries are concerned about the increased level of technology and production efficiency of competing countries. Initial industries concern is the loss of business to emerging economies who are fully exploiting innovation in their endeavors. The rate of adoption and the potential area of influence are some of the aspects considered during the design of an innovative system (Stephen and Wood 12). Innovation based on the aforementioned and rapid integrators to new technologies aid boost traditional efforts. In addition, globalization has changed the innovative activities of firms, both small and large in a huge way. Globalization has done a lot in enhancing specialization. In addition, it has enabled companies to enhance its productivity through the division of labor. By fostering division of labor, globalization has enabled individuals to be creative in their own field. This has relatively influenced the manner of operation of firms as any activity is guided by intensive research.

In the recent past, countries have found out that the only way to survive in the ever-changing business world is to be innovative. Each one of them is positioning itself to outdo fellow competitors. Most policy makers and company think tanks are in full support of this initiative of setting pace in technology. International markets are often considered open to innovative individuals. This implies only companies that are guided by consumer needs will thrive. To foster innovation, governments have lobbied private sector stakeholders as well as universities. The 20th century acted as a transitional stage of some economies and companies (Stephen and Wood 36). The companies that adopted new technologies were rated well in terms of performance and time savings. However, despite failure to be reflected in statistical books, innovative firms have been able to increase its revenues base as well as its market. This will be looked in the preceding paragraphs where we will be looking at how Canada manufacturing industry embraced innovation in its quest for increased market presence.

Canada has been reluctant to embrace globalization fully. Many conspiracy theories have been advanced to scare away the public and business community. There worries been aggravated by it been considered a shadow to the United States of America in terms of resources and global influence. Opponents of globalizations argue that liberalized borders could dilute Canadian culture. However, proponents see globalization as an opportunity to repair and cement Canada relations with the south. Although a number of policy makers critique the size of the Canadian market, the business world sees protectionist measures as barriers and total nuisance to business. The FTA (Free trade agreement) and NAFTA together with other agreements that seek to open up the borders between Canada, the United States and the rest of the world are paramount in facilitating trade while enhancing domestic growth (Stephen and Wood 65). Canada industries are lacking behind in terms of innovation compared to its neighbor, the United States of America. In accordance to Canada competition muscle, experts see its country being a dumping zone for other country products and culture.

To limit the effects of Americanization, experts are calling for citizen protection through the revamping of social programs. There is an assertion that its association with America’s agenda is diluting Canadian culture. However, according to cultural experts, integration and exchange of culture is imminent in the 21st century. In comparison to united states working culture, Canada workers enjoying the services of trade unions are half that of their immediate trade partner. However, Canadian trade unions are more powerful compared to the United States based firms. This is because they defend service sector and high tech firms in the industry.

Increasing local and international demand for Canadian products call for both short term and long term measures. Manufacturers need to inject much of their capital in infrastructure. They also need to engage in the development of production equipments that matches the increasing demand. In addition, new investments need to be in line with the expanding local economy. Moreover, due to economic predictions, the manufacturing industry needs to be preparing for international liberalization. To attract and retain consumers, manufactures need to go a notch higher in their strategies. With the sound production systems being operational, manufacturers’ introduction of commodity warranties will help the country compete on an equal footing with other states. This move will be a cracker to both the local and international market demonstrating the maturity of Canadian industry. With the level of confidence in the industry, banks will willing to offer financing services to new investors. The innovations and subsequent measures employed by the manufacturers and banks will attracted the world to invest in Canadian economy. Canadian companies need to harness globalized opportunity and established plants in some other countries that provided ready market for its goods and had reduced production costs (Rodney and Klassen 121).

Adoption of new technologies in the Canadian industries is to be credited for it rapid expansion and subsequently influencing the world. Traditionally, the united states of America were the largest customers of Canadian products. However, with continued innovation and improvements, the market demand for their products in other parts of the world has increased tremendously. The ever-improving technology aided Canada in its quest for new markets (Rodney and Klassen 143).

In their quest to conquer, the world, Canadian industry has experienced a number of pressures. However, the level of their response has kept them competitive while allowing them thrives in a populated market. Although globalization has opened up economies, it does not postulate a universal rule of engagement. Different states are guided by different rules and regulations. The satisfaction of all the regulations is a hurdle for most companies, those of Canada included. Most of these regulations often change with time and no company is able to conform to them fully at a go. These new social requirements range from lead pollution traffic safety measures. To address some of these social requirement issues, manufactures have designed industrial products that are environmental friendly to limit pollution and enhance user safety (Peter 117).

Despite the challenges facing Canadian manufacturing industry, its international presence i.e. to the United States of America and Europe has increased over the years. The interest of industrial manufactured products by the aforementioned nations is due to their performance and efficiency. Canada is also experiencing an increased demand of its human resource personnel from all over the world. This growing demand has led to the adoption of innovative strategies to establish plants in those countries. In addition, Canadian companies have enjoined in mergers and joint ventures to increase its presence in the global arena (Wallace and Vosko 357).

In conclusion, globalization of traditional industries is imminent, and the level of innovation in their primary activities is growing rapidly. With the need to increase international presence, firms need to reduce their production costs and employ sound and innovative activities that will keep them and edge in the ever-competitive environment. To survive rapid competition, firms need to merge or engage in joint ventures with other foreign companies. That way, a company is able to avoid several bottlenecks. Joint venture checks the operation costs while improving company efficiency levels. In addition, the interaction of personnel helps in the exchange of ideas and technical knowhow. The level of response of industries to social requirements of a state is also vital to its survival. The increased receipts of many economies are resulting from globalization. In addition, globalization has also provided an avenue of exchanging knowledge between states. This has led to political changes in a number of connected countries. From the discussion, it is paramount that for businesses and economies to increase their incomes, it has to embrace globalization fully. From Canada industries, it is imminent that countries that have embraced globalization by adopting sound business laws and legislations have thrived both locally and internationally. Protectionist measures are retrogressive and only aid to benefit monopolies at the expense of the public.

Works Cited

James, Bickerton. Canadian politics. Toronto, Canada: University of Toronto Press, 2009.

Wallace, Clement, and Leah Vosko. Changing Canada: political economy as transformation. New York, NY: McGill-Queen's Press - MQUP, 2003

Peter, Urmetzer. Globalization unplugged:sovereignty and the Canadian state in the twenty-first century. Toronto, Canada: University of Toronto Press, 2005.

Rodney, Haddow, and Thomas Klassen. Partisanship, globalization, and Canadian labour market policy: four provinces in comparative perspective. Toronto, Canada: University of Toronto Press, 2006.

Stephen, Clarkson, and Stepan Wood. A Perilous Imbalance: The Globalization of Canadian Law and Governance. Vancouver, Colombia: UBC Press, 2009.

Roger, Gibbins, and Loleen, Berdahl. Western visions, western futures: perspectives on the West in Canada. Toronto, Canada: University of Toronto Press, 2003.

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