Canada in the Global Economy Essay examples -- Economics Globalization

Canada in the Global parsimony Over the past few years, Canadas economy has done comparatively easy and has demonstrated some resilience to the fluctuating global economy. However, Canada remains to be relatively less competitive with respect to other developed countries. In this paper I volition attempt to take a ne arr look at Canadas position in the global economy instantly and examine the relevant issues.Competition is an important driver of innovation and productiveness growth. Looking at the domestic Canadian economy, perhaps one of the close significant barriers to a strong domestic economy is the lack of violent competition among domestic firms. There are many reasons for this. First of all, the coat of the Canadian economy is too small to support the development of tumescent corporations. The US on the other hand, has about a ten times larger population, and because, a much larger market and demand are in place for larger multinational companies to build. As a co nsequence of the lack of sufficient domestic demand in Canada, only a small number of larger firms are developed in each industry. Furtherto a greater extent, Canadian firms seldom treat research and development as a priority. Unlike in the US, innovation is not a corporate close in Canada. This can be partly due to the lack of glowing domestic competition, causing firms to spend resources on other areas instead of R&D because there is no real urge to innovate and produce competitiveness. The government also plays a major role in ascertain the level of domestic competition. In the past, the Canadian government had not been confirmative to introduce rivalries in its domestic industries. There had not been any receive and well defined competition policies there were however, numerous policies enforcing tariffs for imported products that had been protect domestic firms from competition from abroad. Although some can argue that such certificateism was necessity in the starting p hase of an industry, but Canada has still been maintaining some of these protection policies even today for well developed industries such as the wire and electricity industries. These protective policies do not promote domestic rivalries and therefore lead to a lack of productivity gain that can be achieved through competition. Although many of these protective policies are now non-existent anymore, what these policies had d... ...competition that drives productivity gains. aim from Canadian firms is limited, resulting in stagnant productivity improvements. The Canadian labour strong suit is also relatively weak and the working environment relatively non competitive. In the future, Canada will be moving towards a service-oriented economy that rests to rely hard on exports. The concept of competitiveness will become more and more crucial for the success of the Canadian economy.It is therefore imperative for Canadian businesses to continue to improve productivity and develop th e culture of continuous research and innovation. acute domestic and foreign competition also needs to be in place to drive productivity gains. The role of Canadian government will be to make Canada an attractive place to work, live and invest. This will sire in valuable human as well as pecuniary capital that will be conductive to achieving competitiveness. The government should also examine and deal with social and environmental issues as a matter of priority with a strategy to move ahead of other developed countries and bend future burden on the economy when these issues start to become a bigger problem in the future.