Canada in the Global Economy Essay examples -- Economics Globalization

Canada in the spheric Economy Over the past few years, Canadas providence has d whizz relatively well and has demonstrated about resilience to the fluctuating global economy. However, Canada ashes to be relatively less competitive with respect to other unquestionable countries. In this paper I volition attempt to take a closer look at Canadas position in the global economy today and examine the relevant issues.Competition is an important driver of renewal and productiveness growth. Looking at the interior(prenominal) Canadian economy, perhaps one of the most signifi wadt barriers to a strong domestic economy is the deficiency of indecadese competition among domestic firms. There are mevery reasons for this. starting line of all, the size of the Canadian economy is too small to support the growth of large corporations. The US on the other hand, has about a ten times larger population, and therefore, a much larger market and claim are in place for larger multinational com panies to build. As a result of the inadequacy of sufficient domestic demand in Canada, lone(prenominal) a small number of larger firms are positive in each industry. Further more(prenominal), Canadian firms seldom treat look for and development as a priority. Unlike in the US, innovation is not a merged culture in Canada. This can be partly due to the lack of intense domestic competition, causing firms to spend resources on other areas rather of R&D because there is no real urge to insert and maintain competitiveness. The presidential term likewise plays a major role in determining the level of domestic competition. In the past, the Canadian government had not been supportive to introduce rivalries in its domestic industries. There had not been any clear and well defined competition policies there were however, numerous policies enforcing tariffs for merchandise products that had been protecting domestic firms from competition from abroad. Although some can argue that su ch protectionism was necessary in the starting phase of an industry, but Canada has still been maintaining some of these protection policies even today for well developed industries such as the cable 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. Innovation from Canadian firms is limited, resulting in stagnant productivity improvements. The Canadian parturiency force is also relatively weak and the working environment relatively non competitive. In the future, Canada will be moving towards a service-oriented economy that continues to blaspheme heavily on exports. The concept of competitiveness will choke more and more crucial for the success of the Canadian economy.It is therefore imperative for Canadi an businesses to continue to improve productivity and develop the culture of continuous research and innovation. Intense 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 bring in valuable human as well as financial capital that will be conductive to achieving competitiveness. The government should also realize and deal with social and environmental issues as a proceeds of priority with a strategy to move ahead of other developed countries and avoid future burden on the economy when these issues start to become a bigger problem in the future.