Chapter 3- Globalization

o What types of impact does Globalization have on our daily lives?

o Financial
- Interest rate
- debt increases because everyones borrowing
o Personal Impact
- Job prospect

Global Commitment to stimulate the economy
- Infrastructure spending

Q: How would globalization affect you as a: consumer, employee, business owner and student?

Consumer
- Lower prices
- Variety
- Better Quality
- Freedom of
Choice
Employee
- More jobs
opportunities
- More competitions
- Loss of jobs
(outsourcing)
- Lower wages/ less
benefits
- Employers wants
more skills
Business Owner
- Larger markets/
expansion of
business
- Cheaper labour
- More competitions
- Foreign
investments
- Different
challenges
Student
- More learning
opportunities
(going to different
countries)
- Competition
- more career
opportunities
- need higher
education

Q: What resources are required to grow wheat?
- Land
- Labour
- Good quality seeds
- Machineries
- Investments

Q: How do Canadas resources stack up against Englands?
- More land
- More natural resources
- Good climate
- Canada has the comparative advantage

Q: Why does England provide large subsidies to their farmers to grow wheat?
- Theyre farmers cant compete with Canadian farmers
- They do it to keep the economy going and keeps jobs available
- Stable goods doesnt want to rely on imports

Q: List the reasons why Canada and United States trade so much?
- Geographic proximity
- Good political relations
- Free trade (NAFTA)
- Similar culture
Chapter 3- Globalization

- More investment opportunities
- Canadas resources
- Canadas dependency on market
- Location of Canadas population
- Canadas abundance of natural resources
- Exchange rate

Read the article: Borderline Insanity
1. Contrast the impact of tighter boarder security in the auto industry between foreign built and
North American built cars?
Harder to get a foreign built car in the state because its going to cost more. When cars made in
Japan they only clear custom once as if they were made in North America they clear customs 7
times. Its easier if you are a foreign company and if you export your products into North America
2. What was John Manley referring to when he said, Politics is often more about perception than
reality when dealing with trade between Canada and the United States and the United States and
Mexico?
Find out what is required for clearance. There are different safety standards between the U.S and
Canada, but if we do thatll be easier.
Concern: who is going to have access to my information
3. If your business had a significant number of U.S. customers, what would you do in managing
border clearance?