With the rise of globalization, international markets have been expanding for quite some time. International business and globalization allows businesses to reach a larger market, tap into resources that they do not have access to at home, and utilize lower costs, like low labour costs. Being from Canada, in comparison to somewhere with a large domestic market, our business must be able to take advantage of wider global opportunities. Canada lacks competitive advantages that others can offer, such as cheap labour, manufacturing, and technological advances.
International business and trade also affects citizens. We can talk about this in terms of price of goods. With international trade comes trade barriers such as tariffs. We are seeing this more often, with countries having to walk a fine line between free trade and protectionism policies such as tariffs and subsidization of domestic businesses.
Along that line, international trade can be indirectly affected by adjacent country's trade policies and actions. For example, China and The United States' tariff war affects Canadian prices, despite them not being directly involved.
We can compare this to the events in the EU, where the UK is aiming to set up protectionist policies surrounding refugees and guarding the labour market. The difficult part is the accuracy. In this case, the amount of UK citizens working and retired is equal in the country and in the rest of the EU.
How have you been affected by international business and trade?
-xoxo EJ
No comments:
Post a Comment