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Globalization

Essay by   •  September 14, 2010  •  Research Paper  •  3,366 Words (14 Pages)  •  2,404 Views

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Introduction

Globalization is the process by which a business or company becomes international or starts to operate on an international level. Globalization does not benefit the majority of the world's population, including Canadians, and is slowly growing to increasingly deadly proportions. It benefits the wealthy, which are but a minority in comparison to the rest of the population, and leaves the impoverished ones out of the loop. The unsteady flow of invisible money running in and out of countries has our markets operating like roller coasters. Globalization renders our government powerless and leaves them at the mercy of foreign investors. The negative effects of globalization far outweigh and short term gains.

Diminishing Middle Class

A diminishing middle class seems to be a recurring trend all over first nations, including Canada. The evening news and business reports are bombarded with news of a declining middle class and increase in the number of poor people. There seems to be a pattern of growing poverty that is in relation to a diminishing middle class. It seems as though the shrinking middle is on its way to extinction and the number of poor people is increasing tremendously.

Our society shall soon be composed of two groups, the filthy rich and the filthy poor. This is a direct consequence of globalization. There seems to be a rule associated with globalization that states that a government has to do everything in its power to attract foreign investors regardless of any social problems. In an attempt to attract such foreign investors, governments have tried to maintain a low inflation rate. However, what they fail to mention is that unemployment is the sacrifice that has to be made in order that inflation rates remain low. The increase in unemployment is causing the decrease in the middle class. Another cause of this decline are the growing interest rates that are being driven up to combat the malevolent inflation. As stated in the 2000 Budjet report, "major central banks started to raise interest rates earlier this year." These interest rates are driving families further into debt. Thus, people are losing their homes, cars, and so much more, all in the name of globalization. The governments priorities are becoming forgotten and replaced with the great game of monopoly.

Volatile Markets

Volatile markets are yet another price we have to pay for globalization. Three trillion dollars are jumping in and out of countries daily worldwide. This three trillion dollars flows in and out of countries based on trade rumours or a sixth sense. It was this instability that caused the crisis in Mexico in 1994. As companies become more international in scope, they are free to move operations quickly from country to country based on local conditions, greatly improving their power against local governments, businesses and workers. This is turn severely reduces government regulation of trade, investment, labour, health and safety, and the environment. Government spending would indeed be slashed, especially in the areas of social services. Devalue the currency in order to make exports more attractive and weaken labour to make wages "competitive". The pursuit of the almighty dollar has lead Mexico into ruins and who's to say it cannot have the same disastrous effects on Canada.

Threat to Environment

One Mexican president stated that globalization is healthy and positive as long as it benefits everyone. He states, " C'est Ðo mon avis une occasion extraordinaire pour les Amйriques de travailler ensemble. Mais il faut s'assurer que tout le monde soit gagnant: en tout premier lieu, que cela respecte des valeurs universelles." However, this is not always the case, as globalization allows for first nations, such as Canada, to continue bullying developing nations in need of help. Due to lack of desirable resources such as skilled labour or advanced technology, a third world's biggest resource ends up being their natural resources. These counties are so deeply indebted to the countries of the G8(Canada, USA, Italy...) that in order to survive they comply fully. Being a must that third world countries obey and stay competeive under globalization, countries are forced to make a profit on all possible resources. It forces them to destroy their natural resources. In order to aid these countries in the destruction of the land and the massacre of almost extinct animals, major corporations move in and lend a hand. They come over and buy portions of land at a fraction of what it's worth, then they hire the few locals and pay the enough money for them to survive. So by the end of the day a few forests have been demolished and maybe a species or two have become endangered or extinct which is quite an accomplishment. This is what many third world countries have to do in order to repay debts that are virtually impossible to pay off, or to stay "competitive" in the global markets so they can receive a little help from the G8. The poor countries will remain poor, as they do not possess the necessary resources to attract investors or to be competitive in global markets. Governments will no longer care about social problems; their number one priority shall be competing globally for invisible dollars. Globalization does provide immediate profit for these first countries such as Canada by exploiting poor countries but we should not be blinded by these short-term gains. It is causing us to be money-starved animals not allowing us to speculate the disastrous long-term effects. When the last tree has died and the last river has been poisoned and the last fish has been caught, we will probably realize that we cannot eat money. Humans depend on the environment to survive, so these quick economic rewards are only temporary and an empty pursuit.

Conclusion

Under globalization, nations compete to attract foreign investors and corporate operators. Global investors seek those opportunities that offer the greatest promise of growth for their funds. Globalization has told us that in order to be competitive, a nation must orient its policies around encouraging and supporting economic growth despite whatever social deterioration and environment degradation caused. It is safe to say that globalization is definitely harmful to the well being of Canadians and any other people.

Bibliography

Taillefer, Guy. "Les Amйriques according to Vicente Fox." Le Devoir April 2001

Drohan, Madelaine. "Spoils

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