The Impact Of Globalization On The Economy Of The United States

1115 Words Aug 17th, 2015 null Page
Throughout Canada’s history, exposure to export markets with the U.S.A. has revealed our economic reliability and vulnerability to the American economy. Whenever the U.S.A. economy does poorly, so does the Canadian economy. This is because Canada only has two major export destinations under the free trade agreements signed with USA and Mexico in the 19th century. America is certainly a treasured ally economically however Canada has become too dependent upon the U.S.A. Their future will be based on their ability to expand into a new global economy of the 21st century; by keeping a vision for Canada that ensures that trading opportunities in the world are endless (Passaris, 2013).

Globalization is described as the global combination of economies through trade and investment flows as well as the production of goods and services in order to enhance international competitiveness. Globalization has been driven by the development of financial liberalization and the improvements of financial instruments (Passaris, 2013). Financial liberalization is the removal or reduction of both tariff and non-tariff obstacles which increases the trading market of goods and services with each country. This is often referred to as promoting "free trade agreement” (Trade Liberalization, 2014). Tariffs are taxes at the border that increases the costs of the imported goods and or service. Tariffs were created so business and consumers would buy domestic products and services rather than import…

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