7 Questions
What is a potential consequence of increased foreign ownership in Canada?
Revenue leaving Canada to pay head office costs
What is a primary benefit of globalization, according to the text?
Lower prices for consumers
What is a potential social issue associated with globalization?
Increase in income gap
What is a primary concern of protectionism?
Protecting domestic industries from foreign competition
What is a potential consequence of the outsourcing of jobs?
Job loss in the domestic economy
What is a primary concern of populism, according to the text?
Protecting the interests of ordinary people
What is a potential environmental consequence of globalization?
Increased pollution
Study Notes
Results of Increased Foreign Ownership
- Job loss due to foreign ownership
- Revenue generated in Canada is used to pay head office costs outside of Canada
- Challenges in research and development
- Reduced exports as a result of foreign ownership
- Economic destabilization in Canada
Globalization
- Process of integrating national or regional economies and cultures through:
- Global communication technologies
- Foreign direct investment
- International trade
- Immigration
- Flow of money
Pros of Globalization
- Outsourcing jobs to specialize in competitive advantage
- Lower prices for goods and services
- Decrease in poverty through economic growth
- Innovation through sharing of ideas and technology
- Optimal use of resources globally
- Better job opportunities in specialized fields
- Increased capital flow between countries
Cons of Globalization
- Lost jobs due to outsourcing
- Fear of job loss and insecurity
- Loss of Canadian productivity and competitiveness
- Exploitation of cheap labor in developing countries
- Increased pollution and environmental degradation
- Safety concerns and risk of disease outbreaks
- Increase in income gap between rich and poor
- Influence of multinational corporations on governments
- Social and political issues arising from globalization
- Global financial crisis and economic instability
- Data leaks and cybersecurity threats
- Rise in populism and protectionism as a reaction to globalization
Additional Concepts
- Populism: a political approach that appeals to ordinary people who feel disregarded by elite groups
- Protectionism: the theory and practice of shielding a country's domestic industries from foreign competition through taxing imports
This quiz assesses your understanding of the advantages and disadvantages of globalization on a country's economy, including its impact on job loss, revenue, research and development, and exports.
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