Globalization that trends and policies in China have a

Globalization is playing an ever-increasing role in lives around the world. As globalization continues, there are more and more countries that are seeing unprecedented growth, and becoming integrated in the global economy. This integration means that their policies matter for developed countries like Canada, as well as for their own. This essay will focus mainly on China, the United States (US), and Iran to demonstrate the key roles other countries play in Canadian economic policies.  Globalization and the interconnectedness between countries has been, and will continue to be, one of the driving forces of the Canadian economy. When discussing the countries that thrived under globalization, China often tops the list. It is not a surprise then, that China has grown from being our fourth largest trading partner to our second (close behind the United States), in a span of only 20 years. Canada and China have economies more interwoven than ever before, meaning that trends and policies in China have a profound effect on Canada’s economic policies. One trend being observed right now in China is a shift from necessities to luxury’s; from needs to wants. An example of this is the rising popularity of genealogy; a surge in the population is now spending their time and resources on something that has arguably no impact on one’s ability to survive. While at first glance, this may not seem to have any impact on Canada, it indicates that China is becoming a developed nation, a huge deal in the economics world. What will this mean for Canada? While no one can be entirely certain, they are definitely patterns one can use to predict what this means for Canada. While China has been growing, it has benefitted Canada. So one can assume that China’s growth can only mean an increased number of opportunities for the Canadian economy. Take oil, for example. China’s growth has meant better prices for the resources Canada sells. China has become the world’s second-largest consumer of oil, with its demand doubling over the past 15 years.This has helped make Canada richer. China’s increased demand for commodities contributed to the big improvement in Canada’s terms of trade—the price of our exports relative to that of our imports—between 2001 and 2008 (China’s Great Transition, 2016). This displays the clear link between a rising Chinese economy and a rising Canadian economy. If we can use this idea that a growth for China’s economy means a growth for Canada’s economy, the rising number of people conducting searches for genealogies actually poses as an exciting opportunity for the Canadian economy. However, China is going through a particularly rough time, as the next stage to development is a particularly rough one, one that is uneven and can be difficult to manage. We have examined a positive link between Canada and China, but what about a negative one? If China becomes stuck in the “middle-income trap” (a name given to emerging economies that seem as though they are going to become developed, only to see stagnant growth for many years), this will also have effects on Canada. Canada would see slower trade and lower commodity prices. One model looks at how Canada would would be affected if GDP growth in China were 1 percentage point lower than the baseline projection. They found that Canadian GDP would be 0.1 percentage point lower than it would have been otherwise (China’s Great Transition, 2016), which comes out to 15 300 million CDN. Clearly, this demonstrates the degree to which China affects Canada, both negatively and positively. Therefore, China’s policies and trends have profound impacts on Canada’s economy.Arguably, the country that affects Canada the most is its neighbour: The United States. It’s closest ally and largest trading partner, the United States affects Canada with every economic decision; for better or for worse. One can examine the National Security Strategy (NSS) to see the “worse” side of this argument. As stated in the article “Through the Nuclear Prism”, President Trump unabashedly puts America First. Discarding even routine lip service tomultilateralism or the idea of collective security, the US openly admits to furthering its national interests on the basis of what it calls “principled realism”. What President Trump seems to forget is that the global economic system is not a zero-sum gain, but is connected for mutual benefit. This new NSS policy will have deep impacts on Canada, and its economic policies, particularly in regards to Canada’s involvement in NAFTA. Particularly with the news of possible tariffs on aluminum and steel imports, in the name of “national security” (Trump’s National Security Strategy, 2018). This affects Canada quite simply, as Canada exports $4 billion worth of grey matal to the US every year. But there is also a more insidious implication: that Trump’s approach to aluminum demonstrates his administration’s default setting isn’t “dialogue” but instead the liberal use of “enforcement tools” against friend and foe alike (Trump’s National Security Strategy, 2018). With Canada and the US so closely intertwined, the focus that the NSS has put on America has the ability to be devastating for Canada. However, much like with China, there are sectors where interconnectedness has a positive impact on Canadian policies and its economy. Take the Keystone XL Pipeline. While there is pushback from an environmental standpoint, the pipeline holds promise for those who see economics as being purely about growth in the monetary sector. President Trump reversed Obama’s decision to halt the pipeline, a first step that had a huge impact on Canada. In  2016, Canada’s oil exports to the US reached its highest levels ever, demonstrating how a more direct route to the US will be beneficial not only for Alberta, but for Canada as a whole (Canadian oil exports to U.S., 2016). Oil sands production is expected to climb by 315,000 barrels per day next year, followed by 180,000 barrels in 2019, according to Royal Bank of Canada. This suggests that the Keystone XL will bring in a substantial amount of wealth for Canada, demonstrating how policies in the United States have the ability to positively affect Canada. Therefore, globalization has shaped Canadian economic policies through its interconnectedness with the United States. While examining Canada’s closest allies is important, it is also necessary to look at the impacts that countries further away (figuratively) than the US and China. Iraq is a good example of this. Iraq also serves a slightly different purpose with Canada’s policies. With China and the US, there is a lot of focus on how they help or hinder Canada. But this is not the only way that things work: Iraq is a great example of showing how Canada can help or hinder other countries. Hussain, Yadullah. “Canadian Oil Exports to U.S. Reaches Highest Level Ever, as Shale Production Falls.” Financial Post, 20 Jan. 2016, business.financialpost.com/commodities/energy/canadian-oil-exports-to-u-s-reaches-highest-level-ever-as-shale-production-falls.