Effects of Globalization in Canada and Saskatchewan: Ossified Leadership and a Downsizing Economy

The Falseness of Globalisation and Communism

Winnipeg, MB - April 11, 2001 - by: Cassandra Loiselle

(Cassandra Loiselle is a Political Science student at the University of Manitoba and is responding here to yesterday's story by Mario deSantis)

pure fascist
It is a common belief held by many that countries like Cuba and the former Soviet Union are communist. This is a great atrocity! Communism is nothing like Cuba and the USSR. These countries are pure fascist countries. The countries were/are lead by dictators and military forces, while a true communist country has no head of state.

property
Communism is most comparable to Socialism, except in a communist state there is no such thing as private property or government.

regionalisation
On the topic of globalization, it has been found by some (specifically Chernomas and Sepehri) that globalization is a myth and there is more of a trend towards regionalisation.

government
is dead
Dianne Cohen says that government is dead because of globalization. Companies are looking for profits or the rates of return on investments. The way to attract companies is to keep taxes, environmental costs and wages down to increase profits for the multi and transnational corporations. The state is unable to do much and is effectively dead and self-destructive. If the government tries to spend money or raise government revenue through taxes they effectively reduce the amount of profits available to corporations. Part of this revenue government wants, which is used to pay for health and education, comes from transnational corporations. With transnational corporations being nothing more than computer networks it is easy for them to threaten capital flight unless taxes are decrease, which then causes deficits and debts. If governmentís deficit spend or go into debt they must borrow money, which crowds out the private investors.

productivity
A criticism of this view is the unit labour cost. If Japanese are paid $10/hr and produce100 units in an hour, and Canadians are paid $11/hr and produce 120 units in an hour they wages may be higher but more productive meaning that the effect cost per unit is lower.

health care
Another criticism is of Cohen's view of health care. In Canada the health care systems cost companies less because they do not have to pay for each worker but rather pay taxes for all workers, covering only part of the cost. In the United States companies must pay workers more to cover benefits for health care. The health care system also keeps worker healthy and able to work. The education system in Canada also leads to a more education labour force leading to the potential of more efficient workers who produce more for the same wage and may even develop new technologies to increase productivity

less trade
Chernomas and Sepehri suggest that Cohen is not correct in the argument about globalization. Globalization means increasing levels of trades across the world and one economy. In looking at the economies of the North Americas, Europe, Asia and Africa is it notable that we find there have been less trade between these economies but more trade within these regions. Regionalisation not globalization! Most economies have become more closed, meaning that they are decreasing Xn (net exports) as a portion of GNP.

direct
investment
A trade flow is the flow of tradable goods between markets/economies. Foreign direct investment is investment by foreigners into other economies, whether it is through merger and acquisition or new investments. The globalization argument says that the economies of the world will merge into one large economy will trading of goods flowing freely between all countries. In has been seen over history that economies, rather than becoming more open and increase Xn as a portion of GNP, they have become more regionalized, for example the European union or the NAFTA. The globalization argument would also say that you may not necessary see trade increasing so much but seeing large foreign direct investment.

increase
in mergers
When talking about foreign direct investment there are two things to consider: whether it is new or old investments and whether it is investment in tradable good or services. In looking over the past couple of decades it appears that foreign direct investment has increase, but upon further inspection one would see that really this is just an increase in mergers and acquisition meaning that it is just only investments trading hands. When looking at whether it is tradable good vs. services is most notable that in most economies Tradable goods as a part of GNP has decreased and more services are being provided

Cassandra Loiselle

The Falseness of Globalisation and Communism



Winnipeg, MB - April 11, 2001 - by: Cassandra Loiselle

	(Cassandra Loiselle is a Political Science student at the University of Manitoba and is responding here to yesterday's story by Mario deSantis)

pure fascist	It is a common belief held by many that countries like Cuba and the former Soviet Union are communist. This is a great atrocity! Communism is nothing like Cuba and the USSR. These countries are pure fascist countries. The countries were/are lead by dictators and military forces, while a true communist country has no head of state.

property	Communism is most comparable to Socialism, except in a communist state there is no such thing as private property or government.

regionalisation	On the topic of globalization, it has been found by some (specifically Chernomas and Sepehri) that globalization is a myth and there is more of a trend towards regionalisation.

government is dead	Dianne Cohen says that government is dead because of globalization. Companies are looking for profits or the rates of return on investments. The way to attract companies is to keep taxes, environmental costs and wages down to increase profits for the multi and transnational corporations. The state is unable to do much and is effectively dead and self-destructive. If the government tries to spend money or raise government revenue through taxes they effectively reduce the amount of profits available to corporations. Part of this revenue government wants, which is used to pay for health and education, comes from transnational corporations. With transnational corporations being nothing more than computer networks it is easy for them to threaten capital flight unless taxes are decrease, which then causes deficits and debts. If governmentís deficit spend or go into debt they must borrow money, which crowds out the private investors.

productivity	A criticism of this view is the unit labour cost. If Japanese are paid $10/hr and produce100 units in an hour, and Canadians are paid $11/hr and produce 120 units in an hour they wages may be higher but more productive meaning that the effect cost per unit is lower.

health care	Another criticism is of Cohen's view of health care. In Canada the health care systems cost companies less because they do not have to pay for each worker but rather pay taxes for all workers, covering only part of the cost. In the United States companies must pay workers more to cover benefits for health care. The health care system also keeps worker healthy and able to work. The education system in Canada also leads to a more education labour force leading to the potential of more efficient workers who produce more for the same wage and may even develop new technologies to increase productivity

less trade	Chernomas and Sepehri suggest that Cohen is not correct in the argument about globalization. Globalization means increasing levels of trades across the world and one economy. In looking at the economies of the North Americas, Europe, Asia and Africa is it notable that we find there have been less trade between these economies but more trade within these regions. Regionalisation not globalization! Most economies have become more closed, meaning that they are decreasing Xn (net exports) as a portion of GNP.

direct investment	A trade flow is the flow of tradable goods between markets/economies. Foreign direct investment is investment by foreigners into other economies, whether it is through merger and acquisition or new investments. The globalization argument says that the economies of the world will merge into one large economy will trading of goods flowing freely between all countries. In has been seen over history that economies, rather than becoming more open and increase Xn as a portion of GNP, they have become more regionalized, for example the European union or the NAFTA. The globalization argument would also say that you may not necessary see trade increasing so much but seeing large foreign direct investment.

increase in mergers	When talking about foreign direct investment there are two things to consider: whether it is new or old investments and whether it is investment in tradable good or services. In looking over the past couple of decades it appears that foreign direct investment has increase, but upon further inspection one would see that really this is just an increase in mergers and acquisition meaning that it is just only investments trading hands. When looking at whether it is tradable good vs. services is most notable that in most economies Tradable goods as a part of GNP has decreased and more services are being provided

	Cassandra Loiselle