Globalization of Business
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Canada has many large Transnational Companies, most notably Northern Telecom (Nortel), Magna International, Nova Corporation and International Nickel to name a few. These TNCs have different operations in many parts of the world that look after the design, engineering, development, marketing, testing and manufacturing of its products and services.
In order to compete in todays competitive global environment, Canadian companies have always tried to identify where their products and services can be produced or serviced at the lowest cost, while maintaining a high standard of quality and professionalism. Keeping cost expenditures to a minimum ultimately benefits these companies as demand for their products and services increases, producing increased sales and profits. This benefits the company, its employees, shareholders, the local government and the Canadian economy.
In the twenty-first century, technology has played a major role in the globalization of business. The Internet, web-conferencing, computers, high speed telecom equipment and even your basic fax machine has transformed the way businesses think about potential clients. For example, the advent of computers have quickly given rise to the internet and the internet is a communication technology which allows us to send e-mails and read articles instantaneously. This information is at our fingertips and allows us to make more informed decisions about how and where the business opportunities are located.With the new technology tools and the companies thinking more global, this has opened up many new job opportunities for its citizens who work inside Canada and who work abroad.
With globalization, low paying labour jobs will generally go to other countries such as China. However, jobs requiring higher education and skill sets will remain in Canada. Product innovation and development will tend to stay in Canada, creating better paying jobs and contributing to the Canadian economy. This will also help in developing new technologies since the development is done in Canada.
Search studies from some of the top universities in the country have warned that if transnational companies decide to cut back their foreign expenditures and investment, and solely
concentrate on their home market, sooner or later (much sooner) they will become uncompetitive and eventually will go out of business. Many companies have invested