In economic theory, increased trade between countries leads each country to concentrate its
productive resources in areas of greatest comparative advantage, and this lead to higher national
incomes. The basic idea is that access to larger markets and increased competition will lead to
economies of scale, specialization, and higher productivity, and thus rising living standards.
However, in real world, a country might be a net exporter of capital, and workers who lose their
jobs due to increased imports might not find comparable or better jobs quickly due to a shortage
of expanding sectors. In addition, the criticism of the book “Work and Labour in Canada: Critical
Issues”, pointed out that the rising in North-South trade had impacted negatively on Canadian
jobs and wages; moreover, the shift of manufacturing to developing countries and elsewhere in
Americas has been an important cause of plant closures and layoffs in the manufacturing sector,
and there is also a sign of growing impact on service sectors (Jackson 2010: 251).
Some argue that globalization is a positive development, as it will give rise to new industries
and more jobs in developing countries. Others say globalization is negative in that it will force
3

poorer countries of the world to do whatever the big developed countries tell them to do. Another
viewpoint is that developed countries, including Canada, are the ones who may lose out because
they are involved in outsourcing many of the manufacturing jobs that used to be done by their
own citizens. Outsourcing refers to obtaining goods by contract from outside sources. This is
why people may find many of their clothes with labels from developing countries such as
Cambodia, China, and Vietnam, where these products can be produced at lower cost. Critics of
outsourcing feel that no one wins with this practice. Workers in Canada and other developed
countries may lose their jobs while those doing the work in poorer countries get paid much less
while working in poor conditions. What can be done about these realities? To answer this
question, the paper will discover the history of globalization in order to find out the origin of the
change in Canadian labor market.
1.
The revolution of globalization
According to Frank J. Lechner and John Boli (2012), many scholars point to sixteenth-
century Europe as the original source of globalization. After the European established worldwide
trade connection on their own terms, brought their culture to different regions by settling vast
areas (Lechner, and Boli 2012). Thus, the modern world system already existed nearly five
centuries ago. It is true that globalization is the race to the bottom on the free trade market.
Therefore, any producers can afford a low cost of production will be a winner in this race. But
how can they do that? The solution is that they have to increase the productivity of workers by
apply scientific management or Fordism methods, because these are two special tools of the
industrial manufacture since 1920s.


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- Fall '14
- JohnWalker
- Economics, Labour economics, Developed country