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Canada: Effect of Global Changes Research Paper

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Updated: Oct 23rd, 2021

Introduction

Among the biggest global changes which can influence Canadian way of doing business the most significant one is climate change which can negatively affect oil industry in the country. Oil issues together with the climate change have been troublesome for over a decade but it is now that both of them became problematic not only potentially but actually as well. What the world is facing now is carbon-related mega-boom reflected in the fact that most of the enterprises are aiming to reduce the use of fossil fuels and choosing to utilize the sources of alternative energy, such as wind and wave power. Over fifteen billion dollars has been already invested into the renewables which constitutes a small part of global investment the scientists expect in the coming twenty years.

Main body

It should be noted that climate change is likely to affect small and big Canadian businesses which are to at least some extent connected with the production or utilizing of oil this is why Canadian way of doing business in oil industry both domestically and internationally should be adapted to the changes the global warming may involve. The policy of the enterprises should be revised in order to avoid possible losses in the near future. This is relevant not only for the benefit of Canada but for other countries which depend on the oil Canada imports. This, in particular, concerns the United States of America since “contrary to popular belief, Canada, not Saudi Arabia, is the largest supplier of oil to the United States” (Peter Tertzakian 141).

What is especially evident is that high oil prices only contribute to the further development of the alternative sources of energy. The average level of energy prices will for a long time remain at $80-100 for a barrel whereas renewables are much cheaper and pay themselves very rapidly. All this shows that even slight increase in prices for oil, for instance merely $5 for a barrel, would be enough for a new innovative technology to be brought into world market. This is why Canadian oil companies should take into account that global warming which is threatening the world is likely to bring about changes into the oil industry and the companies should be ready to accept them and adapt to these changes.

As far as global trade is concerned, profound knowledge here is vital for those who want to build their career in the sphere of the world economy. Knowing about the factors of production of the global trade, capital and labor, and studying these factors one will always be able to manage and control them. Choosing the area of the global trade one will be interested in will help in pursuit of a career in business since the areas the global trade needs specialists in are innumerable. Any kind of business is connected with trade at least partially this is why building career in business without knowing anything about global trade is impossible. Guided by the notions of import and export, as well as different models of international trade, The Ricardian model, Heckscher-Ohlin model, Specific factors model and Gravity model, which make it possible to predict the most diverse trade patterns and to “categorize the sources of potential competitive advantage for firms” (Tamir Agmon, Richard Drobnick 2), a person will be able to become a successful businessman and contribute to the development of the global trade.

Conclusion

Taking into consideration everything mentioned above it can be stated that such a global change as climate change may significantly affect Canada’s way of doing business because it directly influences the oil industry which is important for the country. Regarding the necessity of knowledge in the sphere of global trade, it is very important to study it since it proved to be beneficial for building career in business.

Works Cited

Peter Tertzakian. A Thousand Barrels a Second: The Coming Oil Break Point and the Challenges Facing an Energy Dependent World. McGraw-Hill Professional, 2007.

Tamir Agmon, Richard Drobnick, University of Southern California International Business Education and Research Program. Small Firms in Global Competition: a research book from the international business education and research program University of Southern California. Oxford University Press US, 1994.

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IvyPanda. 2021. "Canada: Effect of Global Changes." October 23, 2021. https://ivypanda.com/essays/canada-effect-of-global-changes/.

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IvyPanda. (2021) 'Canada: Effect of Global Changes'. 23 October.

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