1. Challenges and Opportunities of Economic Globalization
Chapter 12
Challenges and Opportunities of Economic Globalization

2. FORMS OF TRADE LIBERALIZATION
Crown Corporations: Canada Post
2. Deregulation: Energy Providers
3. Privatization: Petro-Canada, government-owned liquor stores

3. For what reasons do governments set up Crown Corporations
For what reasons do governments set up Crown Corporations? What are the advantages?
The purpose of crown corporations is to provide an important (essential service) that should not be left in the hands of the private market. The service may be required by law. Some advantages may be: ease, necessity, speed of development, focus on area of importance.

4. Canada Post is a Crown Corporation
Canada Post is a Crown Corporation. Does it provide an essential service in today’s highly technological society?
Canada Post Some information can only be transmitted by hard copy, access to computers is not universal, Canada Post may be diversifying their service.

5. What is the connection between privatization and globalization?
Globalization increases privatization because Crown Corporations are government-subsidized (seen as a barrier to freer trade).

6. Alberta Energy Debate benefits FOR and AGAINST energy deregulation
Against Deregulation
The motive for business is to make profit – not to provide equal service to all
If there is no competition the price will go up
There is not a large enough population in Alberta to attract more competition
For Deregulation
Businesses will compete to provide cheaper prices
Too much government involvement is inefficient
The government should “make the rules” and allow business

7. Privatization Privatization:
The sale of government owned businesses to private organizations
Motivations for privatization
Profit
Change in needs
May result in a more efficient service
Pressure from globalization
Govt run businesses are “subsidized”
Foreign companies will not invest if there are too many subsidies
Privatization brings in money from foreign countries

8. Privatization - continued
> Forces of globalization: when governments are running industries, they often provide forms of subsidies that can prevent other countries from gaining access to that market. Therefore, in a global market, privatization is seen as advantageous to other countries.
> Some feel that in the end the government ends up subsidizing the company anyway.

9. How do governments benefit from privatization?

10. Privatization Examples of Crown Corporations that privatized
Alberta Energy (deregulated)
Alberta Liquor
AGT

11. “Whisky is for sipping water is for fighting.”
billion bottles purchased this stat has gone up to 50 billion
bottles per second in the USA
Cost of water is more than the cost of gasoline
Surface water is held in public trust-ground water is under the term absolute dominion--- he who has the larges water pump gets to take the most water
Larges food processing company in the world is Nestles.
Free water (6-11 cents to extract)

12. Nestles, Coke, Pepsi pump millions of gallons of water and sell it for 1900 times the cost of tap water.
World Bank –water market $800 billion
states in drought ---Pepsi pumped gal. and sold it back to the people.
Water industry argues .02% of water is drawn out of the ground.

13. Municipalities must make available water reports --- bottled water companies do n
50 billion bottles 80% go to landfills
World recycling rates approx. 50% --- USA 20%
11 states offer container deposits
17 million barrels of oil --- for production
Drinking 2liters of tap water/day --- costs you 50cents a year.
3min.

14. TECHNOLOGY + KNOWLEDGE = ECONOMIC BENEFITS
Knowledge Economy
TECHNOLOGY + KNOWLEDGE = ECONOMIC BENEFITS

15. GLOBALIZATION AND THE KNOWLEDGE ECONOMY CANNOT BE SEPARATED!
How is the knowledge economy a challenge to less developed regions?
Before less developed countries can compete in the knowledge economy they must have enough wealth to invest in technology
What had Alberta’s response been to this rising force of knowledge?
To respond to this knowledge economy AB has installed the SuperNet: it links government, educators, and health care in 422 communities

16. DISCUSSION TO PROMOTE KNOWLEDGE GOVERNMENTS CAN:
Develop education programs that nurture
Get people “connected” via internet
Develop technology
Stimulate innovation and creativity
Create security and confidence for businesses through legislation
Create knowledge filled websites for businesses and entrepreneurs
Bring about positive change in institutions that support the emerging technological society

17. The Darker Side of Outsourcing
The Gap
Workers in China,
Thailand,
Bangladesh,
and the Philippines
are forced to sign contracts.

18. The Darker Side of Outsourcing
The terms of these contracts require workers to give up human rights such as:
The freedom to join unions
The right to quit
Cannot attend religious services
Marriage is forbidden
Cannot get pregnant
Forced pregnancy test