Question

How is it possible that it is good for Canadian workers to be merged into a global labor pool where they must compete for jobs with workers on the other side of the globe that make less than ten percent of what an average Canadian worker makes?

answer must be 150-250 words

Answer 1

An increase in international trade and participation in the global market means that countries around the world become more specialized in order to maximize their comparative advantage which in the end results in lower costs for consumers across the board (Canadian workers also happen to be consumers).

Canadian workers also benefit since international trade allows Canadian corporations to increase domestic production in areas with significant comparative advantage thereby boosting employment domestically since Canadian firms have access to a much larger market. Trade also boosts productivity within Canada hence boosting the value per labor resource in Canada even further.

Even though the workers might be paid a tenth of what Canadian workers are paid, there exist several markets where the need for high skilled labor can only be satisfied by Canadian labor (developed countries have better skill development and education available for laborers). Canadian workers also stand to gain new knowledge, ideas, cultures and technical skills which further boost innovation and allow Canadian workers to become more efficient.

Canada also transitions towards more specialized industries as an economy which creates accurate signals for laborers entering the market which allows the new workers to acquire the necessary skills they need in order to remain relevant and employable.