Unit 3
Free Trade, Globalization, and the Internationalization of Corporate Domination

Introduction

Unit 3 explores the phenomenon and impact of globalization and free trade on the Canadian state and on the future of governance more generally. Is globalization as transformative as some analysts suggest? Are we witnessing the beginning of the end of the nation-state as we know it? Is the movement to more “market friendly” public policy and leaner social policy an inevitable consequence of globalization? Is free trade in fact part of a de facto “corporate charter of rights and freedoms”? These and other such questions lie at the heart of Unit 3. It will explore in greater depth various dimensions of the globalization debate and its relation to democratic governance.

This unit also provides an opportunity to evaluate the impact of globalization on the organization, activities, and role of the Canadian state. It begins by considering the meaning of globalization and its consequences for national sovereignty. Particular attention is paid to the relationship between domestic politics and international economic trends, changes in the characteristics of the Canadian state, and the scope for national politics.

Learning Objectives

When you have completed Unit 3, you should be able to achieve the following learning objectives.

  1. Explain what is meant by the concept of “globalization”
  2. Outline the relationship between North American free trade and globalization
  3. Discuss why business interests (especially transnational corporations) are most supportive of extending the reach of globalization
  4. Identify the major international trade agreements that have an effect on Canada
  5. Outline the social policy impacts of the push toward freer trade
  6. Examine the connection between neo-liberalism and globalization
  7. Explain the role that business-based policy organizations have played in promoting globalization and free trade friendly policy agenda in Canada and elsewhere
  8. Discuss ways in which democracy is challenged by globalization