Case 1 – Wireless Service Industry in Canada
- Bad customer service
- Restrictive contracts
- High fees (roaming)
- Not enough competition
- Foreign ownership restrictions
- Government allows foreign ownership of small companies
1. Why foreign ownership are rules a form or trade protectionism?
Protectionism protecting a country’s home sit economy through restrictions
(subsidies, quotas, tariffs)
2. How to the restrictions on foreign ownership conflict the notions of globalization?
Globalization (1) integration of world economies, (2) growth of FDI (foreign direct
investments) across the world, (3) lowering trade barriers, restrictions on foreign
wireless companies is a trade barrier
Why a company goes global? PUSH AND PULL FACTORS (gain market share – push)
Explain why government should not protect the existing players from more foreign
PROS: (Should) CONS: (Should Not)
- Healthy economy - Poor choices for phones for
- Jobs of employees in WC Canadian consumers
- Money reinvested in local - High prices (roaming fees)
community - Lack of innovation
- Limits business expansion overseas
3. What are three potential benefits and threats of Canada getting more multinational
(See Chart Above)
Case 2 – Beijing and the Canada Oil Sands
1. How does this case reflect themes of globalization
- Increased flow of goods and services across border (increased flow of oil from Canada to
- Greater economic independence
PUSH (External) PULL (Internal)
- Liberalization of trade laws - Access to oil
- Economy - Growth
1 2. How are the companies potentially affected by this takeover?
Who? PRO CON
CNOC - Access to oil growth - 15 billion, costly acquisition
NEXEN (CDN - risk
Oil) - Jobs saved - .
CDN Employ. - Jobs created/ taxes - .
CDN Econ paid - .
Local Eco - Easier access to CDN - Losing valuable resources
ec - potential for takeover
- Stay competitive
- New innovation
- Open market
3. The CDN government should protect CDN business from both foreign competition and
Define protectionism with reference to case study.
Case 3 – When good companies go bad: The Case of Kodak
1. What were the forces of change acting on this industry?
Commercial Imaging (Industry)
Forces of change: Economic, Global, Technology, Global, Labour, Social and Legal
Economic - Recession
Competition - More innovation digital (first to
market) competitors already took
first part of market
Global - Competitors entered global