International Competitiveness - Essay Sample

Introduction

International competitiveness measures the cost of services and goods in a country. However, when other countries have the same quality of goods but at a decreased price, the countries are more competitive. Competitiveness can become globally if tow or more nations are involved. The country under international competitiveness, in this case, is Canada. Competitiveness relies on various issues, such as the financial capabilities of a nation, the customer, and the labor market of the county (Chen, & Mintz, 2003). The main purpose of competitiveness includes factors such as profitability, productivity, and efficiency.

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Current Background

Migration is a characteristic of economic and social life in numerous countries. However, the profile or outcomes of migration varies considerably in different nations. For instance, in Canada, New Zealand, and Australia, employment or labor migration has a significant role. In the United States, migration labor makes up almost 47 percent of the total labor. Also, across Europe, 70 percent is the representation of the migration labor. Migration has international significance as it spurs economic growth in direct and indirect form.

Current Concerns

The family policy in Hungary concentrates on providing their citizens with a time to take off from work so that they can also look for their children. Results show that in mathematical skill or numeracy, Canada scored below the average compared to other countries. Canadians are terrible in math but may come in handy with computers. However, Finland's schools are becoming so successful. Finland has improved in reading, science literacy, and math over the past years. The motive for this is due to all schools in Finland are publicly funded, and every school has a national goal where they draw the university-trained educators from the same pool.

Strengths

Canada has the highest per-capita rate of immigration around the globe. Although resistance nay exists, Canada can expand immigration. Canada has a low exchange rate, which, when maintained, might result in brain drain pressure in the future. With a lower dollar, the number of Canadians moving to the USA will increase.

Weaknesses

Currently, the tax burden in Canada is approximately 45% of GDP. This government revenue is high compared to countries like Spain, the United Kingdom, Hong Kong, Japan, Iceland, the United States, Ireland, Switzerland, and Korea. The reason behind the higher tax burden is because the Canadian government pays little attention to tax policies.

Risks

Taxation in Canada can enact high costs on the economy, and at the same moment, it reduces productivity. The same kind of tax makes individuals reduce saving and hence raising the revenue.

Overall Summary

Global competitiveness assesses the cost of goods and services in a given county. Canada had an approximate of 45 percenter of the GDP. The reason why Canada has imposed high tax rates is due to little attention that is given to tax policy. In general, Canada is a country that is experiencing international competitiveness. Their tax, schools, immigration policies, and family policies have to be changed for Canada to be more competitive. The government of Canada should address their issues very wisely.

Conclusion

An inclusive reform of tax is needed in Canada to ensure the tax system is fair and efficient. These can be performed by reducing rates, including environmental tax, enlarging the bases, and be dependent on consumption and user-pay tax-related. The reduction in tax in Canada will encourage more savings and investment ad so these will enhance and raise the economic growth of Canada.

Reference

Chen, D., & Mintz, J. M. (2003). How Canada's Tax System Discourages Investment. Toronto: CD Howe Institute.