Shaping Labour Market Trends

Globalization

To globalize means to "make worldwide in scope or application," and the globalization of trade means freer and more intense worldwide trade across national borders. Technology helps to make globalization possible. With computers linked across companies, countries and continents, geography and time no longer weigh down the flow of information.

Canada is one of the world's main trading nations. Canada's wealth has been largely built on trade, which accounts for more than half of the gross domestic product, or more than triple the proportion in the United States. International political - economic agreements and organizations such as NAFTA, the World Trade Organization (WTO), Canada - Chile Free Trade Agreement and Asia Pacific Economic Co-operation (APEC) have increased international exports and trade balances.

Expanding globalization brings stiff competition for international markets. Increased competition has resulted from:

• the new market-based economies of developing and former communist countries;
• the introduction of new products and processes;
• more efficient use of old materials; and
• innovations in information technology.

These forces have transformed markets that were once regarded as a reliable source of earnings. For example, in the past, Canada prospered from its natural resources. But as resources and world prices have declined, the global economy has challenged this advantage by demanding more innovation, higher product quality and increased productivity.

Canada can benefit from expanding global markets in several ways. For example, infrastructure projects are always in progress in any rapidly developing country, so opportunities exist in the design and construction of electric power systems, water and waste facilities, telecommunications, subway systems and highways. Environmental technology will be needed in all developing countries before too long as will more sophisticated financial services.

Canada's evolving markets are also evident in the export of services. According to the Forum for International Trade Training (FITT), the technological innovations in communications and transportation that are helping to expand merchandise trade are also creating numerous new services and increasing trade in many others. The rapid growth of service trade is symptomatic of the emphasis placed on knowledge and know-how in today's international economy. Some services provided by Canada to other countries include research and development, engineering, management consulting and transportation services.

FITT also comments on the improved international opportunities for small firms.

Partnering with large firms has become a viable option for small firms to gain access to foreign markets. For their part, large firms are interested in forming strategic alliances with small ones in order to exploit their entrepreneurial capabilities and to pursue opportunities in market niches. In today's service and knowledge economy, small firms are better positioned to compete internationally. Falling trade barriers are making it easier and less expensive for them to serve foreign markets. Better communications and rapid travel have also made foreign markets more accessible (1999).

Surprisingly, few Canadian firms engage directly in exporting. Of about 900,000 companies in Canada, 100 of them account for 60% of the exports. And it is small- and medium-sized firms, by far, that undertake the majority of export business. Seventy percent of exports are accounted for by small companies (DFAIT, 2000).

Firms that upgrade their products or service, use technology skilfully, seek niche markets and revitalize their work forces will not only survive, but will prosper in international trade.

Implications for Career Decision Making

Free trade offers expanded markets to Canada and this means expanded job opportunities. Those looking for work should investigate growth export and import industries, and companies actively seeking to attract and support export businesses.

Increased global marketing has created a trend toward higher skill levels in demand in export industries. Export companies are looking for well-trained professional and sales staff, mainly with export management, computer and technical skills. To a lesser degree, marketing, languages and literacy skills are needed to fill vacancies. This may require returning to school for more education and specialization by those interested in working for businesses that export. Practitioners might encourage anyone in entrepreneurial occupations to specialize in:

• global entrepreneurship;
• international marketing;
• international trade finance;
• international physical distribution;
• international trade research;
• legal aspects of international trade;
• international trade management; and
• NAFTA and other trade agreements.

Note that opportunities for workers with different skill sets may be available in companies that provide services to firms in the export business, such as maintenance, packaging, or the transportation and storage of goods.

Katherine's Story: Creating Opportunity in Global Trade Sometimes, starting a small business in international trade is a combination of one person's enthusiasm and desire and another person's practical background. While Ed had the language skills and connections with an Eastern European country, and made many trips trying to "find" a product match for a business, Katherine was getting restless with her position in the education field. She began to take the FITT business program. She found herself getting excited because she could apply her lessons to the real life situation her partner was living. Katherine learned that, in the country they were scouting, the education level of the labourers was quite high, and their technicians were well trained. Her original background in science and work in an opthamology research department led her to investigate an optics company where she found very high-quality product at a competitive price. She and her partner decided this was it. They could build an importing business with the optics company for one of the products that was particularly in demand in Canada. What could the Canadians bring to the Eastern European company? Knowledge of infrastructure, administration and customer service, and global connections. Part of making global connections involved English skills and knowing what questions to ask, two things the Eastern European optics staff had yet to develop. Katherine continued to study as she and Ed built their business. Over several years, their import business grew into a successful endeavour by virtue of their willingness to work hard, creatively deal with unexpected problems and apply Katherine's formally acquired knowledge in international trade. When asked about the key factors for success in international trade, Katherine explained that connections, the ability to travel extensively and a second language were crucial additions to import/export business knowledge. And what about finding work as an employee in a global company? Katherine believes it is knowledge and experience in a specific field combined with knowledge from a program, such as FITT, that will provide the value-added package in demand by global companies. Forum for International Trade Training http://www.fitt.ca.

General Trends in Canadian Business Reorganization Partnerships - for efficiency - cost saving and labour saving. Sharing information and resources - to compete with international industries - companies, such as Hewlett-Packard, IBM and ICI (formerly CIL), hold seminars to train their suppliers and customers on total quality management methods. Independent bookstores across Canada have joined forces to compete with retail giants. Mergers, buyouts and spin-off companies become commonplace, as businesses choose the strategy that will enable them to compete. Finding a unique niche is more important than ever for small companies competing globally against corporate magnates. Training Initiatives Multi-skilling - learning to do several jobs to accommodate downsizing and take advantage of opportunities. Retraining every three to five years to keep up with technological changes. Managers helping workers plan their careers independent of the organization. More adult students. Training the trainers to keep their students up to date. National standards for certification across all industries to aid worker mobility. Partnerships between companies and educational institutions for co-operative education and internships as industries to recruit new workers to replace retiring employees. Structure Flextime, home-based work and non-permanent relationships. Learning new skills to get a pay increase and more challenging assignments but fewer vertical promotions. Team-based organizations. Flatter organizational structures. Home life and work life balance initiatives.