Globalization vs. Localization - Arbitrage Magazine - Nov 2012 by Arbitrage Magazine

GLOBALIZATION VS. LOCALIZATION HOW LOCAL CULTURES RESIST GLOBALIZATION IS GLOBALIZATION ERODING GOVERNMENT POWER?

SUMMER 2012

YOUR TECH GADGETS FUELING MASS RAPE IN CONGO

CULTURE

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JOB?

t!) i d n i f u pz yo l e h e W n. (Sure ca

careers. education. ideas. all of it.

EDITOR’S NOTE

Andi Kusuri

Editor-in-Chief Arbitrage Magazine To the Arbitrage Community: A defining event of the year has been the London 2012 Olympics. The beauty of the Olympics lies in its ability to gather people from all ends of the globe and make them witness the spectacular abilities of individuals as they compete on behalf of their country and showcase their nation on an international stage. This got us at the ARB thinking — what is the state of local culture and beliefs in the midst of rapid globalization?

identities of nations and cultivating a “global” community. It has redefined how communities and individuals communicate with each other. It has significantly changed how economies function, marked with increasing interdependence. At the same time, we find that local values, traditions, identities, and economies are being challenged — whether for better or worse.

As we know, globalization has played an important role in shaping the

We strongly believe that this theme is a powerful one, and we’re proud to say

that the ARB team has come up with some compelling articles that are sure to grasp your attention and make you think: Are we better served with stronger local identities? Does globalization make sense for economies, or does it promote increasing economic inequalities between countries? Do some countries benefit more economically from globalization than others — if so, why? What ethics, if any, are valid under globalization? With such clear disagreement on morals and ethics across the world, what ethics should govern

the ethics of countries and of individuals? What role should globalization play going forward? Working on this magazine has definitely opened our eyes to how rapidly the world has changed in the last few decades, and how the pace of change is only increasing. We only hope that, in reading this magazine, you may gain a better understanding — or at least a new perspective — of the world we live in.

Founder & Publisher David Alexander ARBITRAGE SUPPORT STAFF Board of Directors Samita Vasudeva, Garin Kilpatrick, Michael Manirakiza, Rabeea Wajeeha

Communications Director Monika Mistry

Assistant Communications Director Connie Ng

Communications Reps Fatima Ali, Maja Ulakovic, Delbert Williams

Social Media Managers

Marriska Fernandes, Ryan Hamilton

MAGAZINE PRODUCTION TEAM Editor-in-Chefs

Andi Kusuri, Akemi Liyanage

Managing Editor Shindusan Parameswaran

Co-Senior Online Editors Teng (Tony) Ge

Vice Managing Editors Exequiel Octavio Bertaina

Sectior Editors

Anna Marszalek, Samadrita Guin, Michelle Hampson

Online Editors

Katherine Nader, Liana Crocco, Kelly Townsend, Oxana Tsirelman, Chet F. Chung

Staff Writers Adrienne Beason, Khristopher Reardon, Siavosh Moshiri, Amarpreet Atwal, Megan Harris, Monica Cheng, Tejas Shah, Leigh McLaughlin, Maya Sokolovski, Maham Abedi, Catlin McKay, Lauren Murphy, Nazifa Islam, Herbert Lui, Laura Garzon Valdes, Amy Soden, Alexandria Chun, Tilly Wark, Caitlin MacLachlan, Roxanne Desouza

Chief Interviewer

Luis Fernando Arce

Contributing Writer Ellie Chan

Art Directors

Lily Li, Sophie Qi

Assistant Art Directors

Minji Seo, Brett Parton, Marie Siojo, Andrew West

Staff Designers

Julie Barkun, Adrien Mendez, Angela Song, Joseph Kong, Richard Bramer, Tim Walker, Corinne Chesher, Eman Faiz, Laura Prosser, Ryan James Terry, Jae Lee, Christina Lee, Azin Dilamghani, Ana-Maria Enescu, Atef Hossam, Yiting Zhang, Riley Schoonover, Summer Zhang, Elizabeth Apa, Claire Levesque, Sarah Sia, Ron Kelner, Katherine Chu, Weimar Lee, Cecile Carreon, Chloe Leung, Juliana Suave, Melissa Thanakone, Matthew Hunter, Mark Quimoyog, Tope Iona

Photography Director Jovan Milosevic

Staff Photographers Emily Scherzinger, Nadia Jolobova, Abad Mahava, Dan Campo, J茅r么me Simon, Mehreen Hussain, Jelena Subotic, Shelbi Noble, Tal Gertin, Brian Lockyer, Azra Kara, Rachel Fender, Isabelle Poirier, Shannon Evans, Megan Kamocki, James Lee, Sharon Sabharwal

FEATURES

IS GlobalizatiON Eroding

Government Power?

How LOCAL CULTURE

RESISTS GLOBALIZATION

CONTENT FINANCE & ECONOMICS

Unemployment Rises for Canadian Youth

BitCoins—A Decentralized Digital Currency

Credit Ratings Agencies

11 13

The Greek Debt Crisis—What Went Wrong?

Wise Ways to Invest Your Money

CULTURE

Where is forward?

Lost in Subtopia

Our High Stakes Blame Game

INTERNATIONL AFFAIRS

SCIENCE & TECHNOLOGY

The End of Books

Bypass Lengthy Download Times with Cloudpaging

The iPhone 5—To Buy or Not To Buy?

BIZ START UP

Is Self-Employment Becoming the New Mantra for Success?

Creating an Effective Marketing Campaign for your New Business

Profiling a Rising Start-up—Distilus

STUDENT RESOURCES

Successful Secrets to the World of Business

Are Your Tech Gadgets Fuelling Mass Rape in Congo?

How to Land the Job of Your Dreams

Women are Levelling the Playing Field between Themselves and Men in Business

Exploring Accounting Careers with Ernst & Young

Mind Over Matter

FINANCE & ECONOMICS

By: Khristopher Reardon, Staff Writer

The latest Labour Force Survey released from Statistics Canada shows a decline of 27,000 in the employment of the population between the ages of 15-24 for the fifth consecutive month. Compared to February 2011, the numbers in February 2012 show youth employment was down by 69,000. This trend in the labour market seems to be pushing younger people out of the labour market as their participation rate has falling nearly five per cent in the last three years. According to theglobeandmail.com, participation levels for younger workers are approaching levels not seen since 1995; many are just losing faith in the job market and are disengaging from it. Francis Fong, an economist for TD Canada Trust, released a paper about the disturbing trend in the employment number for youth. In his paper, he goes on to say that economic recovery for this fragile group has been nearly nonexistent. According to the document, only 1,300 net jobs have been added for the youth in the past two and a half years. This is exclusively affecting the youth as people over 25 are currently holding

400,000 more jobs than before the recession began. It includes people over 60, who are 'dominating' the labour market according to another release from Fong. Also, according to the latest Labour Force Survey released from Statistics Canada; employment for workers who are 55 years of age or older has grown by four percent in the last 12 months. This indicates that 24,000 jobs were added for this age group in the month of February alone. Those fighting to delay retirement are making gains, while those looking to enter the job market are falling behind. What is noteworthy is that younger Canadians enrolled in school have odd working hours, less experience and fewer skills to bring to new jobs. This is coupled with the fact that many older people are re-entering the job market and others who lost their jobs during the recession are taking jobs they would not normally hold. This means more competition for younger workers who don't necessarily have the extended resume of these older age groups. One example in the report points to the retail industry which has traditionally employed younger unseasoned workers in their camps, but they are now occupied by older workers aged over 60. Fong indicated in his remarks that the

ARBITRAGEMAGAZINE.CA Summer 2012

increased pressure in the labor market is pushing younger workers back to school to acquire newer and more marketable skills. However, the increase in debt and fewer stable working opportunities will mean less spending and impact home purchases for years to come for the younger demographic. The labour force aged between 15 and 19 were the most hit by the recession with 250,000 jobs lost since it began, while those 20-24 year old are seeing job numbers just below levels before the recession began. Canada's participation rate as a whole has slid to 66.5 per cent last month, which is its lowest level since April 2002. Additionally, the unemployment rate is down 0.2 per cent to 7.4 since to last month. Ultimately, these continuing trends are very problematic. In what has already been deemed as â&#x20AC;&#x153;the lost generationâ&#x20AC;? by some, youth graduating from university cannot afford for this trend to continue for a significant period of time. Its impact on future generations will be immeasurable. It will impact the skill set of our future workforce as many will be forced to take on jobs for which they are overqualified, which will decrease our competitiveness in a global marketplace. More importantly, it will have negative social effects, as many will simply give up on searching for work.

Illustration: Andrew West

Todayâ&#x20AC;&#x2122;s youth participation rate in the labour force has tumbled to levels not seen since 1995 with a current rate of 14.7 per cent exiting the job market.

FINANCE & ECONOMICS

BITCOINS: A DECENTRALIZED DIGITAL CURRENCY? A possible alternative to our growing financial crisis By Katherine Thorsteinson, Staff Writer In the wake of a global double dip recession the world is screaming ‘Show me the money!’ However, the response to this demand is widely varied. There are those involved with Operation Occupy Wall Street, those like libertarian Ron Paul advocating a zero percent income tax policy and reversion to the gold standard, and finally there is the more traditionally moderate position of slow recovery and little systematic change.

person to person via the net without going through a bank or a clearing house. This means that the fees are much lower, you can use them in every country, your account cannot be frozen, and there are no prerequisites or arbitrary limits.”

With all this opposition and disagreement the really interesting question becomes, what will this money begin to look like? Currently, things are not likely to change in this regard, but one very novel invention seems to be indicating where money may take us in the future. Can you imagine a totally decentralised digital currency? Welcome to the world of Bitcoins. In the spirit of anonymity upheld by this new currency, its 2009 invention has been attributed to the pseudonym Satoshi Nakamoto. But to whom this might be or to how many people this may include is entirely unknown. Bitcoins are an online currency which may be exchanged in a virtual value system with other users around the world. Bitcoin. org tells us that, “Compared to other alternatives, Bitcoins have a number of advantages. Bitcoins are transferred directly from

To some, this may sound like the perfect answer to many of our current economic difficulties in which the world’s greatest superpower relies on a Federal Reserve Bank that remains suspiciously not federal. But how exactly do these new Bitcoins work? Somewhat allusively, Bitcoin. org explains that “Bitcoins are generated all over the internet by anybody running a free application called Bitcoin miner.” To ‘mine’ your Bitcoin a certain amount of ‘work’ is required.

Concerns have been raised about the security of such online currencies in the face of growingly competent hackers

The network automatically adjusts the amount of Bitcoins earned per amount of work completed so that they are always being produced at a predictable and limited rate. To transfer your Bitcoins, the program adds an electronic signature, and within minutes this transaction will be certified by another member miner.

This entire transaction is then stored in the network permanently and anonymously. Because this software is open-sourced, anybody has rights to access the code. In spite of this explanation, for many this system will remain troubling and elusive. Indeed, difficulties have already surfaced. Due to a number of factors, including the currency’s short life-span and user uncertainty, Bitcoin continues to display a highly volatile rate of exchange into USD, and this problem is only amplified by the inability to make use of futures or options. There are a number of online businesses and exchange markets that are already accepting Bitcoin.

considerations. For all its novel interest and seemly good intentions, this currency remains somewhat of a play thing for those involved with or curious about computer programming and economics. Considering how drastically different Bitcoins are from our current system, it is unlikely for the moment that this ‘change’ is going to come.

However, different users are quoting widely different exchange rates for any given time, suggesting that value in the Bitcoin market is not so evenly distributed. More technical concerns have been raised about the security of such online currencies in the face of a growingly competent hacking community. Others have wondered to what extent Bitcoin is a viable alternative to our current financial crises. After all, critics ask, isn’t it troubling that our value system has strayed so far from the real, physical modes of production and service? It is unclear whether this new financial option could assess these more psychological Summer 2012 ARBITRAGEMAGAZINE.CA

FINANCE & ECONOMICS

Credit

written by : ellie chan , staff writer

photography : abad mahava

design: bebe zhang

Rating Agencies Just how much we should trust them?

As investors buy highrated assets and sell the downgraded, we must question the people behind-thescenes who set the standards, and the power they have over global investment

In the midst of continuing economic difficulty and seemingly careless decision-making by financial institutions, it has been easy for the media and society at large to place the blame on banks and financial institutions governing investments and trades. However, the reality is that, prior to the economic collapse in 2008, many of these institutions had high credit ratings. This is hard to believe, since numerous high-profile members of the business community were warning us about high-risk financial instruments being used carelessly by these same financial institutions. So then, why shouldn’t we place some blame on the credit rating agencies which, in essence, encouraged this careless behaviour?

ARBITRAGEMAGAZINE.COM Summer 2012

Well, it seems that we’ve begun to. The Congress is pressing on with its investigation on credit rating agencies and whether the firms overlooked crucial information that led to MF Global Holdings’ bankruptcy. The chairman of the House Financial Services subcommittee sent letters to the chief executive of Moody’s and the President of Standard and Poor’s (S&P) inquiring on the decision process that determined MF Global’s credit score. The United States is not the first to question the trustworthiness of rating agencies. EU leaders expressed frustration towards these firms in 2011 at the height of the Eurozone crisis. The three most influential

FINANCE & ECONOMICS

photography : shelbi noble

companies—S&P, Moody’s, and Fitch —grade government and corporate debt (AAA, as the top notch rating) by diving into financial documents and analyzing current events. The credit score aids investors in their decision to invest and improves transparency in the system. Few understand why these companies are as influential as they are, but they undoubtedly have enormous power over global investment decisions. Markets esteem credit ratings as one of the most important indicators of the quality of assets, and a downgrade from any one of these agencies can trigger a massive sell-off. As the referees on the sideline, who watch as events unfold and blow the whistle when needed, rating agencies have become one of the players who kicks the ball and alters the game.

They push investors towards decisions that otherwise may not have occurred to them. When EU member states were trying to contain the crisis last year, S&P, Moody’s, and Fitch downgraded European sovereign bonds at the worst timing: a few days before critical EU summits, or before bond auctions. They destroyed market confidence at the most crucial moments for Europe and because of these untimely downgrades, the rescue cost for Europe went up, and bond auctions yielded disappointing selling results. The importance we put on rating agencies is a mystery. We cannot forget that these are the same firms that freely gave out top ratings to worthless mortgage debt that led to the financial crisis in 2008. They failed the world economy then, and

their new-found status is ironic and almost wrong. Today, they stand as the accuser pointing fingers at corporations and countries that are in trouble, when only three years ago, they were the accused, shying away from the fact that they dragged the world into the worst recession since 1930. Rating agencies claim their reports as “opinion”, and we should treat them as such. It is illogical to allow three ratings companies, ultimately three Chief Executives, possess all the power to rock financial markets globally. They already did in 2008, and it has not been an easy ride since.

Summer 2012 ARBITRAGEMAGAZINE.COM

FINANCE & ECONOMICS

The Greek Debt Crisis:

WHAT WENT WRONG? Breaking down the problem written by : famadrita guin , staff writer photography : sophie qi

design: sophie qi

So, I’m sure that you’ve heard of the ongoing European financial crisis. Here’s a quick recap: 1. In the mid 2000’s, the Greek economy was one of the fastest grow ing in the Eurozo ne. T he government took advantage of this and spent extravagantly, running a large structural deficit. When deficits increase, the government starts acquiring debt in order to finance the country’s operations. With a steeply rising deficit, outstanding debts grew exponentially. 2. In October 2009, George Papandreou followed in the footsteps of his family

ARBITRAGEMAGAZINE.COM Summer 2012

FINANCE & ECONOMICS to become the Greek prime minister. After coming into position, he learned that Greece had been understating its debt for years. 3. Greece had joined the European Monetary Union (EMU) by downplaying its debt numbers in order to comply with the necessary requirements. Once it was accepted, membership meant greater ease in borrowing money. 4. When its actual debt was publicized, its credit rating was downgraded to BBB+. With an increased likelihood of a Greek default, investors demanded a higher yield on the Greek bonds they had purchased. This pushed up the cost of borrowing, creating an inescapable cycle. 5. These bonds were far spread and wide. If the Greek economy defaulted, it would be taking down all of Europe along with it. Many global banks and private investors in various countries were also being affected since they held a significant portion of the debt. 6. It was agreed that the only thing that could be done was to bailout Greece. The bailout involved huge loans from a specifically created fund called the European Financial Stability Facility (EFSF).

So then, what were the core problems that slowly led to a booming country turning into one where petrol bombs are thrown at the Parliament house on a regular basis?

would need investments, which can only be acquired through more debt. Greece was caught in a vicious cycle that could not be solved unless they used the bailout money, which ironically, simply worsened the situation.

The problem was founded in the Greek government decision to overindulge All that can be done for the future is during the economy’s expansion in the to hope that somehow Greece can get mid 2000’s, into spending money it back on its feet safe and sound. didn’t have, on public welfare. Also, However, the latest developments do 7. In return, Greece had to initiate tax evasion is vastly present in Greece. not look promising, which has placed some measures that were severely With an increase in government Europe at the centre of global attention harmful to the economy as a whole. spending, but a lower tax collection - once again. €530 million from health and pension rate, debts will obviously continue to funds, €400 million from defense, €50 build! Moreover, hiding the truth in million from doctors’ overtime pay, terms of concealing the debt figures and €80 million from education budgets was what made matters worse. If the were cut. The effect of these measures debt numbers had been out in the open has led to a current unemployment since the ver y beginning, other rate of an astounding 21%, with a preventative measures could have been suggested by either the UN World severe scarcity of jobs. Bank, or by other nations. 8. This has led to riots on a regular basis on the streets of Greece. Overall, Unfortunately, solving a debt crisis by the Greek economy continues to suffer. acquiring more debt is a recipe for If Greece defaults on the bailout loans, disaster. The only way this problem it might lead to a major financial could have been solved safely was if downturn in all of Europe, which could the Greek GDP was to grow exponendrag the Americas down with it, due tially, but that would take many years to happen. And, for GDP to grow, they to the globalization of assets. Summer 2012 ARBITRAGEMAGAZINE.COM

FINANCE & ECONOMICS

Your Money

Wise Ways to Invest

written by : oxana tsirelman , staff writer

photography : shelbi noble

design: summer zhang

These guidelines will help you choose where to invest.

When investing in an index fund, you should keep your transaction costs less than 2% of the value of the transactions

Many Canadians are currently struggling with how to wisely invest their money in order to retire with comfort. After all, any avenue is risky since you always have to decide which calculated risk is the best to take. Even so, the precarious nature of our current economy has increased the need for wise investments. There are some guidelines which could prove useful:

One potential avenue to consider is property ownership. After all, most people want to eventually live on their own. If you can retire in a location that does not require monthly rental payments or a mortgage is a sound option. Besides, if you can earn enough to buy a second house outright then you will be able to live in one and live off the rental from the other.

Try not to forget this fundamental rule in finance: What you need to do is weigh out the risk versus the potential return. The difference between saving and investing is that investing is much riskier but has a much higher potential rateof-return.

Another viable option to invest your money is in pension funds since the money goes directly back to you when you retire. The way it works is that you invest a certain amount from your current income in a pension fund for retirement. However, considering the current collapse of some

ARBITRAGEMAGAZINE.COM Summer 2012

FINANCE & ECONOMICS

photography : tal gertin

pension funds, you should exercise caution and consideration if pursuing this path. In addition, health insurance is an avenue many Canadians take. In the event of a large medical bill, your house and savings could be required to cover the costs. The savings mentioned above are likely the best way to go, but if you are prospering and can afford to take some risk, go with this option. Another good option is the Stock Purchase Plans since you are able to invest by little amounts. Investing small amounts of money through Dividend Reinvestment Plans (DRPs) or Direct Stock Purchase Plans (DSPs) enables you to purchase right from the companies rather than going through a broker. Countless

companies are offering this option and make it possible to invest as little as $20. Basically, these investments allow you to reinvest your dividends and slowly grow your investment. Lastly, investing your money in index funds works out well if you have several hundred dollars to invest. Basically, index funds find indices like the Dow, the Nasdaq, or the S&P500-an index based on 500 top companies in the main industry sector. Not only that, some indices, like the IRAs, let you invest as little as $250! The advantage of this option is that index funds is a low cost option since they find the index for you, which saves you high management costs. It also helps through diversification of risk, since these index funds often hold investments in several industries and types of companies. If you decide

to choose this option, be aware that the two primary ways to invest in index funds are through mutual funds or ETFs, short for exchange traded funds. ToInvestMoney.net asserts that “when investing in an index fund, you should keep your transaction costs less than 2% of the value of the transactions. So if you invest $500, you should ensure the transaction cost is no more than $10.” These are just some of the wise ways of investing money into your retirement. Before you make your final decision, just don’t forget to do a lot of research! Remember: an investment decision now can have a significant effect in your livelihood in the near and distant future.

Summer 2012 ARBITRAGEMAGAZINE.COM

CULTURE

A Different Type Of Globalization

Lost In Subtopia By: Mason Jones, Staff Writer If you don't know where you are, you don't know who you are.

meal I choose, it will have that branded taste - that McDonald’s taste.

or maybe it just makes us citizens of nowhere.

Wendell Berry - The Gift of Good Land

In critiques of 'globalization' we usually hear a lot of things about Third World debt, sweat shops and slave labour; and rightly so. These are indeed global issues; the globalization that I see in this case however, is the loss of place and national identity.

Writer H. J. Massingham commented on similar themes in 1946:

The meaning of one’s country is different to everyone who lives in it. Or at least that's what I’d like to believe. It's upon moving homes though that I really begin to think about it. A whole new area; new faces, neighbourhoods, communities and cultures to try and work out. Walking down the high street for the first time I don't feel particularly out of place; in-fact, I could swear that my feet have pounded this strip of tarmac a thousand times before. With a hunger pang and the rain pouring down, I decide to get a bite to eat. The street is busy with all ages and races of people, a familiar sight in any city, which in turn brings familiar commodities. If I'm to follow my gut instinct then all I have to do is clear the rain from my eyes and gaze either way down the old main drag. Before even having to squint into the distance, it appears before me, its logo glowing with a sense of reliability and normality. Its greasy smell summons me out of the downpour and straight into the checkout. There I don't even have to think about what I want to order, because I know that whichever

Whether my meaning of England is defined by the local pub, a village green, the canal-side or an old market town, it doesn't seem to matter. Culture seems to mean little in the face of development, growth, expansion or franchise, and it means even less when toe-to-toe with profit. The things that make our cities, towns and villages different from one another, the things that once created a sense of locality or culture are being steamrolled for the sake of the familiar, the identifiable and the investable. Nationality is being eroded and replaced with clean sliding doors and easily polished corporate chrome. This isn't a rant against progression, and I'd like to think that I'm not being overly nostalgic. Maybe the fact that I knew the McDonald’s restaurant would be close by shows the ease and accessibility of our modern landscape. Maybe it means we are citizens of everywhere,

ARBITRAGEMAGAZINE.CA Summer 2012

The Suburb, the building, the factory, the cinema, the government office,the department store.....these have no frontiers....Manchester might as well be Montreal, Stalingrad; Sunderland..... They are populations rather than persons. They do what their industrial economy tells them to do.

We are faced with a constant predicament: the drive for prosperity and development and also the desire to remain rooted to our natural identity. Whatever country you may live in, walk down any street and I’m sure you'll see the latter being overthrown and overwhelmed. A global market requires global tastes. It needs us to like the same things, and dislike the same things. It requires us to resist the urges of intrigue and exploration. We must look out of a hotel room window in any foreign city, see the neon signs and always, always, choose branding over culture.

CULTURE

WHERE IS FORWARD?

A reflection on the state of international relations and global ethics in 2011 By Hubert Ancelot, Staff Writer 2011 raised many ethical questions on various subjects. First, there was t h e i s s u e o f c o m p le x multilateralism, with the struggles faced by the people involved in the Middle Eastern uprisings and the Occupy protests. Both aimed at curbing the authority of the powers instated. Women’s efforts for equal status also gained much attention last year. Recently, the world has taken considerable steps towards giving women more rights, both in parts where this progress was foreseeable and where we didn’t expect it to happen. It’s a changing world, but will it become a platform of universally accepted ethics? In other words: where is forward? The Middle Eastern uprisings r ais e d t h e follow ing questions in the field of international relations: who should we listen to? Is it the people or their leader? Is it legitimate for us to intervene in a country’s internal affairs? One can argue whether the NATO strikes on Libya were an affirmation of global ethics, but international law is clear: there was evidence civilian populations were under threat, hence the need for intervention.

The concept of the Responsibility to Protect ( R 2 P) w a s d e v e l o p e d by the UN in 20 05 and affirms the responsibility for governments to protect their population from g e n o c i d e, w a r c r i m e, crimes against humanity, and ethnic cleansing. R2P was designed as a response to Rwanda, Bosnia and other struggling nations. The norm stipulates that the international community has the responsibility to assist the ‘irresponsible’ country in the fulfillment of its duty. Although much progress towards a unified covenant fo r t h e p r o t e c t i o n o f civilian populations was made, the decision-making structure of the UN Security Council is limiting any efforts in the case of Syria. China and Russia responded angrily to Hillary Clinton’s comments on the position of the two countries over Syria, characterizing it a s ‘de spicable,’ w hile only arguing the case for economic sanctions on the country. The resurgence of realism in the doctrines of many countries ultimately inhibits the urgent application of ethical procedures already set up by international bodies of law.

2011 was also the year that saw Liberian activist Leyman Gbowee, President Ellen Johnson Sirleaf and Yemeni journalist Tawakel K a r m a n. The three are women w ho to ok par t in non-violent struggles for peace. Karman, who questioned her government’s actions in her newspaper, was the youngest person an d s e co n d M u slim to receive the award. She eventually proved to be an influential proponent for the re signation of President Saleh within the Yemeni elite and the international community.

are harsh. The case of Shaima Jastanyia particularl yattracted the attention of the media, when the 34-year old woman was sentenced to 10 lashes by court for driving a car in the fastgrowing Jeddah. The reality is that change is on its way, and it will hap p e n fa st. Fo r w ard will never completely be the same direction for everyone, but there is a tangible feeling that the field of global ethics will prove much simpler in the future decades as people regain their power and voice their own ‘forward.’

The emancipation of what T h e Hin d u n e w s p ap er call s ‘the O ther Half’ is especially visible in developing economies. South America has recently seen women occupying the top positions of different states: Bachelet in Chile, Kirchner in Argentina, Rousseff in Brazil. It was Saudi Arabia that shocked the world in September 2011 by announcing it would introduce women to i t s Consultative Assembly by 2013. The country is seeing a considerable change with women protesting for their right to drive cars, possess a proper identification system and refuse polygamy. Progress is slow, and sentences Summer 2012 ARBITRAGEMAGAZINE.CA

CULTURE

Our High Stakes

written by : adrienne

Blame Game

Beason, staff Writer

photography :ron kelner

design: ron kelner

How idiot-proofing can threaten lives

Even when a person’s life is in danger, the paramedic is at risk of facing financial ruin if they choose to use a medical technique unapproved by the patient’s guardian

We’ve all heard about ridiculous lawsuits. But is liability raising the stakes of our decision to live or die? All of these cases reflect a generation of p e o p le w h o re fu s e to t ake responsibility for their own actions. The belief that it’s always someone el s e’s fault ha s allowe d fo r a complete dumbing down of society. Chris, a paramedic with the British Columbia Ambulance Service can speak to the extremes to which our law suit- o b s e s s e d cultu re have dragged us. “My partner and I have had comments when we’re on duty that make us very leery of what we do,” Chris says. He informed us of a baby having seizures due to a fever. The mother declared that if they did

ARBITRAGEMAGAZINE.COM Summer 2012

anything to hurt her baby, she would sue them. “As bad as it is to say, we did the absolute minimum within our protocols to keep this child alive...It’s horrible...but on the other hand, I don’t want to go to jail or be poor forever.” H e o f t e n h e a r s a b o u t fe l l o w paramedics being sued – sometimes successfully. Even when a person’s life is in danger, the paramedic is at risk of facing financial ruin if they choose to use a medical technique u n a p p r o v e d b y t h e p a t i e n t ’s guardian. Therefore, in a world where the outcome of a legal battle can alter life irrevocably, liability issues force paramedics into complex moral dilemmas.

CULTURE

photography : tal gertin

Chris speaks of a young man who crashed his car into a median on an A l b e r t a h i g h w a y. H e a n d h i s colleague came upon him while off duty and stopped to help. He did his best to save him, but ultimately, the man died as his brain swelled up inside his skull. Afterward, the man’s family took him to court on the grounds that the steps Chris had taken directly contributed to the death. “The contributing cause to this kid’s death was that he was dr iv ing carelessly and hit a median. That’s what killed him. Not what we did to try to save him.” Ultimately, the prosecution could not prove that Chris had made a fatal move. He was vindicated.

perform only basic first aid while off duty.

In off duty circumstances, Chris says, “[Often] my skill set, my scope of practice would allow me to easily save somebody. However, covered under the first aid laws, he can

“I think they just want to make someone else suffer in the way that they are suffering because they feel that will make it even out.”

“Worse comes to worst, I give somebody an intervention and they die, but I was doing it at my scope of practice as a paramedic, then I’m not covered [by insurance]… I can save this guy’s life and I can take on a whole lot of risk or I can do the bare minimum and say, ‘hopefully it works out for you, buddy.’” In cases where family members sue well-meaning paramedics (on or off duty) after loss of life, disablement or other circumstances, Chris can, in some ways, see where they are coming from. He believes it is part of the grieving process.

So what got us here? Many believe that it is the abundance of law yer politicians that pour money into par ties to prevent lawsuit reform. But blame also falls with the legal system for setting the precedent of entertaining these cases. In the name of self-interest and our best efforts to deflect blame, we have created a toxic culture. This becomes harder and harder to deny when liability issues even prevent us from saving lives. The irony is that so many lawsuits are apparently based on the desire to correct safety concerns. As we go into the future and our populations expand, who is going to accept the risk? And who will accept the blame?

Summer 2012 ARBITRAGEMAGAZINE.COM

INTERNATIONAL AFFAIRS

Are Your Tech Gadgets Fuelling

Mass Rape

in the Congo?

written by : roxanne de souza , staff writer

photography : minji seo

design: minji seo

How You Could be Linked to Violence Against Women and Girls in Africa

Approximately 12% of the country’s women experienced rape at least once in their lives

With approximately 48 cases of sexual violence each hour, it’s easy to understand why the Democratic Republic of the Congo (DRC) is considered the “rape capital of the world.” The ongoing conflict in Eastern DRC has been recognized as the deadliest war since WWII and has led to widespread casualties, mass displacement, and endemic sexual violence against women. Why has such a devastating conflict persisted so relentlessly for over a decade with no signs of abating? And perhaps more importantly, have we implicitly played a role in these atrocities half a world away?

countries in the world, the DRC is a crucial source of precious minerals including copper, gold, and diamonds. The theory of the “resource curse” was coined by Richard Auty in 1993, and suggests that mineral wealth can lead to poverty and conflict. This concept of the “blood diamonds” has gained attention in popular culture, and was sensationalized through a 2006 Leonardo DiCaprio film of the same name. By linking demand for diamonds to civil war in countries like Sierra Leone in the public psyche, consumers became more cognisant of purchasing “conflict-free” diamonds in recent years.

Coltan: The New “Blood Diamond” As one of the most resource-rich

The ongoing war in the DRC has similarly been attributed to the

ARBITRAGEMAGAZINE.COM Summer 2012

INTERNATIONAL AFFAIRS

abundance of another precious mineral: coltan. Despite the fact that many North Americans are unfamiliar with coltan, chances are that they routinely use devices containing this valuable mineral. As a fundamental component in microchips for cell phones, laptops and tablets, coltan has become an integral part of our increasingly interconnected world. The conflict in the DRC is largely fuelled by intrastate conflict among groups competing for access to lucrative mines of valuable metals like coltan, of which 80% of the world’s supply is in Congo. Silent Victims The conflict in the Eastern DRC has gained significant attention from the media and international community. The pervasive sexual violence against women and girls in particular has resulted in a public outcry against mass rape. For many women in conflict-afflicted regions, sexual violence is a glaring reality, with approximately 12% of the country’s women experiencing rape at least once in their lives. Unfortunately, raped women are often ostracized among their own communities, sugg-

esting that the actual incidence of rape is much higher. One of the most succinct depictions of this devastation is “The Greatest Silence,” a documentary which illustrates the physical, social, and psychological impacts of the pervasive sexual violence. Due to pervasive patriarchy, victims of rape are rarely given a voice among their peers. Instead, they are often expected to accept the potential for violence, and simply “avoid” rape or risk rejection from their families and communities. However, the mass rape in the DRC shows no signs of abating, especially considering the value of coltan among the armed groups perpetrating violence against women.

to purchase “conflict-free” devices if and when they are made available. Raising awareness among the general public concerning the current situation in the Congo therefore remains critical in creating consumer accountability. The political situation in the DRC undoubtedly remains more complex than reducing the demand for coltan. However, in refusing to condone rape in the Congo by making informed consumer decisions is the first step toward raising awareness about this devastating conflict in the heart of Africa.

Moving Forward Given the alarming link between the DRC’s mineral wealth, widespread rape, and Western technology, strong movements have emerged to reduce consumer demand for coltan. However, it is unrealistic that consumers will boycott cell phone usage entirely in protest of rape in the Congo. They are far more likely Summer 2012 ARBITRAGEMAGAZINE.COM

INTERNATIONAL AFFAIRS

Playing Field

Women Are Levelling the

written by : oxana tsirelman , online editor

photography : dan campo

design: bebe zhang

Between Themselves and Men Times are changing for women in the UAE

In the triumvirate of elite professional educations, women represent 50% of the students in law and medical schools

There is a growing trend in the United Arab Emirates: an increasingly higher number of women are entering the playing field. Aya Lowe, staff reporter from the online publication Gulfnews.com, cites that 30% of small and medium businesses in UAE are run or owned by women. That is a significant figure, given the region’s traditional practises and customs. And according to Shaikha Budoor Bint Sultan Al Qasimi, Chairwoman of the Quasba Developmental Authority, “Women play a central role in the development of the society and in building nations, as they complement men’s role in boosting economic development.”

ARBITRAGEMAGAZINE.COM Summer 2012

“The status attained by UAE women in all fields has enabled them to participate in the nation’s development on an equal footing with their male counterparts in many fields,” she said. The days where women take care of matters pertaining to the household while their husbands bring in the pay cheque are gone. Times are definitely changing; after all, 20 years ago women were expected to cook and clean. Today, women have established themselves in the UAE workforce and they are beginning to position themselves as leaders in business. “Women are now pursuing professional ambitions—climbing up the corporate ladder or working from home in order

INTERNATIONAL AFFAIRS

photography : azra kara

to earn their own income, help their husbands financially and live the life of their dreams” noted Mavis Nong. What is fascinating about female entrepreneurship is that many of these women developed a skill set they can apply to the business world from their household tasks. Beyond using their practical experiences to get a fresh perspective on the world of business, women are also encouraged to go to business schools to streamline their path to the professional world. “In the triumvirate of elite professional educations, women represent 50% of the students in law and medical schools. But most of America’s top business schools are stuck at a female student proportion of around 30%. Levels are even lower, hovering between 20- 25 %, at elite

European schools like INSEAD, IMD or IESE,” cites the European Professional Women’s Network. Thus, even with the advancement of businesswomen in the UAE, much has to be done to increase the involvement of women in the international business sphere. Another interesting observation is that women seem not to be driven so much by money, status and competition as are men. In fact, a Wall Street Journal survey conducted in 2003 found that women are commonly driven by the content and interest of their jobs. That explains why women are drawn to more value based professions such as law and medicine. But Stefanie Hughes pointed out that this is not consistent with all women, “While some stereotypes dictate that women who earn MBA

degrees use their business education for humanitarian purposes rather than financial gain, new research suggests that businesswomen now want the same things as their male counterparts.” Annaleigh Greene, an MBA graduate from Concordia University’s John Molson School of Business told a news source that “generally, women don’t just look at the bottom line in terms of what their salary is,” and could likely request “an extra week of vacation, flexible hours or a compressed work week” than a raise. It is clear that women have come a long way from their gender stereotypes. But there is still a lot of do to ensure gender equivalency in the workplaces within the UAE and the world.

Summer 2012 ARBITRAGEMAGAZINE.COM

SCIENCE & TECHNOLOGY CULTURE

written by : sarah taylor , staff writer

photography : sarah sia

design: sarah sia

3% of e-reader users claim they read more now than prior to owning one

The End of Books Print book sales continue to decline in face of their digital counterparts

Printed books may soon be a thing of the past. E-books now outsell their print versions two to one. The demand for digital books has hit bookstores hard. In December 2011, the book giant Barnes & Noble reported a $6.6 million loss due to a major decline in book sales. It is clear that E-readers and tablets have caused a major shift in the way we are consuming books and print media. Libraries have also taken a hit. Funding cuts combined a decline in demand for printed books have seen libraries across the globe shutting their doors. Technology seems to have overtaken the need for public book sources and librarians as well. In 2011, Vancouver’s library budget was

ARBITRAGEMAGAZINE.COM Summer 2012

cut by $1.6 million, while Nova Scotia saw the last of their school librarians laid off. British Columbia is following suit, laying off nearing all their school librarians. According to the Canadian Library Association “…given today’s technology, the teacher-librarian no longer has a role to play in the school.” Canadian author Margaret Atwood has launched a “Save the Libraries” campaign, inspired by the suggestion Toronto’s Mayor to close numerous public libraries. Her online petition has gathered thousands of signatures, but the future of Toronto’s busy library system is unknown. Privatization of libraries is also a viable option, as many city and municipal councils no

SCIENCE & TECHNOLOGY CULTURE

photography : sarah sia

longer recognize the importance of libraries in the community. Although e-readers and e-books are expensive, their high prices are not deterring customers. The print version can often be purchased for much less than its e-reader counterpart, but there is growing tolerance of these high prices due to the falling prices of the e-readers themselves. When Amazon first introduced the Kindle in 2007, the price was a hefty $399. But the latest version retails at $109. E-readers are user-friendly, compact and light. They hold magazines, newspapers, books and weigh less than a bottle of ketchup. E-readers allow even the most controversial works to be downloaded and shared, defying censorship. Many praise the eco-friendliness of e-readers, although this is an active source of debate. For self-published authors, releasing

an e-book can be a quick and easy road to success. Just as YouTube launched music careers, e-books are enabling authors to reach a wide audience at a small cost. Amazonâ&#x20AC;&#x2122;s CreateSpace website allows authors to publish and distribute their work digitally, and gain royalties from downloads. It even links the book to amazon.com for easy downloading and purchase, and allows customization of the book appearance, print and size. For consumers, e-readers and tablets may actually promote reading. In a recent American study, 53% of e-reader users claim they read more now than prior to owning one. The aspect of social reading, i.e. sharing quotes and thoughts via social media may have reignited a passion for literature and non-fiction. Dictionary tools allow quick understanding, and images and animation add entertainment value. There are even plans for a Japanese designed Braille e-reader. For

those with mobility issues, trips to the library or book store are no longer necessary. E-readers offer accessibility to reading that print books simply canâ&#x20AC;&#x2122;t compete with. To stay competitive, book stores are embracing the e-book trend. Chapters offer the Kobo e-reader with a full range of accessories, and the successful Barnes & Noble Nook Tablet has managed to offset low print sales. A good business knows the key to long term success is adapting to changing times, and it seems that e-readers are here to stay. However, book chains offering e-readers may be promoting the very item that will seal their fate. There is no arguing the convenience of digital books, but print literature is an integral part of our history. E-book technology is quicker, cheaper and easier, but are these advantages worth losing our literary heritage?

Summer 2012 ARBITRAGEMAGAZINE.COM

SCIENCE & TECHNOLOGY

BYPASS LENGTHY DOWNLOAD TIMES WITH CLOUDPAGING Technology allows you to stream software directly to your computer By Herbert Lui, Staff Writer Evernote, Google Docs, and Dropbox have already shown us just how convenient and powerful the cloud can be. You no longer have to worry about losing files or syncing them up manually. Even collaborating with other people online became much easier with these applications. Now, you may never have to download or put software onto your hard drive ever again. Cloudpaging technology offers an alternative to the status quo; it gives us the ability to stream software directly to our computers, bypassing the often lengthy download time. For example, cloudpaging will allow you to preview games before you buy them, without having to download a trial version. CAN’T WE ALREADY DO THAT? There is a method of streaming games called “pixel-streaming” which involves streaming and buffering from a server to your computer. However, there are various problems with this current method. For example, it is difficult to scale because it forces server capabilities to grow with demand. It also requires a huge bandwidth; upwards of 3GB/hour for a video game! Your internet service provider would drool looking at your bill. WHAT IS CLOUDPAGING? Cloudpaging is a technology that allows you to stream applications to your computer. Where ordinary

streaming is great for linear media such as music, it isn’t as suitable for nonlinear media like software. Cloudpaging software automatically figures out which pages are needed first for the download of the software so that users gain access to the downloading software faster. For example, it only takes 6.5% of Photoshop to perform basic image modification. Cloudpaging pione er Numecent aims to download this particular 6.5% of pages first, so that you can perform basic image modifications with Photoshop. Numecent’s software will then continue to download Photoshop in the background, and previous pages it already downloaded will be cached for quicker access. If you’re interested in more technical details, you can find them over at IDG. WHO’S BEHIND NUMECENT? Numecents’s CEO is serial technology and media entrepreneur Osman Kent. Kent has a pretty unique track record, having created a company called benchMark which he sold to DuPont. He then purchased benchMark back from DuPont, and re-named it 3DLABS (now known as ZiiLABS), and then sold it again to Creative Labs. Kent is also responsible for Songphonic Records. REAL-LIFE APPLICATIONS OF CLOUD PAGING You’ve already seen someone

ARBITRAGEMAGAZINE.CA Summer 2012

playing Unreal Tournament on their tablet. But things will go past remarkable with cloudpaging. Imagine: we can now check applications out like books at libraries. Freelancers can afford to buy fewer copies of much needed software, people wait less for their software to download and companies have a legal alternative for making their own software more accessible. IS THE WORLD READY FOR IT? Honestly, I can’t really say. I think that cloud computing is still very much in diapers. But I definitely know that people aren’t comfortable in not having a hard-copy of software, and that they aren’t too keen on relying on one service provider that has the key to all their software. (To illustrate people’s paranoia (including my own): How many people are averse to using FourSquare because they don’t like the thought of everyone knowing where they are or are not?) . Once progress is made on making people more comfortable with cloudpaging, it will definitely spread around the world. And according to their promotional video, Numecent has already partnered up with 11 universities and distributed over 3 million copies of AutoCAD (yowza!) to one of their clients. Will cloudpaging go the way of Oracle’s network computers? Or will it join eyeOS and Jolicloud in

ushering the new age of cloud computing? Get ready, world. The future awaits.

SCIENCE & TECHNOLOGY

The iPhone 5:

TO BUY

OR NOT TO BUY? Appleâ&#x20AC;&#x2122;s game changer or disappointment? written by : samadrita guin , staff writer photography : sophie qi

design: sophie qi

The iPhone series continues to be an element of intrigue. The level of enthusiasm among prospective consumers and the increase in their purchasing power has never ceased to amaze me. The huge line-ups outside of Apple stores, as replenishments are ordered by Apple employees on an hourly basis, are an astonishing sight. So, now for the big question: should you or should you not buy the iPhone 5? If you are currently not an iPhone owner, should you convert and cross over to Apple? If you are currently an iPhone owner, is it worth spending those extra bucks on the latest

ARBITRAGEMAGAZINE.COM Summer 2012

SCIENCE & TECHNOLOGY out a patent application that would allow them to utilize the frame space around the screen as part of the actual touch screen, which could add an approximate 5 millimeters to the screen size. This implies additional finger space for angry birds! So will the iPhone 5 have a bigger screen? Possibly. However, do keep in mind that there are many other reports out there that depict contradictory information. A thinner model One of the main goals of Apple is to make faster, more advanced products in a thinner body. Rumors say that Apple is planning a breakthrough in the hardware design of the iPhone. The main source behind this rumour is the fact that a company called “Case-Mate” uploaded pictures of some iPhone 4S cases, along with some cases that could potentially be created for the iPhone 5, but were taken down hours after their release. Again, this is simply speculation around the online tech community, nothing is set in stone as of yet.

of the A6 processor soon, so there is a chance that it will be used in the iPhone 5. RAM sizes are also expected to increase with the launch of the new product. If we are being optimistic, an increase of 1.5 to 2 gigs could be expected but, conservatively, an increase of 1GB would keep Apple competitive. Apple’s iCloud storage is also expected to increase for the new model. In conclusion, there appears to be many things to look forward to, but these are still rumors. Finding information about the iPhone 5 is particularly difficult given Apple’s strict control of information. All we can do is to hope that Apple holds true to its expectations and releases a phone that will make you want to line up outside their store for hours just to get your hands on it.

A Larger/Square Home Button A rumour circulating from “spyshots” from case manufacturers also hinted the existence of a square home button that is quite different from the current circular one.

model? What enhancements will make you want to loosen your wallet and invest in the new iPhone 5? After reading numerous tech blogs and news articles, I have come across some rumours about the gadget that might help you make your decision. Larger screen size All previous iPhone models have had a similar screen size that is roughly 4.5 inches long 2.5 inches wide. Unless Apple introduces a radical design change, many would expect the iPhone 5 screen size to remain the same. However, Apple filled

A new camera Images leaked from the iPhone 5 production imply a larger camera, with an offering of 8 megapixels. 8 Megapixels do offer a moderate quality of imaging, which could mean that Apple is competing against small and cheap camera manufacturers. There is also serious debate about the existence of a dual LED flash. Some reports suggest an additional LED flash for the front camera, while other deny it. iPhone 5 processor and memory The iPhone 4S and the latest iPad 3 are powered by the Apple’s A5 chip. Apple is expected to start production

Summer 2012 ARBITRAGEMAGAZINE.COM

BIZ. START UP

Is Self-Employment Becoming the New

Mantra for

written by : shelly verma , contributing writer

illustrations: julie barkun

design: julie barkun

Success? Why people choose this route?

Some companies actively seek contract employees to fill positions

How many self-employed people do you encounter on a daily basis? Chances are they could be freelance writers, home cleaners or online retailers. Then again, most of these jobs have been available for the past decade. If this is the case, why do people believe that self-employment opportunities are on the rise? Why Do People Turn to Self-Employment? People are turning to self-employment not as a career, but a good way to make ends meet. It is estimated that people doing odd jobs and working at home have contributed to the recent rise in self-employment. They are generally unemployed due to the economy being in recession

ARBITRAGEMAGAZINE.COM Summer 2012

and are desperately trying to find employment to support their families. Also, they may be working in these types of jobs, while searching for another full-time job. In fact, the unemployed are not the only people considering selfemployment. Some companies actively seek contract employees to fill positions. A number of large media businesses lay-off regular employees in favour of freelancers as a way to save on the costs of benefits, unemployment and taxes. So What Kind of Jobs are People Doing? There are several ways to be selfemployed. The most popular avenues

BIZ. START UP

include cleaning homes, gardening or even babysitting. These make up the majority of self-employment opportunities. Those that are more serious about self-employment may be working as freelance writers, website designers, net-marketers or even professional blog writers. From my point of view, freelancers are better for the economy than regular employees. They only get paid when work is available, so the reduced labour costs allow businesses to better adapt to market changes. Also, freelancers constantly have to work harder to prove their worth for the employers. Although freelancers might have a more unstable income, they have a better work life balance and greater job satisfaction than most regular employees.

So the answer is that self-employment is definitely on the rise. However, in many cases this isn’t a person’s first choice. People become self-employed due to an economic recession and massive layoffs that leave them with limited financial options. They usually choose odd jobs to make ends meet, while looking for a more permanent solution. Unfortunately, in today’s economy, odd jobs may soon become the main or even sole source of income for those seeking a source of revenue.

Self-employment creates parallel employment opportunities. Entrepreneurship is like a root sprout; everyone should water one’s imagination and nurture it for growth.

Most people on the self-employment road are doing so out of desperation, necessity – and generally not because they have an amazing idea or have been inspired by their entrepreneurial spirit. The economic landscape is scattered with freelancers, online business, consultants and one-man contractors earning less than they did as full-time employees.

In the short-run, you need to realise that you will be highly dependent on your individual abilities and talents. It could be quite rough the first few months or even most of the first year. Hence, keep some money stashed away because you need to first be established before you will be able to make money for yourself.

It is easy to think about leaving our job and becoming self-employed because we have a good idea, although we all have commitments and bills to pay every month. The question is: what preparation do I need to do to get me in proper shape to pursue that self-employment idea?

Summer 2012 ARBITRAGEMAGAZINE.COM

BIZ. START UP

Creating an Effective Marketing Campaign for Your New

written by : sara mackey, contributing writer

photography : claire levesque

design: claire levesque

Small Business

Are you developing effective marketing strategies?

The first step to leading a successful marketing campaign is to create a solid marketing plan

Developing good marketing strategies for your new business is essential to its sustainability and long-term success. An effective marketing strategy employs a method that communicates why consumers should choose your business instead of the competition.

MARKET RESEARCH If you want to find your niche market, market research and analysis is necessary. In doing so, you will gain valuable perspective on who your customers are and their needs. You need to determine what is in demand in order to supply it sufficiently.

The first step to leading a successful marketing campaign is to create a solid marketing plan:

KNOW YOUR COMPETITION Knowing your competition is equally important as knowing your customers. Figure out ways to capitalize on their weaknesses, emphasize your strengths and set yourself apart from them. A good marketing strategy will promote your business, and a great one will give you the edge over your competition.

TARGET MARKET No business can fulfill the needs of all customers. Knowing who you are selling to can help you create a marketing strategy that communicates more effectively to your target customers.

ARBITRAGEMAGAZINE.COM Summer 2012

BIZ. START UP

photography : claire levesque

BRAND STRATEGY Your brand is everything you promise to deliver to your customers through your business. At the heart of branding is the logo. The logo is the first impression of your business to your customers. When you brand your business, you can start to build brand equity which raises the intrinsic value of your goods and services. BE CONSISTENT Do not start advertising your business until you have mapped out a consistent marketing campaign. The time for testing out different logos, slogans and methods is during the market research phase, not when you are actually ready to begin marketing your new business.

HAVE ADEQUATE FINANCING Many new businesses fail to realize the importance of marketing and do not allocate enough capital to fund an effective campaign. A new business does not usually have vast amounts of money at their disposal, but in order to start generating a positive cash flow, you have to get customers to want to buy from you. That is why good, persistent marketing is so valuable for a new business. Creating an effective marketing strategy is time-consuming and challenging, but it is well worth the effort as it will bring in valuable customers.

Summer 2012 ARBITRAGEMAGAZINE.COM

BIZ START UP

Profiling a Rising Start-up: written by :

Samanditra Guin, Staff Writer

photography : from www.D istilus .com

design:

Tim Walker

Distilus

Website brings together information on spirits from all over the globe.

One advantage in using the website is the fact that it is synced with LCBO’S inventory database

One of the biggest opportunities offered by the City of Toronto is the possibility of creating a new company. Distilus, a Toronto based start-up established in 2009 by Ryerson U. graduates, is a website that promotes of a wide variety of distilled spirits. The site contains the largest selection of distilled spirits in the world, providing over 1300 listings from over 100 countries.

every product page accompanied by information about the price and retail location of the spirit, regardless of the customer’s physical location in the world. Currencies are adjusted automatically to reflect your location as you browse through the product listings. Whether you are in the United Kingdom, Germany or Canada, the website provides a listing of the retail locations nearest you.

One advantage in using the website is the fact that it is synced with LCBO’S inventory database, which allows customers to view which of the nearest LCBO locations have their choice of distilled spirits in stock. Another amazing feature of the website is the option of having

The Distilus is a group of highly motivated Ryerson University Alumni, who have a reputation in entrepreneurship. As a staff writer for Arbitrage Magazine, I had the chance to interview one of the website’s founders, Marc Molinaro, to discuss the potential future of Distilus.

ARBITRAGEMAGAZINE.COM Summer 2012

BIZ START UP

Q: What is the inspiration behind this entrepreneurial venture? A: The first reason that we started this was because we couldn’t really find anything online that was anything close to our concept. We really wanted to bring together all these distilled spirits, just to share it with the rest of the world. Usually, when people find a website, or are trying to find a specific product online, they are displayed pretty randomly all over the internet. So we kind of wanted to just bring it all together, into one easy-to-use archive..

Q: What would you say is different about your website that distinguishes it from similar services and allows it to build a bigger clientele? A: For people in Ontario, we have it linked to the LCBO, so people can find

their products in real time, specific to their location, listing all the stores and prices nearby. We also implemented the new pricing application a few weeks ago. So, you can search over 4 million price listing around the world, based on your location. And this website is always evolving, so that’s what distinguishes it, in terms of the pricing application, and its functionality.

Q: Do you have any plans to expanding this website into anything new? A: We want to incorporate this idea into a whole food and beverage group, so that’s what our plans are. The Distilus archive would just be one section, but we’re looking to make an entire company out of it. We’ll see what it turns into. We really want to make Distilus the number one site in terms of the websites catering to distilled spirits.

Q: What is your favourite part of being a part of an entrepreneurial venture? What advice would you give to aspiring entrepreneurs out there? A: You’ve got to have the passion to never give up. I mean, we all met at Ryerson, so that was a really big part of it. I graduated three years ago, so that my main inspiration was out of university, where I took a lot of entrepreneurship classes. Hearing the stories of what other entrepreneurs have done, about how they built their companies up, was something that was really inspiring. Start-ups are the successes of tomorrow and Distilus seems like it’s on its way! More information can be found by visiting http://distilus.com/, finding “Distilus” on Facebook, or following @Distilus on Twitter!

Summer 2012 ARBITRAGEMAGAZINE.COM

STUDENT CO.

Successful Secrets to the

World of Business Education vs. Experience: which will pave the way for success?

written by : oxana tsirelman , staff writer

photography : shelbi noble design: angela song

A degree gives theoretical knowledge; it doesn’t necessarily make for a successful employee

The necessity for a university business degree is a controversial topic. Some claim it’s just a piece of paper, while others maintain it opens doors to professions. But there is definitely more to succeeding in business than just a degree. Successful business consultant Mary Pat Blake asserts that, “There’s one key to success above all others: truly know what your customers want, and deliver on it.” Sharp social skills and intuition are the key ingredients to any successful business, and a degree can’t teach that. There are other important virtues that

ARBITRAGEMAGAZINE.COM Summer 2012

a degree can’t provide: persistence and perseverance. Kee-Hong Bae, professor at the Schulich School of Business, cites that, “my experience tells me hard work always works” in the word business. Doctor Ida Greene, a renowned consultant who trains and advises people in success, explains that the ability to sell products and a desire for a challenge is a sure way to thrive in business. In order to have a successful business, you must sell its source: you. Greene goes on to say that, “to succeed in the business world, you will need to be an opportunistic entrepreneur. Each day you live, you

STUDENT CO.

tread on uncharted terrain. Keep a keen eye. Be forever looking out for new opportunities; when you see one, seize it. It may not come back again.” Unfortunately, what also often happens with university students is that they don’t acquire the experience and connections that would serve them well once they graduate. They often think that if they have that “piece of paper” that says they can do something, they will be hired immediately. In other words, they think that a business degree guarantees them to a job. This mentality usually leads to an unemployed business school graduate. John Maxwell, author

and speaker on the importance of leadership, emphasizes that, “the first step towards success is leading yourself exceptionally well.” Although many think that good decisionmaking is key to self-leadership, it’s actualizing these decisions that matters. Often, people make good decisions with the intention to pursue them, but later lose their motivation, which leads directly to failure.

individual. A degree gives theoretical knowledge; it doesn’t necessarily make for a successful employee. Experience, combined with connections and solid social skills, will make you unstoppable.

Almost all the attributes that make a successful business person don’t come from a business degree, but from the

Summer 2012 ARBITRAGEMAGAZINE.COM

STUDENT CO.

Your Dreams

How to Land the Job of

written by : shelly verma , contributing writer

illustration: weimar lee

design: weimar lee

There are no secrets to success. It is the result of preparation, hard work, and learning from failure

Don’t settle for less than you deserve

If you are reading this, then you have probably faced several unsuccessful interviews or are stuck at a boring job. Your dream job may not be the same as my dream job, but a dream job for anyone should have these qualities – it’s dynamic, fulfilling and it matters. So how do you search for a dream job? Where should you begin? First of all, you need to ask yourself some key questions in order to gain insight on what is your dream job. You might have come across a particular job that is in line with your skills and abilities. This may be the break you have been waiting for. People often have their dreams prodding them

ARBITRAGEMAGAZINE.COM Summer 2012

regularly before they finally follow their heart and choose the career that is truly right for them. Next, think about what options you have. Do you have the necessary skills to be successful at the job? How competent are you at these skills? Be sure to write a summary of the skills that you possess and those you need to gain for your dream job. “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” --Colin Powell If you have a clear sense of your goal, you will discover a way to reach it. Knowing your career goal will allow

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illustration: weimar lee

you to plan how to develop yourself in order to achieve your dream. Resume Building Use all available resources to find your dream job. There are many useful websites where you can post your resume. Go through the job advertisements of a variety of companies. Then ask yourself, “Does the vacancy matches my needs? What are the requirements to get this job?” Make sure that your resume reflects a qualified applicant as described by the job advertisement. Write a list of all the places you have applied to and continue checking for new job postings. Interview Blues If you have reached the interview stage, you have beaten almost 75% of the competition. Interviews are the best platform for you to showcase your skills and demonstrate how you would fit well into the organization. Above all, be honest in your interview

and confident about your resume. Knowledge Is Essential Ensure that you know the prospective employer and job profile well. Ask relevant questions to clarify anything that may impact your decision to take the job and show the employer that you are serious about the job prospect. Talking about your successes in current or past positions may also help to augment your application in the eyes of the interviewer. Mind Those Manners Sometimes a simple thank you via email can turn the hiring manager in your favour. Also, don’t be afraid to be openly excited on your job prospect and your eagerness to take on its challenges.

yourself enough time to get a good job and accept a role that gives you room to grow. There is an abundance of jobs, so don’t fret - you will get one. The challenge is getting the right one for you, but the best part is that the choice is always in your hand. All the best with the dream catching! Shelly Verma is an avid small business writer touching on topics from health, higher education, career improvement, self-help to home improvement. She writes for an online resource that gives advice on topics including finance and insurance.

Be True to Yourself This is my final advice to all job seekers. If you feel that it is time to make a change, go for it. Give

Summer 2012 ARBITRAGEMAGAZINE.COM

INTERNATIONAL STUDENT CO. AFFAIRS

ARBITRAGEMAGAZINE.COM Summer 2012

Photography: Danielle Dancyger

INTERNATIONAL STUDENT AFFAIRS CO.

Exploring Accounting Careers with

Ernst & Young By: Shindu Parameswaran, Managing Editor and Tony Ge, Senior Online Editor

An exclusive interview with Danielle Dancyger, Manager in Assurance Services at Ernst & Young

Design: Matthew Hunter, Graphic Designer

Are you interested in a career in accounting? Looking to get into a Big Four accounting firm? To aid you in your research, this Career Spotlight feature presents an Arbitrage exclusive interview with Danielle Dancyger, Manager, Assurance Services at Ernst & Young. The following interview will provide some insight and tips you need to know about starting a career at Ernst & Young. Brief Bio: Ernst & Young is one of the leading professional services firms in the world, with over 150,000 people in 140 countries. With the roots of the organization going as far back as 1906, over the years, E&Y has established a strong presence in various areas including Assurance, Advisory, and Tax. Ranked as the 9th largest private company in the United States, E&Y has won numerous accolades, including six consecutive years as one of the “Best Workplaces in Canada” (Great Place to Work Institute) and “100 Best Companies to Work for” in 2011 by FORTUNE Magazine, which have helped establish the company as one of the world’s premier employers.

Q: Can you tell us a little bit about yourself? Sure, but firstly I would like to say thank you for choosing to highlight Ernst and Young and myself in the Arbitrage. I’m a first year manager at Ernst & Young in the assurance practice. My focus right now is in utilities, but I have lots of different clients ranging from manufacturing to timber to NPOs. I graduated from the Schulich School of Business in 2007 from the iBBA program. I guess I’ve always had an interest in business, but I was only really introduced to accounting at Schulich. It was a few great teachers, like Professor Drory and Professor Farrell, who really piqued my interest in the accounting profession. I soon realized the important role that CAs [Chartered Accountants] play in the economy by building investor confidence in capital markets. Taking on such a responsibility in society appealed to me. I joined Ernst & Young in the summer of my third year, as a summer intern. After completing my fourth year at Schulich, I returned to Ernst & Young full-time.

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INTERNATIONAL STUDENT CO. AFFAIRS

Q: What was the determining factor for you in choosing Ernst & Young? Like a lot of students at Schulich, I went out to all the info sessions and listened to what the firms had to say. When I was at the info sessions, I tried to fast forward and picture myself beginning my career and what kind of people I wanted to be working with. I made the effort to meet as many people as I could and listen to the experiences they had at their respective firms. After connecting with the people from Ernst & Young, it just seemed like a natural choice – I could see that this is where I would really fit in.

Q: Where do you see yourself in five years (i.e. still working at the firm or working in the industry)? As long as I’m learning, I will likely still be working at the firm. I’m not against exploring what opportunities are available for CAs - a lot of my friends that I started with at Ernst & Young have gone into industry to pursue a multitude of different rewarding careers. I will keep my eyes open, but I see myself growing at the firm. I like that I’m always learning, and I like the people and the variety of clients that I work on. At E&Y, I’ve been given a lot of opportunities to travel, sit on various committees, address interesting accounting issues on high profile clients and work with a lot of great and intelligent people with whom I love spending my day!

Q: Can you take us through one of your typical work days?

which is generally between January and March. As a first year manager, I have lots of client meetings as well as internal meetings with senior managers and partners. I am responsible for making sure the audit is going smoothly, so that involves coaching my team and acting as the first point of contact for my clients. On any particular day I may have a recruiting event, a firm social event, or a meeting for one of the other E&Y committees of which I am a part. In between all of this, my clients may have certain questions they need addressed or issues which arise and require me to do some research and consult with various people at the firm. There is always lots going on and that is what keeps each day interesting!

Q: If you were to come up with a tagline for the culture at Ernst & Young, what would it be? Our current internal tagline is People First, and I’m not sure if I could think of a statement that better describes our culture. Whether it is regarding our clients, employees, or members of the community; we always put people first in everything we do. It is something that you will understand more by talking with the E&Y reps on campus or by attending our info sessions.

• Named as “Canada’s Best Diversity Employers” by Mediacorp in 2011 Q: What do you believe is the underlying reason for Ernst & Young establishing itself as, not only a top employer in Canada, but worldwide as well? I think it’s really because of our supportive and caring culture that we’ve had so many named successes. Everyone wants to help each other advance their careers and make E&Y a better workplace. At E&Y, everyone supports and recognizes each other’s individual and joint contributions; this facilitates people’s growth and development. It’s not something you can just read about, you have to experience it for yourself. Another reason is the team environment we have at E&Y. For example, we have E&Y Connect Days where we go and do something fun as a team: we’ve gone to places like Centre Island and the Docks to perform community work,

I made the effort to meet as many people as I could and listen to the experiences they had at their respective firms

Over the past few years, Ernst & Young has gained a There is definitely not a ‘typical’ number of accolades for its work day. I work on different things achievements. A few of these at different times of the year. I am include:

kept busy with quarterly reviews after March 31, June 30 and September 30. After that, we plan our engagements • Named one of the “Best and go out to our clients to perform Workplaces in Canada” by the interim work; that brings us right up to Great Place to Work Institute what everyone knows as ‘busy season’ in 2011;

• Recognized as one of Fortune’s “100 Best Companies to Work for” in 2011

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have picnics and play fun team-based games. It is days like these that bring people together and really make you want to go to work at E&Y. Of course, all of these things are reflected in E&Y’s awards and accomplishments.

Q: Can you tell us a bit about the internship and full-time opportunities offered by E&Y?

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It’s not something you can just read about, you have to experience it for yourself When you join as an intern you can expect to really get an understanding of what it is like to work at Ernst & Young. Interns get that ‘on-the-job’ experience by being a part of our audit teams. Also, E&Y interns can expect to participate in a lot of different programs – one of them being our Global Student Exchange Program: selected interns from Canada participate in a four-week exchange with interns from our other global offices. They get the opportunity to travel to a different office to work and experience Ernst & Young in a different city. All Toronto interns take part in the Junior Achievement program in which the interns go out and teach money management skills to public school students. We also have the Big Four Ultimate Frisbee annual tournament for interns and some other fun sports related events. All of our interns go to Orlando for our International Intern Leadership Conference (IILC) where about 1,900 interns from 250 countries attend. There are a lot of different activities and workshops that happen at the event as well as the opportunity to have fun at Disney world. A lot of our top executives and leaders come to IILC. These are just some of the things that interns can expect. All full-time new hires begin in our Assurance practise focusing on adapting to full-time work as well as studying for the UFE (Uniform Evaluation). While working, we give them all of the support and resources they need to pass the CKE (Core-Knowledge Exam), SOA (School of Accountancy) and UFE. After successful completion of the UFE, there are lots of opportunities to become mobile in the company. Some will choose to move to other service lines, such as Tax, Advisory, Transaction Services, IT Risk and Assurance, Valuations or different

areas within the firm. Some will choose to move to another E&Y global office. As a full time staff, there are lots of teams and groups you can become a part of, such as environmental committees, social committees, sports teams, groups taking part incorporate social responsibility initiatives, women’s networks etc.. You are also highly encouraged to are also highly encouraged to volunteer in the community or to start your own team or club if it doesn’t already exist at E&Y.

Q: With so many qualified candidates applying to Ernst & Young each year, how do you stand out from the crowd? What does E&Y look for when hiring students? We are always on campus, so we really appreciate the students that come out to our events to meet us, who are enthusiastic about pursuing the CA designation and learning about the

firm. We don’t expect everyone to love E&Y right away but showing an interest in learning about all aspects of the firm goes a long way. Also, we look for someone who is well rounded. We are looking for people with a certain set of transferable skills that they have demonstrated through their work experience, volunteer initiatives and academic achievements.

Q: What are the opportunities for first and second year students to get involved with E&Y and get a head start on their future career as CAs? At Ernst & Young, we host a Career Premiere session that’s open to all second-year students. At various times of the year we also host workshops on campus on such topics as interview skills, case competitions and the Your World Your Vision competition. Your World Your Vision is a competition open to all students and which asks students to get together and create a program that will make a difference in their communities. I encourage students to keep an eye on the E&Y Facebook page, the career centre website and the Accounting Society | continued on page 52

Photography: Tal Gertin

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in order to learn about ways they can become involved. In terms of getting a ‘head start’, students should also talk to our summer interns in fourth year [at your respective university]; it is a great way to get the ‘inside scoop’ on what it’s really like to work at E&Y.

Q: All of the other top firms, such as Deloitte, PwC and KPMG, offer pretty much the same service as E&Y, so how is working at E&Y any different from these other accounting firms? Every company has a different culture. I think the supportive and teamoriented culture that you are going to see on a day-to-day when working at Ernst & Young differentiates us. From a market perspective, we are also the most globally integrated professional services firm and that gives rise to many opportunities for people on a global and a local level.

Q: Finally, what are your top 3 tips to students who are hoping for a career at Ernst & Young? Get experience. This doesn’t have to necessarily be accounting experience. It could be working at a corner store or as a lifeguarding after school. We are looking for applicants who have skills that are transferable and which will compliment those of others, adding value to our firm.

Photography: Tal Gertin

Get out there and meet the reps. Not only from Ernst & Young, but also the other firms. This will help you make an educated decision on which firm is right for you. Make use of the Career Centre. It is very beneficial for you to have them perform mock interviews and have them review or help refine your resume and cover letter. They can provide some excellent feedback. The career centre website will have all the dates that E&Y will be on campus or will be running events and all application deadlines - students should use this resource to help keep on top of things.

I would also like to add a fourth, which is to have a mentor: The value of a good mentor is immeasurable when it comes to making decisions about your future and about your career. The support, insight and knowledge of my mentors have been most important in helping me develop as a professional over the years.

The value of a good mentor is immeasurable when it comes to making decisions about your future and about your career Summer 2012 ARBITRAGEMAGAZINE.COMs

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written by : adrienne beason , staff writer

illustration: weimar lee

design: weimar lee

To the student, time is always of the essence and workouts are often the first activity to be pushed aside during busy periods

Mind Over Matter?

How to stay physically fit during post-secondary education.

During the time of year, when New Year’s Resolutioners are dropping out of gyms like flies and the next round of Valentine chocolate is on its way, health and fitness habits become more important than ever. University students in particular, have never had an easy time of developing them. While post-secondary education is structured as a training ground for life, it also encourages unhealthy eating and sedentary living. As a result, students tend to gain weight, particularly in their first year, as they are less active than before and face temptation absolutely everywhere.

their diets. As Simon Fraser University alumni, Lauren Rachel said, “...for the first five years [of university] I barely spared any consideration to the consequences of my choices. I would despair [about gaining weight], but not really make any changes to my lifestyle...Only when I began to consciously change my habits did I realize how ...hazardous my inactions had been over the years.” Free food on campus along with more serious conditions such as stress, depression, homesickness and excessive drinking represent only add to the list of reasons on why students overeat.

Moreover, post-secondary education is often the first time students experience complete freedom over

Rachel adds, “Through some strange reasoning, I felt I needed to be rewarded for hard work through junk

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food and alcohol when I was ‘suffering’ through school work,” But those sneaky liquid calories add up. Coffees, sodas and even health drinks are chock-full of sugar and fat. Laura Williams, M.S.E. and CEO of www.girlsgonesporty.com, reports that a lot of college students pick up unhealthy eating practices like skipping meals aka «saving up» calories which can potentially accelerate weight gain due to the body’s defence against starvation.

moderate portion sizes and eat their meals slowly. Packing healthy snacks like fruit instead of snacking on-campus will also help students reject temptation. In the cafeteria, students should seek out the words: baked, broiled, boiled, poached, steamed, and grilled. In a buffetstyle set up, students should survey all the food available before piling up their plates, and avoid using a tray.

So what exactly should students do to defend their bodies? Is it simply a case of mind over matter? And what if the mind is busy with work?

While a good idea, moderating alcoholic intake may be too much to ask of the student lifestyle. Regardless, students should focus on drinking water at all times. Perry pointed out that, “16 ounces before a meal can curb ...caloric intake”.

With obesity being a hot-topic, there is an increasing amount of research on how to eat healthy. Mary Perry (MS, RD, LDN), Director Clinical Trials for Zone Labs Inc, encourages students to fuel their day with a breakfast full of protein to generate sustainable energy. Furthermore, it is advised that students maintain

To the student, time is always of the essence and workouts are often the first activity to be pushed aside during busy periods. Perry said that students can combat this by remembering that every little bit helps – park far away, treat walking briskly to class as a short burst of cardio, always take the stairs, etc.

Marc Sickel, A.T.C. and founder of Fitness for Health, advised students to exercise more during exam weeks to combat stress and stress-related eating. Alice lorio, M.Ed. and President, Author, Mentor/Coach of Champion Parenting, Inc, points out that technology can be the healthconscious student’s friend. An app can be used to help monitor eating habits and to decipher nutrition labels. Though the post-secondary lifestyle is full of hazards and temptations, Williams states that the target of being healthy doesn’t mean students can’t occasionally enjoy pizza and beer too, but that they should take care to make themselves work for these indulgences by hiking across campus for them. Post-secondary is a time for enhancing the mind. Why not the body?

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Globalization is Eroding

Government

Power

Multiple factors are influencing the gradual emergence of a global economy in the 21st century written by : exequiel octavio bertaina , online editor photography : tal gertin design: lily li

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TRENDS Globalization in the contemporary world of politics has taken a particularly powerful form in recent decades, as innovations in communication, transportation, commerce and information technologies continue to generate new challenges to the dominance of a government over its economy. Even though the term globalization has existed for quite some time, it’s the intensity and scope of worldwide integration it has brought forward in the past two decades which makes this issue much more appealing. Without any signs of deceleration, these global forces keep transforming the social and economic landscapes in our societies. What’s alarming is that globalization has posed fundamental challenges to the traditional assumptions of economic and social equality, which clearly have weakened a government’s dominance and role within its borders. A distinguishing feature of globalization is the emergence of supranational decision-making bodies such as the International Monetary Fund (IMF), the World Trade Organization (WTO) and the World Bank. These have become the most important institutions in economic affairs. The growing mobility of capital and free trade promote these supranational decision making organizations which, in return, reduce the control governments have over their economies. Undoubtedly, all of these factors put together have created greater social and economic inequalities due to the new realities of the market “laissez-faire” approach. These organizations can be considered as shifting the role of the political authority from nation-states to global financial organizations. The government authorities are constrained by these supranational institutions as they heavily influence monetary and fiscal policy on a micro and macroeconomic level. Also, members of these organizations are required to abide by the rules and regulations governing international trade, which forces the governments

to enact macro-decision based rules and guidelines imposed by these international organisations. It’s no secret that these governments are required to alter their convictions or procedures in order to satisfy the worldwide trade laws. Hence, globalization is slowly accelerating the emergence of a single global economy and the power of a single government is undoubtedly diminishing (think of the United States and its diminishing influence). Interestingly, the state’s scope of action in these areas cannot solely be tamed by monetary or fiscal policies, as the global-market forces control most of the fundamental fluctuations such as the exchange rates (excluding to a certain extend the United States of America). Another aspect of globalization is the growing mobility of capital and the relative immobility of labour. If taxes, unwelcoming industrial policies, stiff environmental regulations are too costly or constraining, investors will pull up all stakes and transfer them elsewhere even if workers cannot move so easily. As John Gray points out: “global spreading of industrial production and new technologies encourag[es] unbridled capital mobility and unlimited trade liberty” (Gary, 2000). Therefore, the expected results of limiting taxation on producers will have to be shouldered by the labourers. It also ties the hands of the political forces, even those whose ideological traditions support state intervention in production and redistribution. In this view, it hardly matters whether the left or the right is in power, as the restraints of the internationalized economy will oblige the ruling party to follow the same monetary and ﬁscal policies or else face a loss of national competitiveness and potential foreign investor opportunities. One does not need to look through the lenses of international trade theories

to see links between globalization and the shrinking of a country’s control over their economy. One of the deepest sources of concerns about financial market laissez-faire is whether the race to the bottom in wages jeopardizes old opportunities to be relocated at lower production cost countries. Ultimately, the government’s ﬁscal policy is indirectly constrained by capital mobility, since taxes cannot be raised without negatively affecting the competitive advantage of its domestic producers. The likely outcomes of nation-states trying to avoid budgetary crisis by increasing taxes could lead to higher unemployment due to the intricacies of the global economy. Undeniably, this is one of the principal sources of pressure that have forced cuts in social spending instead of increasing government revenue by the mean of taxation. Interestingly, the primary political values required by the business markets are order, tranquility and freedom of free trade (Barber, 1995). None of these criteria invoke the need of citizenship, social justice or equality, which are necessarily promoted by the nation state. One much-noted reality is that firms can now operate across multiple borders with ease since that’s what the economic phenomenon of globalization is all about. The growing numbers of economic activities are taking place in digital spaces since they override all existing territorial jurisdiction and operate under international market trade guidelines. Further, this growing virtualization of economic activity in the financial field amplifies the crisis of losing control of the country’s macroeconomic sovereignty. What should not come as a surprise is that this process no longer unfolds within the geographic conception of where Army Men fought wars to nationalize those same territories centuries ago.

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TRENDS The decline of a country’s authority to act in many areas of life has led to the re-emergence of civil societies, which are gradually becoming significant players in the global governance. Global civil society is comprised of a broad range of organizations and associations from advocacy groups to trade unions and professional associations. For many, the merging global civil society is gradually replacing the government as the defender of democratic values and principles. As the ability of national governments to influence decision making at the international and national level continues to erode, so does their capacity to protect the political and civil rights of their citizens. These non-governmental organizations are challenging traditional state-based notion of politics and are advancing the idea of a cosmopolitan democracy in which the members of different societies can come together as world citizens in a global political community. Globalization has brought prosperity to those who follow its principles in some form, yet it has not been without costs. The gap between the rich and the poor has been increasing in developing countries, as outlined by Mr. Der Hoeven; increased demand for skilled workers, coupled with differences among countries in the growth of the supply of skilled workers, explains the increasing differences [in wage gaps]. (Hoeven, Income Inequality and Employement Revisited: Can One Make Sense of Economic Policy?, 2010). The economic benefits of globalization have not necessarily ameliorated the welfare status of the poorer in these societies, since at its essence, lowskilled manufacturing is moving away from developed countries to maximize corporate profits. This creates a strong economic pressure towards lower-skilled labour supply in the labour market of developed

countries to remain competitive in the global economy. Hence, these competitiveness concerns can cause developed countries to limit wages and the generosity of new social insurance policies. Consequently, the government tries to avoid having steep minimum wages since the producers of goods and services could ultimately leave and establish the workshops in lower production cost countries.

Employment opportunities and income have indeed increased for many people in the developing countries that have adopted trade liberalization strategies due to Globalization. Also, the workers must accept the fact that they have to work at lower-thanexpected wage rates in order to keep their job in the long-run. This leads to social inequality as the poorer live on tighter budget constraints, while the wealthier can increase their profits at the expense of the lower classes. Consequently, the capacity of unions to organize and demand better wages in collective bargaining is severely limited because the producers can establish their factories elsewhere, and the government cannot force a producer to remain within its borders. This has been clearly pointed out by der Hoeven; he argues that “[there is] a massive trend worldwide towards “flexibility” of the labour force: trade unions [are] sidelined and coerced to toe the line” (Hoeven, Introduction: Employment, Inequality and Globalization: A Continous Cocern, 2010). Likewise, individuals are required to have better skills than their predecessors. The lower-skilled jobs are moved to lower production cost countries. The more valuable and better paying jobs remain in developed countries, yet they require higher

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educated individuals. It’s only these types of individuals who can enjoy job opportunities with higher revenue. Consequently, there are fewer jobs in the lower-value-added part of the tradable sector and competition for similar jobs in the non-tradable sector has to increase as a direct side effect. Therefore, income growth is further depressed in the lower-value-added income sector. Wages must decrease as the supply of lower-skilled labour increases, while the demand for lowerskilled labour decreases. However, arguments about the social consequences of globalization cannot be reduced to the simple view that globalization has disastrous consequences. Employment opportunities and income have indeed increased for many people in the developing countries that have adopted trade liberalization strategies due to Globalization. This has led to greater standards of living and workers earning greater incomes than they previously could have imagined. They might not have the same minimum standards of living as developed countries, but they have the opportunity for a better life. This economic approach has allowed for a better understanding of the consequences globalization has brought forward to the governments. It’s clear that globalization is fundamentally capable of affecting a country’s economy, creating social inequalities and even reducing the government’s power to act and influence. Yet, globalization is not a new phenomenon and due to the rapid increase of information technology, communication, transportation and market laissez-faire, the government will continue to see its power eroded as countries continue to push for a global economy.

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written by :

megan harris , staff writer

photography : eman faiz

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Globalization

IS CHALLENGING THE PRESERVATION OF LOCAL CULTURE

Are we willing to accept a global society by sacrificing our local customs?

As we progress farther into the 21st century, so lengthens our path down the road of globalization. As the worldâ&#x20AC;&#x2122;s cultures and economies have become more and more intertwined, a debate has grown as to whether or not this is a good thing. Some argue that globalization is good because it means more trade between countries, therefore leading to lower prices and more economic growth. It provides greater investment opportunities- for example, multi-national corporations investing in smaller companies. Supporters of globalization also counter that it creates more jobs in developing countries - though critics

disagree with this, and say that industrialization in smaller countries by larger ones puts those small nations at the larger nationsâ&#x20AC;&#x2122; mercy. Another viewpoint here is that although jobs are being created in developing countries, this outsourcing results in a loss of jobs in the local economies of developed countries. A prime example of this is the amount of products Canadians use that are made by outsourcing labour in other countries. In the past, these goods were made in Canadian factories, by Canadian workers, and now this is not always the case. Companies like outsourcing production to developing

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countries, because it cuts down on labour costs for them, and often means less stringent requirements for working conditions. This is seen by many as a clear injustice and a downfall to globalization. On the other hand, increased global trade means that people, especially in Canada and the rest of the Western world, have easy access to products that are off-season or not produced in their home country. A good example of this is that fruits such as kiwis, pineapples, and bananas can be found in most Canadian grocery stores year-round. There is a debate

TRENDS here as well: Is this positive because it enhances the lifestyle of people in the Western world, as well as creating jobs for people who produce these fruits (and other foreign-made products), or is it negative because it controls and regulates what these smaller nations are able to do? Alongside the issues and debate over industry and trade in relation to globalization, we should now turn our discussion to the cultural impact of globalization. Which is better - working towards improving the already ever-present globalization, or preserving local cultures? A huge example of the cultural effect of globalization is the “Americanization” of the world- the North American culture finding its way into societies across the world - societies that had previously been independent and culturally unique. This is not to say that globalization has replaced local culture, but the debate around this issues lies in the fact that the two things are increasingly at odds. Does it take away from the culture of a small European city when American restaurants (such as McDonalds) can be found in those cities, and food from those places (such as Italian food) can now be found in many places worldwide? Or is this a positive thing because it

connects people from these small cities in Europe to people in the West and other parts of the world, making them seem closer? Another example is holiday traditions. In the 1980s, Chinese people didn’t really celebrate Christmas (in China), however, now an increasing number of people in China, especially younger generations, are recognizing and celebrating this holiday.

Local culture is an important element of peoples’ roots, and is very difficult to be changed Does this undermine traditional Chinese culture? Should we work to preserve Chinese culture, or should supporters of Christmas in the West celebrate that more people are embracing their traditions? Zhou Chunyu, Masters of Public Administration student at the School of Government and Society at the University of Birmingham in England, has an interesting take on this issue. He says that while globalization is a huge influence on our world today,

including in the area of culture, traditional and local cultures can coexist with globalization. “Local culture is an impor tant element of peoples’ roots, and is very difficult to be changed,” says Chunyu. “Local culture can be influenced by globalization to some degree by way of local peoples’ behaviour and attitudes. Although globalization might change people’s lifestyles to some extent, traditional culture can’t be replaced by external culture, and it dominates the local populations minds and hearts. In short, local culture can be preserved and can’t be replaced by other cultures, while globalization as a driving power has been instrumental i n s h a p i n g li fe s t y le s o f lo c a l residents in some ways.” Chunyu adds, however, that there could be a difference if someone was born and raised away from their native country or culture from a young age. In this case, their original roots and culture could be replaced or dramatically influenced by the culture and experiences they were immersed in growing up. Chunyu also believes that globalization is a form of progress and is positive on the whole, in that it facilitates the global movement of

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people, ideas, money, and materials, and also creates a greater respect and understanding between different cultures around the world, as it diversifies the world’s culture.

There are people from different backgrounds and societies co-existing in the same city, sharing beliefs and ideals Canada is an interesting example of globalization because of its image as a patchwork quilt of cultures (contrasted to the so-called “melting pot” of the United States). Especially in larger cities in Canada, such as Toronto, Montreal, or Vancouver, the cultural diversity Chunyu mentions is especially evident. An hour-long streetcar ride through Toronto, for instance, can take you through areas representing different cultures, including Chinatown, Korea Town, Little India, and more. On one hand, this can be seen as a positive effect of globalization, because there are people from different backgrounds and societies co-existing in the same city, sharing beliefs and ideals and lending bits of their cultures to each other. Another side of this, however, that is argued by some, is that these pockets of culture within a city are a form of self-segregation of people into their own cultures. For example, we can look at Chinatown (in any major city), which, for the most part, comprises of Chinese people congregating in shops and other businesses, speaking their native languages and attracting visitors who are also Chinese. Chunyu says that in his opinion, though this may seem like deliberate

segregation, it is just a normal and comfortable part of life for people. “ Pe o p le w h o have t h e s am e natio nalit y or her it age, have a similar cultural background, the same native language, and a similar way of thinking, are more likely to have a good and deep understanding, trust, and a sense of safety and comfort with each other than if they were dealing with foreigners,” says Chunyu.

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In this way, the Chinese or any other culture is being preserved, even while within a culturally diverse city like Toronto, which could be seen as a natural “compromise” between globalization and the preservation of local culture. Chunyu also says that globalization has a limited role in bringing people together, despite it being a positive influence on the world’s population, in terms of causing greater sharing

TRENDS

longer a need to visit a place to experience its culture, since you can experience many parts of it from home. For example, you can find I n d i a n r e s t a u r a n t s i n most cities in Canada, at least the major ones, and also experience other aspects of Indian culture, including shopping, enter tainment, or even cultural education. Chunyu puts this in perspective using the example of his home country of China. “China, for instance, is famous for Chinese food, even though there are lots of Chinese restaurants across the world,” Chunyu says. “Chinese food originated in China- and therefore, the food is still distinct to China. Likewise, goods made in China are exported to other countries, but the exportation of goods from China can change China as a large manufacturing base in the world.” In the end, Chunyu says that he personally finds it very important to preserve local culture. Globalization has its benefits, and he says that this preservation can still occur even as globalization grows larger.

of knowledge, communication, and greater migration around the world. “People who have different heritage [from one another] can physically live in a country, but it is very hard to have a deep cohesion, consolidation, and shared values - both socially, politically, and physiologically, as a whole, because of different races and socioeconomic inequality,” says Chunyu. “Different people have different social cycles. In reality, the majority of native speakers always

dominate mainstream society, while minorities always get together to acquire a sense of safety.” I n t h i s w a y, C h u n y u s a y s , globalization cannot take away the uniqueness of a certain place- even given the “Americanization” of the world, as discussed earlier. In many metropolitan cities, especially, it is easy to find food or products from dif fe re nt natio n s. Gi ve n t his, someone could argue that there’s no

“Local culture has to be preserved since it is about your roots, your heritage, and your nation,” says Chunyu. “When I say I am Chinese, I am proud of my country, which includes Chinese culture. Imagine if a person lost a sense of his or her home culture - he would probably lose his or her social identity. The person may not care where they’re from, or where their parents come from. Also, if local culture is replaced by external culture, then the host nation will lose its own distinction and uniqueness. The nation can be completely changed or dominated by other nations, and the nation or race may end up disappearing or becoming assimilated.”

Summer 2012 ARBITRAGEMAGAZINE.COM

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