PART 2 OF THE RESEARCH

5

Research Proposal

Name of the Student

Institution Affiliation

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Date

Research Proposal

“How Improvement of Technology Impact Economy Especially in Canada”.

Introduction

The research will be exploring how the improvement of technology impacts the economic status of a country, particularly Canada. Technology improvement involves the systematic use of commercial, economic, technical, and scientific knowledge in meeting the specific requirements and objectives on potential needs such as business, among others (Caliskan, 2015). In economics, it is widely acknowledged that technology is among the key drivers of economic growth in cities, regions, and countries. This is mainly because technological progress helps in the efficient production of services and goods, which are the main aspects of prosperity. The technology involves a huge body of tools and knowledge, which ease the utilization of the economic resources in an approach to produce services and goods innovatively and efficiently. Technology improvement in Canada has been essential for its development and growth, and the more advanced technology available, the more it has helped to improve the economy in various areas.

The impact of technology development on Canada’s economy could be broken into various areas (Bakari, 2016; Rivera, Manzani, & Rivera, 2017). First, technology development has helped improve international trade and the internet. Through technology, there have been some important elements such as the internet, which boost the international trades, supporting import and export of products. This has supported the growth and success of the job market growth and international trades. For instance, technology allows organizations in conducting trades or sharing information in less than the blink of an eye. Another area on how technology has impacted Canada’s economy is on the research. With better technology, it has led to further research in various sectors of business and science, improving businesses. Another area greatly impacted by the technology improvement is industrial expansions. Thanks to the technology development, which has increased efficiency in the industrial sector, such as improved efficiency of labour, which has resulted in an expansion in many industries. For instance, there are technology devices, which make work easier. Moreover, technology improvements have increased efficiency.

Literature Review

Export/Import

Export and import comprise the selling and buying of services and products from foreign countries or from their home country (Bakari, 2017). According to Bakari (2017) research findings, there are many ways in which export and import impact economic development. At first, for a healthy economy, it must have imports and exports, which indicates the strength and sustainable trade surplus for the country (Rivera et al., 2017). Bakari (2017) also identified that exports and imports promote the well-being of the country by indulging the go-ahead, giving the preferential approach to exploiting the economics of scale and encouraging the spreading of technical knowledge. In a similar view by research from different scholars, Blavasciunaite, Garsviene, and Matuzeviciute, K. (2020) and Wolla (2018), maintaining the export and import in the economy promotes the economic performance as well as the gross domestic product (GDP). This applies that maintaining the appropriate balance is very crucial for the survival of the country’s economy. For instance, according to research by Bakari (2016), there are many products exported from Canada, such as cars, crude petroleum, aircraft, spacecraft, and many others, which generate higher revenues, helping to sustain the country’s economy. Other essential elements in the economy, which may be influenced by export and import include the interest rates, levels of inflations, and exchange rates. Even in the next few decades or fifty years to come, export and import will continue to be among the essential activities supporting the country’s economy (Vorlak, Abasimi, & Fan, 2019). For instance, it will have a significant impact on the exchange rates, making the imports less expensive and exports more expensive. In a similar view by Korkmaz (2013), exchange rates help in the performance of a country on international trades by making the exports more expensive and imports less cheap, gaining the country much revenue.

Overall, the research findings from the different scholars identify that import/export are among essential activities, which supports the health status of the economy. These research findings will be useful to the proposed study as they will help identify among the essential activities in the economy, and they influence its well-being.

Technology Development and Export/Import

Export and import have a significant impact on the economy of a country; however, their integration into technology would result in many potential benefits. Technology improvement is among the essential mechanisms that facilitate the economy’s growth and development (Wang et al., 2020; Fotros, Ahmadvand, & Amini Rad, 2017). According to Wang et al. (2020) research findings, technology holds the future global commerce trade for both importing and exporting. For the past many years, technology has greatly played an essential role in shaping the trades, and it possesses great potential in transforming trades in the years to come. In a similar view by Sultanuzzaman et al. (2020), technology and its ever-developing capabilities affect exports and imports for many businesses. This applies to the reason why technology development is among the main players in economic development and growth. Reviewing the argument from the authors, they identify that the technology development and its integration to export and import across the industries have resulted in economic development (Estevadeordal, Chatruc, & Martincus, 2020). For instance, it has influenced the procedures involved in the international trades for the companies by streamlining these processes, making it easier for the organizations to perform their businesses.

Aghion et al. (2018) argue that technology has developed an information way for importing and exporting companies. All the companies and industries, which import or export their products or services in Canada depend on technology for sharing their information. In comparison to several years back, it was hard to share information, and the international trade was not as smooth as in modern times. This applies that in the few years to come, technology development would have introduced a new approach to sharing information, making it easier to conduct trade. A good example of development on technology, information sharing across business a few years ago used to take a long time from one party to the other. However, the change in technology has changed, which makes it easier for parties sharing information or events occurring in really (Da Silva, Karabag, & Berggren, 2017). According to the research by Da Silva et al. (2017), being a buyer or a supplier of international products, it requires a quick turnaround because there is a need for conducting constant transactions. In other instances, it involves sending inventory information to the buyers. Following the normal supply chain, it would be hard due to the delayed procedures. However, with the technology, there is increased speed to conduct these transactions, where suppliers and buyers can increase their export and production while customers wait for a small period of time.

The gradual change in technology is likely to change the trading approach (Kalaitzi, 2018). Kalaitzi (2018) suggests that in the next years, technology is like to make the trade digital, making export and import easier. For instance, with the help of technology, it would be easier to digitize business transactions, ensuring quick deliveries on imports and exports. Harrison (2018) present a similar view that if the trades and the involved processes will not be digitized, it will be hard for the industries and companies to keep up with the increased demand rates on imports and exports. According to Xing (2017), digitizing these transactions probably would be an expensive approach; however, this would save billions of dollars for the country’s economy. A good example is that products are easily financed, shipped, and inventoried with a push of few buttons or a few clicks of a mouse.

In conclusion, the different research findings from various scholars identify that technological advancement play an essential role in the import and export of products and services. In addition, the scholars identify how technology will have impacted the development of international trade transactions, essential to the success of import and export activities. On the other hand, these export and import activities are among the essential aspects, which support the well-being of the economy. The reviewed research results relate to the proposed study as they will be utilized to present how technology impacts the economy’s well-being through imports and exports.

Technological Devices and Luxury Goods

Regardless that technology development has significant development on the economy of the country. It still has some negative impacts on businesses, particularly those selling luxury products (Mgunda, 2019). However, regardless of the related negatives impacts, the rise of new technology will result in new technological devices. Some of these technologies will influence the connection between luxury goods and customers. For instance, there are some current luxury goods in Canada, such as Apple Watch, which has outstanding features such as a touch screen, among others. However, with the gradual changing technology, such features will be outdated, forcing these luxury goods to disappear from the market. Many years back, there were luxury products, trending such as the Model T Ford luxury cars. However, the technology change resulted in new models of luxury cars such as Ferrari, with more technological integrations features. The same phenomena will apply to the current luxury products in the next few decades. In a similar view by Aiolfi and Sabbadin (2019), technology will greatly disrupt the luxury market to its core. According to Aiolfi and Sabbadin (2019), technology has greatly caused a shake-up to the watches by introducing smartwatches, which identifies that in the next few decades, the industry will even face more disruption.

Apart from affecting luxury products, technology as well influences the customers’ perspectives (Aiolfi & Sabbadin, 2019). Based on the research findings by Aiolfi, S., & Sabbadin, E. (2019), technology advancement is among the major challenges to luxurious and fashion products. For instance, technology is presenting a new perspective in the market, where owning some of the technological devices is part of luxurious products. This applies that these new technological products will take up the market for other products or act as alternatives for these products. In conclusion, based on the scholarly findings, technological advancement is likely to have a negative impact on luxury products. The various research findings from different scholars’ present that technology will result in new luxury products or introduce new technological devices, which will act as luxury products.

Statement of the Problem

The research will aim to explore how the improvement of technology impacts the economic status of a country, particularly Canada. Technological advances have resulted in various significant impacts on the economy (Rivera et al., 2017). There are various ways in which technological advancement impacts the economy of the country. One approach how it affects is influencing the imports and export of the country. Import involves the receiving services and procedures from foreign countries, while exporting is the selling of products and services to other countries from the home country (Thirunavukkarasu & Achchuthan, 2014; Oum et al., 2019). Technological advancement impacts imports and export in various approaches, which directly relates to the health status of the economy. For instance, the improved procedures, processes, and transactions through technology help in increasing the production and delivery of products. This, in return, increases the exchange rates and improving the inflation rates in the economy. Therefore, the research will aim to explore more on how technological changes impacts the economy through various approaches.

Moreover, the research will aim to explore the negative impacts of technological advancement on the economy. Specifically, technology advancement has resulted to emerging of new technology products, which replace other luxury products. For instance, a few years ago, there were luxury watches. However, the new technology resulted in smartwatches, which upgraded features. The luxury market is a multibillion industry, and technology is bringing new changes, which are strongly shaking it. This applies that in the next few decades, technology will give rise to other technology products, which replace the current new products. This research will explore how technological advancement is affecting the luxurious industry in Canada, which is among the major source of revenue to the Canadian economy.

Overall, the research will be important to different parties, including different organizations, based that it will shed light on how technological advancement is affecting the economy. This will include analyzing findings from various scholars to identify their views about technology advancement. The findings of the research as well could be used for reference to other studies.

Research Questions

The following research questions will guide this research:

i. How do export and import affect the economy?

This research question will guide the research to identify the role that export and import have to the well-being of the economy.

ii. How does the technological advancement benefit the economy?

This research question will guide the research to identify how technology supports, either directly or indirectly, the well-being of the economy.

iii. How does the technological advancement affect luxury products?

This research question will guide the research to explore how luxury products are affected by changes in technology and how it relates to the economy.

References

Aghion, P., Bergeaud, A., Lequien, M., & Melitz, M. J. (2018). The impact of exports on innovation: Theory and evidence (p. 678). Cambridge, MA: National Bureau of Economic Research.

Aiolfi, S., & Sabbadin, E. (2019). Fashion and new luxury digital disruption: the new challenges of fashion between omnichannel and traditional retailing. International Journal of Business and Management, 14(8), 41.

Bakari, S. (2016). Impact of exports and imports on economic growth in Canada: an empirical analysis based on causality.

Bakari, S. (2017). The long-run and short-run impacts of exports on economic growth: Evidence from Gabon.

Blavasciunaite, D., Garsviene, L., & Matuzeviciute, K. (2020). Trade balance effects on economic growth: Evidence from European Union Countries. Economies, 8(3), 54.

Caliskan, H. (2015). Technological Change and Economic Growth. World Conference on Technology, Innovation and Entrepreneurship. https://doi.org/10.1016/j.sbspro.2015.06.174

da Silva, L. E., Karabag, S. F., & Berggren, C. (2017). Collaboration in international technology transfer: the role of knowledge boundaries and boundary objects.

Estevadeordal, A., Chatruc, M. R., & Martincus, C. V. (2020). New technologies and trade: new determinants, modalities, and varieties. Inter-American Development Bank.

Fotros, M. H., Ahmadvand, N., & Amini Rad, M. (2017). The Impact of Import and Export of Medium Technology Industries on Economic Growth of Iran. International Journal of Business and Development Studies, 9(2), 139-161.

Harrison, A. (2018). International trade or technology? Who is left behind and what to do about it. Journal of Globalization and Development, 9(2).

Kalaitzi, A. S. (2018). The causal effects of trade and technology transfer on human capital and economic growth in the United Arab Emirates. Sustainability, 10(5), 1535.

Korkmaz, S. (2013). The effect of exchange rate on economic growth. In Conference paper Oct.

Mgunda, M. I. (2019, December). The Impacts Information Technology On Business. In Journal of International Conference Proceedings (JICP) (Vol. 2, No. 3, pp. 149-156).

Oum, T. H., Wang, K., & Yan, J. (2019). Measuring the effects of open skies agreements on bilateral passenger flow and service export and import trades. Transport Policy, 74, 1-14.

Rivera, V. A. G., Manzani, D., & Rivera, V. A. G. (2017). Technological advances in tellurite glasses. Springer International Publishing.

Sultanuzzaman, M. R., Fan, H., Mohamued, E. A., Hossain, M. I., & Islam, M. A. (2019). Effects of export and technology on economic growth: Selected emerging Asian economies. Economic research-Ekonomska istraživanja, 32(1), 2515-2531.

Thirunavukkarasu, V., & Achchuthan, S. (2014). Export, import and economic growth: Evidence from Sri Lanka. Achchuthan, S.(2013). Export, Import and Economic Growth: Evidence from Sri Lanka. Journal of Economics and Sustainable Development, 4(9), 147-155.

Vorlak, L., Abasimi, I., & Fan, Y. (2019). The Impacts of Exchange Rate on Economic Growth in Cambodia. International Journal of Applied Economics, Finance and Accounting, 5(2), 78-83.

Wang, K., Wang, J., Mei, S., & Xiong, S. (2020). How does technology import and export affect the innovative performance of firms? From the perspective of emerging markets firms. Complexity, 2020.

Wolla, S. A. (2018). How Do Imports Affect GDP?. Page One Economics®.

Xing, Z. (2017). The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows. International Economics and Economic Policy, 15(3), 565–586. https://doi.org/10.1007/s10368-017-0375-5