Impact of U.S. Oil Boom on Canada

It is quite clear that the United States has been dependent on several European countries and Canada for oil; however, in November 2013, the International Energy Agency (IEA) reported that the U.S. produced oil than it imported and has become a candidate to become the largest oil producer. Because United States, Canada’s sole oil customer, has become self-sufficient, it is quite likely that the U.S. will not require Canadian oil as well, similar to the case with sixteen oil refiners in Europe. If trade relations between Canada and U.S were to end, there will be detrimental impacts on the ways the Canadians live as the U.S. provides us with money to fund critical institutions in Canada.

My takeaway is that although the new pipelines proposes some risks, they will be key solutions to this problem. The new pipelines will create job opportunities and develop economy in Canada.

Work Cited:

Cooper, Sherry. “The American Oil Boom and Its Impact on Canada.”Financial Post Business The American Oil Boom and Its Impact OnCanada Comments. Financial Post, 9 Mar. 2012. Web. 10 Sept. 2014. <http://business.financialpost.com/2012/03/09/the-american-oil-boom-and-its-impact-on-canada/>

Economist Milton Friedman points out that corporate officers have no obligation to support social causes as hiring the chronically unemployed or reduced pollution beyond that mandated by law. Their sole task is to maximize profit for stockholders while obeying the law and to ensure competition without deception or fraud. This directly contradicts with Freeman’s stakeholder theory. Freeman argues that for the business to be successful, the entrepreneur has to satisfy, not only the shareholders, but also the employees, customers, suppliers, financiers, communities as well. Another example that did not follow “The Social Responsibility of Business”
Friedman also emphasizes that corporate executives are directors are not qualified to do anything other than maximize profit. The reason is business people are expert at making money, not at making social policy, and it is by making money that they contribute to human welfare. These social problems should be left to the governments and social service agencies. The business news from New York Times on how CVS quit selling tobacco products goes totally against Friedman’s point of view as CVS lost an estimated sales of 2 billion dollars. Although Friedman thought, CVS executives weren’t qualified to makes these decision, the executives thought that cigarettes and providing health care just don’t go together in the same setting.

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