Before studying the impacts of globalization on Canada, it is necessary to discuss the concept of globalization and what are its functions. Globalization is the removal of trade barriers between nations which allows free flow of goods, services, manpower, and knowledge to enhance each other’s capabilities and become more competitive. The primary functions of globalization are exchange of goods which are traded within countries, exchange of services which are specifically designed to support the latent requirement of the country, exchange of manpower which facilitates and integrates global systems of operations in both the corporate and the industrial groups, and the sharing of competitive knowledge to complement each other in areas which are weak or simply unfinished and help build insightful cultures of innovation and progress. It has deep impacts on a country and how it forms its policies to facilitate further growth and how it adjusts to the import of a different system of operations which requires the domestic system to mould itself to external impact. The wave of globalization has been opened since the 1990s when most countries starting with the US and the Europe started inviting and desiring to invest its knowledge and financial resources in other countries.