Smith, Solinger & Topik (2002) has debated that the world is becoming more interdependent and made itself into a complex web which can have severe implications of each other’s role and performance. They argue that globalization have had deep and long lasting impact on major governments and specially the performance, conduct, and policy formation of states. This has changed the way countries form policies to accommodate foreign interest in home countries and facilitate ease of doing business with removal of trade barriers, tariffs, and overlapping of taxes. Canada has been a follower rather than being a leader and initiator in policy making because of its intent of fulfilling domestic necessities and becoming a more self-sustaining country. The most important problem for Canada is to maintain a balance between the need for international funds and expertise in selective fields and to acquire and maintain internal legitimacy of protecting the culture and social structure. The issues of inflation, interest rates, and domestic demand for international expansion gave the much needed impetus to Canada for starting the process of integrating itself with other economic powers. The country soon opened up with liberal policies of business and signed multiple trade agreements with partner countries.