But, just as clearly, new competition from China and other emerging Asian economies is posing some tough challenges for Canadian manufacturers. Global integration has also been affecting international savings and investment flows. Indeed, in the past dozen or so years, what is sometimes called "financial openness" has increased significantly.
Since 1995, the stock of cross-border investment in advanced countries has grown from about 40 per  BIS Review 71/2007  1  cent of GDP to more than 120 per cent of GDP, and emerging markets have seen a similar increase, albeit from a lower base. This leads me to the second development I want to highlight.