The Impact of Globalisation on the Australian Economy Globalisation is not new. Australia has been involved in trade, investment, financial flows, technology transfers and the migration of labour since its foundation as a colony. What has changed is the size, direction and influence of these transfers, especially since 1980. There are a number of factors that have aided this transformation. They include: • The expansion of new markets – foreign exchange and capital markets are linked globally. They operate 24 hours a day with dealings any where in the world possible in real time. Financial deregulation and the floating of the Australian dollar since 1983 intensified the impact of globalisation on the Australian economy. • New technology and the tools of globalisation – the internet, email, mobile phones, media and communication networks have all sped up the process of globalisation. They have increased the spread and speed of knowledge transfer and communication. Australian consumers can buy products from any nation in the world, transfer funds between accounts or purchase shares in any major market. Australian businesses can market their products at a fraction of the cost and be exposed to a global market place of competition. This potentially is the closest we will ever come to the perfect market. • New institutional players – The World Trade Organisation (WTO) has growing authority over national governments, as does the IMF with its restrictions and controls it can impose on nations requiring assistance. Multinational corporations have more economic power than many nations. Hedge funds and financial dealers are able to manipulate financial flows and subsequently exchange rates, leaving nations helpless in their wake. This in turn renders traditional economic policy tools virtually useless. • New rules and restrictions – Multilateral agreements on trade, services and intellectual property rights, backed by strong enforcement mechanisms, reduce the scope for national governments to develop their own economic policies. What is Globalisation? Globalisation is the growing economic interdependence among nations as reflected in increasing actual movement across nations of: • Trade • Inv... ... middle of paper ... ...ly be quite effective at pushing the Australian dollar down by selling the currency, it is very limited in pushing it up. The RBA only has its limited foreign reserves to buy the Australian dollar. The value of Australia's foreign reserves fell from $22billion US in December 1999 to $16billion US in September 2000. The amount of Australian dollars traded in one day in Australia's foreign exchange market exceeds its total foreign reserves. As was seen in the Asian crisis in 1997 in Thailand, running down foreign reserves will not always halt a currency decline. The US Federal Reserve is probably the only central bank that can strongly influence the decisions of fund managers. The financial traders and dealers seek a low inflation, low interest rate, low current account deficit, high growth, budget surpluses and small public sector. If the Government does not achieve these policies, the markets will punish it. If they do achieve them, the markets may still punish them. Any way you look at it, Australia is integrated into the globalised world economy and is dependent on the activities and policies of globalisation. Australia’s future will move with the ebb and flow of globalisation.
Westpac Institutional Bank May 2010, ‘Westpac Market Insights Australia, New Zealand, G3 & China’. Retrieved June 6th, 2010 from - http://www.westpac.com.au/about-westpac/media/reports/australian-economic-reports/
World War 1 was a war fought from 1914 to 1918, it was also known as the ‘Great War’. It was fought principally in Europe and the Middle East. It was fought between the Triple Alliance, which consisted of Germany, Austria-Hungary, and Italy and the Triple Entente, which consisted of Russia, France and the British Empire. World War 1 had major impacts on Australia, but the most obvious would be the economic impact, the social impact and the political impact. The war had great consequences on the Australian economy and the results of these consequences were varied. One of the first impacts on the Australian economy was the government’s cancellation of existing trade agreements with Germany and Austria-Hungary. World War 1 also had a great social
Over the last 20 years, the Australian economy has picked up as a result of imported skill labour. Australia offers a wide range of safe and relatively fair job opportunities. Lastly, basic education in Australia is free and universities offer a wide range of courses to accustom for the student’s abilities and desires.
Nowadays, Globalization is a main trend for the world economic. The world’s economy has become fully integrated. There are no barriers and borders to trade around the world.
Everyone is connected to globalisation. Common foods that you buy may seem like they originated here in Australia, however they mostly originate from another country. Products like your iPhone, Nike shoes or your Nestle coffee didn’t originate here in Australia. For these products to be manufactured here would cost too much so the people behind these large corporations called TNC’s, move out to developing countries to get cheap labour.
Five years ago, in the middle of 1997 Australia’s economic growth had begun to upturn after a period of recession during the ’96 year. This was unmistakably shown through the composite indicators of retail trade, dwelling investment and Australian share market valuations, all concurring with one another and demonstrating the effects of an upturn in economic growth.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
Eichengreen, Barry. Globalizing Capital: A History of the International Monetary System. Princeton, NJ: Princeton University Press, 1996.
Therefore, economic and political with surrounding states must be preserved to ensure their economic security. The decline in mineral exports to China, a major export, has put considerable strain on the Australian economy still recovering from the effects of the property bubble and subsequent financial crisis. With the Chinese economy slowing down, Australia, is actively seeking alternative economic agreements to fill the rising gap. Recently, the Australian Government repealed the ban on selling uranium to India and has come to an agreement on exportation to India. This move reflects Australia’s plans to focuses on India rather than Indonesia to for long-term economic security. The move towards India poses the question of what benefits that would be gained with cultivating closer ties to the Indonesian
Define and explain globalisation, then critically evaluate and illustrate the impact globalisation has had on a particular business, the industry it operates in, its country of origin and the country or countries the business has expanded into.
International trading has had its delays and road blocks, which has created a number of problems for countries around the world. Countries, fighting with one another to get the better deal, create tariffs and taxes to maximize their profit. This fighting leads to bad relationships with competing countries, and the little producing countries get the short end of this stick. Regulations and organizations have been established to help everyone get the best deal, such as the World Trade Organization (WTO), but not everyone wants help, especially from an organization that seems to help only the big countries and those they want to trade with. This paper will be discussing international trading with emphasis on national sovereignty, the World Trade Organization, and how the WTO impacts trading countries.
International organizations create space for its members to coordinate interests and actions which helps promote interdependent relationships among them and strengthens their legitimacy. As society has progressed, it has globalized, and in the past 50 years states have had to address their growing dependence, especially in the economic sector. The World Trade Organization (WTO), is an institution which has an immense impact on the international political economy and the way states function within the international system. It organizes agreements and treaties which govern how its members decide policies, tariffs, and keeps states accountable for their actions. For example, the General Agreement on Tariffs and Trade (GATT), determines how states can regulate their import and exports. (Hurd 2014,
The term ‘Globalization’ refers to is the integration of economies, industries, markets, cultures and policy-making round the globe. It explains a progression by which both national and regional economies, societies, and cultures have become incorporated through the universal system of commerce, communication, migration and transportation.
Globalisation is a very complex term with various definitions, in business terms, “globalization describes the increasingly global nature of markets, the tendency for transnational businesses to configure their business activities on a worldwide basis, and to co-ordinate and integrate their strategies and operations across national boundaries” (Stonehouse, Campbell, Hamill and Purdie, 2004, p. 5).
Globalization plays a massive part in my life as it does in everyone’s lives. Every day the world is getting smaller, between technological improvements and peoples interest in these technologies it is easy to see why this is happening. In this essay I have only shortly touch upon some of the places where globalization has affected my everyday life. From shopping as Asda to meeting people on the other side of the world to discuss my dissertation ideas globalization has had a positive affect on my life. The fact that I can walk down a street in Coleraine or Sydney and see similar shops and food outlets is a positive thing in how our lives are intertwined through out the world.