Foreign Investment And Its Impact On Australia Essay

Foreign Investment And Its Impact On Australia Essay

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Strong foreign investment flows in Australia is more important than ever and it is at a historical high level, yet despite the benefit it brings, issues related to whether the foreign investment should be limited emerges. However, reported by Chris (2013) that foreign investment policy is always a two-faced policy which has been rise with contradiction and it is not likely to change under the Prime Minister Tony Abbott. The foreign investment in Australia in this essay can be defined as the act of putting money, effort and time into the real estate, business and agriculture in Australia to make a profit, which is taken by countries excluded Australia. This essay will discuss the reason for and against of the limitation of foreign investment in Australia by arguing that, on the one hand, foreign investment may bring the wealth into Australia, but on the other this type of investment may also bring the negative impacts to the local economic market, and secondly it will argue the benefits to the urban development in Australia, yet this has a disadvantage as it often also causes damage to the local environment.

Firstly, the wealth which is brought into Australia by foreign investors benefits the Australia’s economy. Since the 1960s, countries like United State, United Kingdom and Japan started to invest in the mineral industry, the foreign investment becomes a necessary income for supplement domestic savings in Australia. Reported by ITS Global (2008), by 2007-08, inwards Foreign Direct Investment (FDI) had reached a five-decade high of nearly 3.7% of GDP, equivalent to $34.8 billion. Moreover, a later report by Robb, the minister of Department of Foreign Affairs and Trade (2014), there is $2.5 trillion investment of total stock in ...


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...foreign investment may also bring the negative impact to the environment. Hence, it can be argued that foreign investment may damage the natural environment as it may benefit it, and the limitation may be taken.

In conclusion, this essay has discussed the advantages and the disadvantages of foreign investment in Australia. The increased income brought by the foreign investment benefits the Australia’s economy, but it may put the local market in risk as well. Finally, although the foreign investment will boost the development of urban in Australia, it can also cause damage to the local environment. Hence, it could be argued that the advantages of foreign investment to the economy and development in Australia are outweighed by the disadvantages as the local market and environment are both exploited. Therefore, the foreign investment in Australia should not be limited.

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