...The Impact of Globalisation on the Australian Economy By Anthony Stokes Lecturer in Economics, Australian Catholic University 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...
Words: 2806 - Pages: 12
...“The Effects of Globalisation on Australia” Economic, Social, Cultural, Environmental and Political Word Count: 1,638 Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 Economic 5 Social 7 Cultural 9 Environmental 10 Political 11 Conclusion 12 References 13 Executive Summary The effects of Globalisation on Australia can be disseminated into a number of different categories. For the purposes of this report five major categories including Economic, Social, Cultural, Environmental and Political have been explored and summarised but is by no means exhaustive. The overall effects and impact of globalisation on Australia may well be positive to the general population, but there will always be those who are disadvantaged, and those who have increased advantages. In this report the authors attempt to separate the above mentioned elements and treat them individually. It should be noted however that it is extremely difficult to do so as many issues interact and overlap with some or all of the elements of globalisation, as globalisation has been in existence since the stone-age. “Just as the concept of globalisation is contested and multifaceted so are the choices available to citizens and governments.”[i] Introduction How one views ‘the effects of globalisation on Australia’ will very much be determined if one defines globalisation in its broader sense or otherwise. Globalisation seems to be the catch phrase of the 21st Century...
Words: 2370 - Pages: 10
...Globalisation and Rising Inequality in Australia Is Increasing Inequality Inevitable in Australia? Tom Conley Griffith University Introduction I want to dedicate my government to the maintenance of traditional Australian values. And they include those great values of mateship and egalitarianism.1 10 years ago a Mitsubishi type development would have flattened people psychologically. Now they take it in their stride … 2 Policy-makers and commentators have long been cajoling Australians into accepting that they are a part of the global economy, which means an acceptance of a whole range of ‘new realities’. One of the major themes of the pro-globalisation position is that Australia has accepted these new realities and adjusted well to globalisation by embracing economic liberalism. The results, it is argued, have been overwhelmingly beneficial. John Howard points out the Australian economy has grown for fourteen years straight – a remarkable achievement by any standards. This success story of growth has tended, however, to override more disaggregated, negative analyses of social outcomes in Australia. A less sanguine part of this new globalising ‘reality’ appears to be an acceptance of rising inequality. Indeed, it is often implied that rising inequality is a spur for growth. The argument is that everyone is better off, it’s just that some people are better off than others. While commentary is often not explicit about the association of globalisation and rising inequality...
Words: 11217 - Pages: 45
...Purchasing Australian Made Goods and its Effect on Our Economy ABSTRACT The purpose of this essay is to analyse the effects of purchasing Australian made goods on the Australian economy in relation to determining the degree to which it is advantageous. The research concludes that in fact it is far more beneficial for consumers to purchase goods unbiasedly. The economic theory of a comparative advantage denotes that a country should aim to specialise its production as to channel resources efficiently and achieve economies of scale nationally. The increasing trend in globalisation has meant an increase in the availability of goods and services increasing our Gross Domestic Product (GDP) through benefiting from increased trade and maxamising on the benefits of fluctuations in the international business cycle. The gains from free trade agreements such as advances in technology and capital equipment have effectively made Australian production far more efficient. In combination, they provide a sufficient argument to conclude that purchasing goods unbiasedly is far healthier for the economy than strictly purchasing Australian made goods. Key Words: Globalisation, Comparative Advantage, Free Trade, Economies of Scale, Economic Growth, Production Introduction As more countries move toward a market capitalist model, a broader range of substitute goods become available, and this increase in choice between substitute goods proves a time consuming issue for the average consumer...
Words: 1679 - Pages: 7
...The slowdown in China’s growth has had a rippling effect with consequences seen in the Australian Government, Domestic Firms and even Multinational Firms. Due to the slowdown, implications that have been placed on the Australian Government have been ones such as a need for the restructuring of certain policies to be able to handle the increased exposure to the volatility of the commodity market. The government should ensure appropriate policies are in place to facilitate the management of risk in regards to this volatility. Seeing as how the price of iron ore has fallen by more than what the government expected at the time of the May budget, there is a need to look at the budget again as this may hinder any planned spending due to predicted government investment and income. With the Australian mining industry being held at such a high standard from the rest of the world, there is a need for Australia to retain as much revenue as possible. With the super-sized profits being reeled in by resource companies operating in Australia, it is up to the Australian Government and the implementation of the mining tax, as this would reduce the damage being felt by the exports industries such as manufacturing and tourism which has suffered due to the increased Australian Dollar (Jessica Irvine 2010). Other implications seen by the Government include a potential volatility in the relationship between the Australian Government and the Chinese Government due to a reduction in the...
Words: 2054 - Pages: 9
...In the context of IPE, what is globalisation? To what extent has the authority of nation states been eroded by globalisation? Discuss with reference to any OECD country. IPE and Globalisation In order to explain globalisation in the context of International Political Economy (IPE), I will begin by discussing the frameworks that IPE uses to describe the social constructs upon which human society is based. This discussion will then extend to issues pertinent to the essay question, including the concepts of globalisation, the nation state, authority and sovereignty, and the extent to which a nation state’s participation in a globally interdependent system influences that nation state’s authority. IPE connotes a multidisciplinary method of enquiry to explain the ever-changing relationships between states, markets and societies across history and in different geographical areas. IPE includes a political dimension that accounts for the use of power by a variety of actors including individuals, domestic groups, states, international organisations, NGO’s, and transnational corporations. IPE also involves an economic dimension that deals with how scarce resources are distributed among individuals, groups and nation-states. (Ballam and Dillman, 2011, p7) To place globalisation within the context of IPE, one must view the concept in terms of the causes and effects of the world market economy, the relationship between 2 economic and political change, and the significance...
Words: 3076 - Pages: 13
...Research Essay 3000 words Globalisation presents significant opportunities and challenges for business around the world. Are the environmental challenges and ethical dilemmas Fisher & Paykel currently face outsourcing manufacturing to a developing country beneficial to Australia? Globalisation can be described as the intertwining processes of the world. It is not only an economic process, which involves rising communication and integration of all countries’ economies through the growth in international trade and investment, but also the rapid cultural, social, technological and industrial exchange between nations (IYP, 2002, p. 11). Globalisation presents significant opportunities, as well as many challenges, for business around the globe. Many companies are currently making the decision to move production offshore to lower expenditure and increase profits. However, there are numerous environmental challenges, as well as ethical dilemmas involved with outsourcing. Throughout this essay I will show how globalisation is connected with the present issue of New Zealand’s ‘Fisher & Paykel’ (F&P) Brisbane plant outsourcing manufacturing of their whitegoods to Thailand. Shown by exploring the reasons and challenges involved both in the business environment and ethical arena. Such ethical issues under scrutiny at present are the loss of Australian jobs and the replacement of low wage employment offshore. After the analysis of various sources of information, it will be clear that the...
Words: 3913 - Pages: 16
...the Business Environment ‘Globalisation has wrought fundamental changes in the global economy and it is evident that the effects of globalisation are more positive than negative’ Assignment 1 Tutor: Robert Waldersee Author: Catherine Whitaker Student No: 211664327 Address: 7/59 Howard St Randwick 2031 Introduction What is Globalisation? Dutch academic Ruud Lubbers, on his website http://globalize.kub.nl/ defines globalisation as: … a process in which geographic distance becomes a factor of diminishing importance in the establishment and maintenance of cross border economic, political and socio cultural relations. Ruud’s definition draws attention to the following main points: • globalisation involves processes that transcend geographic and national boundaries, • these processes are of an economic nature, • there are political implications and considerations, and • socio cultural factors are also impacted. The issue of Globalisation has become a contentious one in recent years. Note the violent demonstrations in Seattle in 1999 and subsequent demonstrations by anti-globalisation groups such as S11. However there are many advocates of globalisation who support the ideals of free trade and free moving economies whose fate is left to market forces. The purpose of this paper is to examine some of the main issues associated with Globalisation and the current debate of these topics...
Words: 2371 - Pages: 10
...trade. Any country can participate to set up, acquire, merge industries, invest in equity and shares, sell their products and services in India. Therefore, globalisation should not be considered in isolation, but should be considered in totality with liberalisation of the industrial policy towards lifting of trade control and restrictions, influence of trade block and simultaneous privatisation. Global market treats the world as a single market. With the advent of information technology and its strategic application, the world is focussed as a global village and all traders are therefore globalised. The Earlier (pre 1990s) concept: Before 1990s India followed a patch of restricted trade. Such restrictions were that certain products would not be allowed to be imported as they were manufactured in India. For example, General Engineering goods, Food items, toiletries, Agricultural products etc. were in the banned list of import. Some other kinds of products which were produced in restricted quantity in the country or are expensive and categorised as luxuries were subjected to heavy import duty to make them costlier in order to dissuade flow of foreign exchange and give protection to local producers. For example, VCR, Music sets, Air-conditioners, Computers etc., these items were subject to 150% import duty. Globalisation in India: In the 1990s due to change in world economic order and...
Words: 1535 - Pages: 7
...Waller (2010) suggests globalisation has been a characteristic of human affairs for two and a half thousand years, and probably much longer (p. 1). Globalisation is a wide concept that affects cultural, social, technological and economic relationships (Sjøholt & Vatne, 2012). A prime example of globalisation being affected by these relationships is the 2007/2008 Global Financial Crisis. During the Global Financial Crisis, Australia demonstrated resilience as their economy growth continued uninterrupted (Merricks, 2012, p. 37). According to Adonis (2013), the Global Financial Crisis is the greatest example of ways in which globalization can spread toxically and rapidly, and the fragility that comes with globalisation. Furthermore, Boyd (2011)...
Words: 321 - Pages: 2
...how the rapid development of electronic communication and technology as globalising processes has impacted upon the standards of health care delivery in Australia. Back in the 18th and 19th Century there were no agreed standards for record keeping or even the requirements to keep them. Medical records were written on paper and kept in folders. Papers would get lost or misplaced and there were no secure way of storing records. Today technology is a critical ingredient in the health care industry. It is an important tool for the organisation and functionality. All health services consists of human interaction and the application of technology. With the introduction of computers in the 1970’s health services have benefited greatly. By transferring all documents from paper to electronic it has greatly improved the functionality, organisation and it also assists with managing the effectiveness of a safe and efficient work place. Not only has it dramatically changed they way we record, store, access or communicate information but it is quick and easily accessible making it more time efficient. With the improvements and break throughs of technology, health care professionals are able to access a wide range of resources and information thanks to the introduction of the Internet in the early 1990’s. Now in 2015 globalisation allows the transmission of knowledge at a much greater pace than in the past. The first iPhone was released in 2007 and they have been the standards of phones...
Words: 559 - Pages: 3
...GLOBALISATION AND HIGHER EDUCATION DEVELOPMENT: A CRITICAL ANALYSIS RUI YANG Abstract – This article sets out to analyse critically the nature of globalisation and how it is affecting higher education. The author first reviews the nature of globalisation, and then examines its international impact on higher education development. He contends that globalisation is predominantly economic, and points out that global exchanges in the economic, cultural and educational domains continue to be unequal. At the same time, education is increasingly treated as a business. By exposing the negative side of globalisation and its effects on universities, the author aims to counter the uncritical acceptance of globalisation as a positive force for higher education and society as a whole. Zusammenfassung – Ziel dieses Artikels ist eine kritische Analyse der Natur der Globalisierung und ihrer Auswirkungen auf die höhere Bildung. Der Autor beginnt mit einem Rückblick auf die Eigenheiten der Globalisierung und untersucht dann ihren internationalen Einfluss auf die Entwicklung der höheren Bildung. Er behauptet, dass Globalisierung vorherrschend wirtschaftlicher Art sei und weist darauf hin, dass ein globaler Austausch in wirtschaftlicher, kultureller und erzieherischer Hinsicht ungleich bleibt. Gleichzeitig wird Bildung immer mehr als eine Art Geschäft behandelt. Indem der Autor die negative Seite der Globalisierung herausstellt sowie ihre Auswirkung auf die Universitäten, will er der unkritischen...
Words: 9997 - Pages: 40
...China has benefited more than suffered. In 2001, China joined the World Trade Organization in response to the globalisation trend and reduced its trade barriers, opening up to foreign investments and international trade. This was beneficial to the economy as it further brought major beneficial changes in its economy such as having access to the world market, attracting foreign investment, adopting new ways of management and the access of new technologies. Additionally, to further contribute to their high economic growth levels, China introduced a 5-year economic program in 2010 to build socialised harmonised countries in order to balance the wealth distribution, improve education, Medicare and social security. This has already began to increase China’s level of GDP by 45% and their Human Development Index (HDI) has risen by 0.3 in the past 40 years. However, recent trends show that despite the improvements in economic growth and development in China, in recent decades, the richest 10% of the Chinese population (mostly living in coastal cities) owns 45% of the nation’s wealth, while the poorest 10% own only 1.4% of it. The coastal cities benefit more from globalisation because of its closeness to the rest of the world. This uneven distribution of income shows that the improvements in the quality of life are not equally shared Through its acceptance of globalisation, China has been able to maintain consistently high growth, which has allowed for improvements in social development...
Words: 1794 - Pages: 8
...and economic progress. Song (2006) likewise claims that globalisation “encompasses myriad fluid networks of increased human communication and interaction, global consciousness, system of interdependence and societal restructuring with far reaching consequences” (Song 2006, cited by Metcalfe and Reese, 2010). But when doesglobalisation begun in the Philippines? Does it come during the Spaniard colonization, the American occupation or probably during the arrival in Manila of thosestately galleons from Mexico. According to O’Rourke and Williamson, globalisation existed even during the time of Columbus, but its dramatic change in almost all parts of the world has been felt only during the dawn of the nineteenth century (O'Rourke& Williamson,2004). As globalization progresses in the Philippines, it had brought both positive and negative impacts specifically on women. Women has always been considered in the context of globalization, since they are the ones who always suffers itsnegative impact. Hence, their condition must always be considered in order to promote just, rational and fair globalization (Dejardin, 2009). The selling point of globalization is that it helped improved the economic condition of women. But this seems to be untrue specifically on the case of thosewomen in the working sector considering that they are always the one who is most vulnerable to the effects of...
Words: 1005 - Pages: 5
...transport and communication networks possible and more convenient. This means that people and countries can exchange information and goods more quickly and in a less complicated way. This is called globalization. Since, there is an active trade among countries, the products that are manufactured are affordable. The products can be purchased by more people since they are priced cheap. However, the trade of economic goods and products are not only the matter that takes place, but also services, knowledge, cultural goods and even languages. Simply, globalization can be described as the borders being removed so that countries become economically, socially and politically interdependent on one another. There are both benefits and consequences to globalisation for developed and developing nations which impact aspects of society such as employment, level of foreign investment, brain drain/gain and aid (UNESCO, 2014). Globalization has helped countries to developed greatly in all the economy and society. Researchers from different parts of the world have gone through this topic and there are some of them who believe that the whole world could benefit from globalization and every countries enjoys the benefit of globalization (Zhang & London, 2011). For instance, let's take the current employment situation of Germany. Germany has one of the lowest levels of unemployment. In 2013, Germany's average unemployment rate is 5.3%. At present, the chances of getting a job is outstanding in a number...
Words: 1669 - Pages: 7
