The paper "Factors Contributing to the Growth of Globalisation" is a perfect example of business coursework. Recently, almost all the sectors of economic policy have been overtaken by the concept of globalisation in the entire world. Its effects have been felt on most government decisions pertaining to macro-economic policies either directly or indirectly. Globalisation has been a powerful phenomenon that history has not recorded in recent times to affect developing nations together with their finances as well as trade institutions and their policies. It has transformed the flow of thinking towards technology, trade and foreign investment among others.
Perception of a nation’ s progress has been diverted by globalisation; the progress relies strongly both on the domestic resources and what the nation gets from other nations as opposed to the past (Narula, 2003 p. 1). This essay seeks to explore the concept of globalisation, factors contributing to its growth and its effects on Australian businesses and consumers. Concept of Globalisation The times we are living are characterised by many worldwide changes. The occurrences of one part of the world affect the inhabitants of another part of the world.
Common developments influence individuals all over the world (Schaeffer, 1997 p. 1). This is the phenomenon that illustrates the concept of globalisation. Harris holds that the concept is today used in different contexts (1993 p. 775). A broad context in which it is applied is in the media where it is used day in day out to describe a wide variety of economic, environmental, sociological and political trends. The concept is used in a narrower context in the world of business to mean the production, distribution and marketing of products as well as services at an international realm.
The progressive increase in globalisation is affecting every person in numerous ways. This is in the kind of food we consume, the type of clothes we put on, the numerous technologies that we employ, the modes of travel at our disposal and the kind of employments we pursue as they are all connected to globalization. Globalisation is transforming the world and making it like a global village. The essence of globalisation rest in offering liberty to a nation’ s economic frontiers to permit unrestricted international trade in services as well as goods, entry and exit of foreign capital as well as technology in addition equal treatment to both foreign and domestic investors.
Intrinsically, globalisation describes the integration of economies of the world via uninhibited trade as well as financial flows, similarly via the mutual exchange of knowledge and technology. Globalisation also encompasses the free inter-country movement of labor. There are various forms in which the move towards globalisation is reflected like comprehensive decrease in tariffs, utilisation of different promoting measures, easier foreign capital inflows, permitting reach to foreign financial institutions and fiscal liberalisation among others (Narula, 2003 p.
1). Variables like labour and capital flows, the increasing significance of international trade and the technology transferred from other parts of the world among others provide a base for measuring the level of the integration brought about by globalisation. It is imperative to realise that the revolution in communication and information in addition to transportation technology has assisted in making the process of globalisation almost become a reality. The numerous benefits of globalisation are revealed by the increased trade.
The consumers as well as producers, in turn, get a wider choice of goods that usually integrate more improved technology. Theoretically, consumers and producers are able to reach indifference curves in a globalizing nation thereby displaying their higher level of satisfaction for the consumer while the producers enjoy higher levels of profits. Further, the size of the market is increased by opening the economy thereby assisting the producers to yield large economies of scale. There is also the benefit of increased international competition for the globalising nations.
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