Essays on Factors that Have Given Rise to the Globalization of the World Economy in Australia for the Last Decade Case Study

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The paper "Factors that Have Given Rise to the Globalization of the World Economy in Australia for the Last Decade" is a good example of a business case study.   Globalization refers to the increased integration of people from different cultures across the globe on social economic and political levels, though economic integration takes centre stage when it comes to globalization. Palmer (2002) defines globalization as "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global systems of production and exchange that has emerged as a result. " Globalization of the economy impacts heavily on the world as we know it today as it has an underlying effect on the economic, political, cultural, environmental and health aspects of our lives however small, directly or indirectly.

A closer look at the globalization of the world economy in Australia will reveal the reasons behind this driving force, especially over the past decade. Globalization is one among the most recent driving forces that are inevitably reshaping the world; actions that happen millions of miles away shape the lives of Australians as if to disregard the impacts of space and time.

The decisions that individuals, the government and the various companies make are the ones that shape the path that globalization in Australia takes. Australia is now so much intertwined with the global markets such that products from all over the world are accessible to them as well as Australian products and brands serving as viable export products to other countries. This has been aided by the deregulation of trade and the formation of strategic trading partnerships as well as the growth and expansion of multinational companies into the Australian market.

The service market offered by the increased expansion of the world-wide-web means that automation in the service sector is now a viable source of income for Australians as well as it being a source of unemployment (Griffin & Pustay, 2009). The increased speed at which information exchange and communication take place comes to the increased pace at which trade occurs. Australians are able to purchase products manufactured in remote places through e-commerce as well as market their products. There is also a noted shift of power and control that the Australian government has over trade and decision making due to the rise of international bodies such as the IMF and WTO that fund the international economy.

Due to the vast amount of resources that international bodies posses, they can impose sanctions and embargoes on countries that fail to comply with the rules that promote global economic integration, Australia included. Globalization takes centre stage through various economic avenues such as trade, investment, technology, finance and labor. The control and movement of these avenues on the world economic stage dictate the path that globalization takes and as such the case of globalization in Australia can be analyzed by taking a closer look at these factors which can be said to be the drivers of globalization in Australia. Trade-in Australia Australian domestic industries have experienced competition in the global market since the turn of the century and all signs show that they are coping better than predicted from the reduced protection from the government and increased exposure to the world market.

There were concerns that reduced protection would lead to unemployment though these have not been the case.

The growth of Australian export industry has been marked by Australia becoming a major exporter of mineral products as well as services to markets in Asia such as Japan and China. Education services and tourism are the major services that the Australian economy exports. The major export destinations for Australian products are all Asian countries. China leads the way with 26% of all exports while other countries such as Japan, Korea, India and Taiwan following closely behind. Australia’ s major exports are iron ore concentrates, coal, gold, crude petroleum and natural gas.

The export industry in merchandise trade was valued at A$245 billion while that of export services was valued at A$50 billion (DFAT, 2011). The results of this growth have been phenomenal as Australia was least affected by the global economic recession due to the high demand for its exports from these markets in East Asia. BHP Billiton is an example of a company that has benefited from global trade. The company has operations in over 30 countries worldwide and has diverse operations in the mining industry such as aluminium, coal, iron ore, titanium among many others.

The operation management and running of BHP Billiton are diversified and equally modern so as to maintain the high standards that the company’ s reputation has established.

References

AFMA. (2011). Australian financial markets report. Retrieved 9th May 2012 from

http://www.afma.com.au/afmawr/_assets/main/lib90013/2011%20afmr.pdf

Austrade, (2012). Retrieved from http://www.austrade.gov.au/, Retrieved on 9th May, 2012.

Bryan, D. & Rafferty, M. (1999). The Global Economy in Australia, Sydney, Allen and Unwin.

DFAT (2011). Market Information and Research Section. Retrieved 9th May 2012 from

http://www.dfat.gov.au/geo/fs/aust.pdf

Griffin, R. & Pustay, M. (2009). International Business. 6th Ed. New York, Prentice Hall.

Palmer, T. (2002). Globalization is Grrreat!. Washington dc: Cato’s letters.

Stokes, A. R. (2000). 'The Nature of the Global Economy and Globalization’, Economics, Vol. 36, No 3, October.

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