ideoGlobalisation: Globalisation is the economic unification of the world economic systems. It also involves the spread of business, trade and investment across international borders. It requires that all nations in the world become on economy instead of them being independent states. We have not yet reached a state of total Globalisation yet however over the past 200 years we have seen an increased trend towards Globalisation.
Globalisation has increased over the years because of many reasons number one being the increased technological advances over the years that have allowed transporting goods to become profitable and also governments have become more relaxed towards trade from other countries
There are many reasons for globalisation such as it will allow for cheaper goods in different countries for example china thanks to its large workforce can mass produce items faster and cheaper than Australia can thus boosting profits.
Thanks to globalisation Australians are able to by good quality goods at a faction of the old price, this has drastically lowered the inflation rate for example from 1990 through to 2006 inflation rates drooped a staggering 70%
Globalisation meant a rise in our GDP because of the competition introduced by overseas companies. Australian companies had to rise efficiency to stay in business it also meant that we could import newer machinery from overseas because of the cut in tariffs.
Thanks to globalisation incomes started rising by nearly 2.6% a year in comparison to the 1.4% before globalisation was introduced. Thanks to the increased average income of Australians this meant that tax revenues where also higher which meant better schooling systems and healthcare.
Globalisation in the long term has had very little negative effects on the labour markets it was only in the first few years of globalisation that we saw loss of jobs but these people all found new jobs that usually payed the same or even more at times. The only negative effects on the labour market where on the people who wouldn??™t adapt to the change.
The effects on Australia??™s financial market where that it was deregulated and subject to the global market and the pressures that it brings. It meant that our market became less stable and more likely to change more rapidly. However globalisation of our financial market has meant that our interest rates have remained lower that possible in an isolated market.
Consumer choice has become greatly widened by the advent of globalisation. It has given consumers hundred if not thousands of new choices and with the rise of internet shopping and the removal of tariffs have given consumers even more options. Globalisation has also given consumers cheaper options.
The Australian government became much more concerned with economic policies, meaning that the government ensured that measures where taken to keep inflation down and the governments budgets in check. As a result our tighter control over our budget has meant that our international credit rating has gone up. However thanks to globalisation the governments has had to watch over such things as illegal immigration, the spreading of diseases and terrorism.
Globalisation has become very important to Australia; it has given us jobs and money and has allowed us to travel overseas whenever we feel like it. Whilst it may have had some negative effects when it was first introduced the good effects weigh out the bad ones. This means that globalisation is a good thing for Australia.