Analyze the impacts of globalization on Australia’s trade and financial flows
o Investment TNCs
o Business cycle
ABS – statistics
Department of Foreign Affairs and Trade
Since the 1970s, globalization has been a world-wide phenomenon, changing the structures of many of the developed economies at present. Australia has been one of these countries that has been affected by globalization and therefore has impacted on Australia through investment in TNCs, an advancement and increase in technology and a more global business cycle. Imports and exports have also been gradually changing since the deregulation of our markets and has been changing the nature of the composition, value and direction of financial flows through Australia. This change has been allowed due to globalization and its components.
Globalisation has developed international trade inflow and outflows Australia through investment as TNCs have become Australia’s major investment and has allowed Australia to become a player in the market. Due to the deregulation of the market, Australia has attracted overseas investment into Australia whilst free trade policies have allowed Australia to extend overseas. Along with this, the accelerating nature of technology has occurred due to the innovation of present goods which has allowed the expansion and improvement off current technology goods. Another component of technology that has expanded the global economy is the use of internet as businesses, individuals and nations have been linked to one international economy. The international business cycle has been linked as well with the economic growth of the world determining this cycle. With globalization, the levels of economic growth in various countries are connected to create a global cycle of growth.
The composition of Australia’s grade has been changing gradually after globalization, especially with the less competitiveness...