Discuss the impact of globalization on Australia and other economies.

Globalization refers to the integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity hence becoming a global economy. This process has had a significant effect on economic growth, and development, trade, investment and TNC’s, income inequality, environmental sustainability and the role of financial markets all around the world including Australia.

Globalization has played a critical role in economic growth and development affecting countries in different ways. Due to globalization developing countries have greater opportunities to expand their economy by producing goods for the global consumer markets and experience a greater access to new technologies and foreign investment. Developing countries, such as China and India have experienced rapid economic growth and major improvement in their economic developments a result of policies that have been put in place to increase international investment and export strategies to other nations. This is beneficial as their income levels and economic growth increases. Hence there is a possibility of converging income levels and narrowing the gap of inequality.

On the other hand, globally integrated and advanced economies experienced comparatively weak growth due to globalization in the past 2 decades.   Highly globalized financial markets like US and Europe suffered worst effects of the late 2000s global rescission. Globalisation has also contributed to negatively to other growth outcome such as through foreign indebtedness in Africa and Greece, and exchange rate volatility in Latin America. However some aspects of globalization has benefited Developed economies. TNC’s such as Toyota motors, Mc Donald’s, BHP Billiton etc have been able to take advantage of trade liberalization and the deregulation of financial markets, which has allowed them to access to...