Globalisation and the Australian Economy Essay -- essays research pape

The Impact of globalization on the Australian EconomyGlobalisation is non new. Australia has been involved in trade, investment, financial flows, technology transfers and the migration of labour since its foundation as a colony. What has changed is the size, direction and make for of these transfers, especially since 1980. There are a number of factors that flummox aided this transformation. They include     The expansion of new markets extraneous supplant and capital markets are linked globally. They operate 24 hours a day with dealings any where in the world possible in real time. Financial deregulation and the floating of the Australian dollar since 1983 escalate the impact of globalisation on the Australian economy.     New technology and the tools of globalisation the internet, email, mobile phones, media and communication networks have all sped up the process of globalisation. They have increased the spread and speed of knowledge transfer and communication. Australian consumers tidy sum buy products from any nation in the world, transfer funds amidst accounts or purchase shares in any major market. Australian businesses peck market their products at a fraction of the cost and be uncovered to a global market place of competition. This potentially is the closest we go away ever come to the perfect market.     New institutional players The World avocation Organisation (WTO) has growing authority over national governments, as does the IMF with its restrictions and controls it mountain impose on nations requiring assistance. Multinational corporations have more economic force out than many nations. Hedge funds and financial dealers are able to insure financial flows and subsequently exchange rates, leaving nations helpless in their wake. This in turn renders traditional economic policy tools virtually useless.     New rules and restrictions seven-sided agreement s on trade, services and intellectual property rights, backed by brawny enforcement mechanisms, reduce the scope for national governments to develop their own economic policies.What is Globalisation?Globalisation is the growing economic interdependence among nations as reflected in change magnitude actual movement across nations of     Trade     Inv... ...ly be quite efficient at pushing the Australian dollar down by marketing the currency, it is very limited in pushing it up. The RBA only has its limited international reserves to buy the Australian dollar. The value of Australias foreign reserves drip from $22billion US in December 1999 to $16billion US in September 2000. The do of Australian dollars traded in one day in Australias foreign exchange market exceeds its total foreign reserves. As was seen in the Asian crisis in 1997 in Thailand, running down foreign reserves will non always halt a currency decline. The US Federal bind is probably the only central bank that can strongly influence the decisions of fund managers.The financial traders and dealers seek a low inflation, low engagement rate, low current account deficit, high growth, budget surpluses and small general sector. If the Government does not extend to these policies, the markets will punish it. If they do achieve them, the markets may still punish them. Any way you look at it, Australia is integrated into the globalised world economy and is dependent on the activities and policies of globalisation. Australias emerging will move with the ebb and flow of globalisation.