The Effect of Globalisation on the Australian Economy

Table Of Contents

Table of Contents 3

Executive Summary 4

Introduction 5

Sources of Globalisation 5

Off shoring of Australian jobs 6

Income equality 6

Foreign Direct Investment 7

Local Investment in the Global Economy 7

Stability of the Australian Economy 8

Conclusion 8

Reference List 9

Executive Summary

The world’s economy is changing at an ever increasing rate. The rise of global markets and multinational enterprises which have developed over the course of a few short decades are a part of the phenomenon termed globalisation. With the numbers of the worlds ‘middle class’ particularly in the developing world growing at an exponential rate, falling trade and investment barriers as well as increasing technology the previous status quo of the world economy is now gone.

This report attempts to investigate globalisation and its effect on the Australian economy. In particular the areas of the ‘off shoring’ of jobs, income equality, foreign direct investment, local investment in the global economy, and the stability of the Australian economy are all investigated with reference to actual examples from the last few years.

The report finds that Australia has been significantly affected by globalisation. While there will always be arguments both for and against globalisation this report finds that globalisation has largely been beneficial for Australian and that Australia is placed in good stead for future developments.

Introduction

The world in which we live is changing at an ever increasing pace. No longer is the world viewed as a collection of hundreds of individual countries, but as a larger global community where people regularly interact and trade across borders (Wilson, 2009). The reason behind this phenomenon is known as globalisation and this report aims to discuss the effects that globalisation has on the Australian economy. In researching this report, literature will be drawn from academic and trade journals as well as...