Impact of Globalisation Global Economy

Question: Discuss about the Impact of Globalisationfor Global Economy. Answer: Impact of Globalisation on own Life and Country Globalisation has made national and global economy more integrated and interdependent with one another. The way globalisation has shaped the world in just two decades is unimaginable. Globalization has transformed the roots of human civilization as well as the industries in a different way (Stromquist and Monkman 2014). Along with these developments, globalization has created great challenges as well. With the ongoing process of globalization, the cost of things has reduced to great extent. The taxes and tariffs have got a formal shape. Australia has also opened up its economy to the world in the late 80s. At that time, the nation was suffering from a back lag in its economy (Hirst et al. 2015). There was a declining economy and high rate of unemployment. This situation leaded the nation to open up its door for the globe. The four major business sectors, namely, manufacturing, service, agriculture and the mining industry saw the boost in its sector like never before. This era can be easily marked as the end of protectionism Australia welcomed major foreign firms and investors to do their business in the country. This has also improved the living standard of the people of the nation (Claessens and Van Horen 2015). There is no doubt that the consumption pattern has changed to a large extent. Australia has never seen the number of restaurants and shops that is found in the recent time. Availability of too many options has affected the way I used to consume. Now I look for various options before setting into a particular one. I have tried so many food items from different countries that have been possible due to globalization only. Companies are no longer finding it feasible to carry out any manufacturing activity in a country where the wage rate is high (Stromquist and Monkman 2014). Instead major business activities have been found to shift to other countries where the wage rate is low. Most consumer goods are labour intensive and finding out better options to reduce the cost of manufacturing has reduced the option of competitive advantage of the major business bodies. Australia is getting flourished with the huge supply of products like textiles, footwear, paper and other from the countries li ke China, Indonesia, India and Thailand. On the other hand, it has also been noticed that Australia is losing its low tech manufacturing and has been focusing in high tech manufacturing units (Baylis et al. 2015). This has significantly lowered its manufacturing cost and has provided greater opportunity for the manufacturers as well as the consumers to sell and purchase things. The age of globalization has not only affected the manufacturing sector but the service sector as well. Service sector of Australia takes up 50% share of GDP (Hirst et al. 2015). These sectors include, retail, communication, financial institutes as well as education and tourism. Globalization has strengthened the economy of the market and has made the consumers confident enough to thrive in their relationship with the emerging market (Baylis et al. 2015). The GDP of the nation has grown by more than 7% per year with an increase of 12% of FDI (Claessens and Van Horen 2015). This has automatically given better opportunity to the market of Australia to expand their business even in the fluctuating business market situation. I believe that this way I shall be able to identify better options in my career in future. With the detailed discussion, it can be said that the market situation has changed drastically and so is the consumers behaviour. Globalization has reduced the competitive advantage of many companies and has helped in creating better opportunities for international firms and companies to operate in the global market. This way, consumerism has changed a lot due to globalization. Every individuals life has been affected. There are more options available in the market for the consumers than it used to be. Thus, globalization has changed the way of living by decreasing competitiveness and mitigating increased regional operations. All these changes have influence our regular activities and will also put impact in future. References: Baylis, J., Smith, S. and Owens, P., 2013.The globalization of world politics: an introduction to international relations. Oxford University Press. Claessens, S. and Van Horen, N., 2015. The impact of the global financial crisis on banking globalization.IMF Economic Review,63(4), pp.868-918. Hirst, P., Thompson, G. and Bromley, S., 2015.Globalization in question. John Wiley Sons. Stromquist, N.P. and Monkman, K. eds., 2014.Globalization and education: Integration and contestation across cultures. RL Education.