Essay Global Integration

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Global Integration

“Global integration is shrinking time, shrinking space and eroding
national boundaries.” (IMF & World Bank) Globalisation possibly the
most important force at work at this time in history describes the
process of increase integration and interdependence between national
economies. It depicts the breaking down of national boundaries leading
to the establishment of a single world market. This inevitable process
of globalisation has and will continue to be accelerated by the
electronic revolution. Advancement in telecommunications and
information technology has lead to growth in cross border
relationships initiated by the drivers of globalisation. Embracing
globalisation is
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This can be seen
through Australia’s trade pattern with exports rising from 12per cent
of gross domestic product (GDP) in the 1980’s increasing to be worth
20per cent of GDP in the 1990’s. With exceptional statistics similar
to this, the rapid growth in the global economy facilitated by the
electronic revolution is anticipated.

Forces of Globalisation

The opportunity to join the global economy is open to every nation;
the driving forces are generally supported by all governments in
pursuit of the substantial rewards. The forces underpinning
globalisation are the liberalisation of global trade; increase
specialisation of products and services; and the improved levels of
technology and communications reducing costs.

Liberalisation of trade has been made possible through the formation
of the World Trade Organisation and several other regional trade
agreements. The establishment and operation of these trading blocs has
been made possible through the electronic revolution. The efficiency
of the trade agreements due to the accelerated technology contains
many long term benefits for member nations. Prime Minister John Howard
outlines the benefits of trade liberalisation with reference to the
proposed bilateral trade agreement with the United States. “A free
trade agreement…