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
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