Impact Of Globalisation In Australia

1479 Words6 Pages
Globalisation is the developing economic interdependence among nations reflected in increasing actual movements across nations of trade, investment, technology, finance and labour, with the ability to move and the potential movement across nations with those five elements. Australia’s involvement in trade, investment, financial flows, technology transfers and the migration of labour since its foundation as a colony, has impacted and changed the structure of Australia’s trade, with considerable growth in manufacturing and service industries, with limited growth in the rural sector. The car manufacturing industry in Australia had high levels of protection in motor vehicles, with an effective rate of protection, in excess of 200% and 57.5%…show more content…
With high salaries being offered overseas, highly skilled labour has been drawn from the Australia, as the value of the Australian dollar is low. In recent decades, the Australian Government has been moving Australia into the International market place, with ongoing structural reform taking place. The reforms in include tariff, financial market, tax and labour market reforms, with enhancements of the national competition policy and foreign investment rules. In the early 1980s the Australian tariffs used to be high, with the import duty close to 60 per cent. However, the Motor Industry Development Plan in 1984, led to a reduction in the tariff assistance. Therefore, meaning that the tariff rate on passenger vehicles and parts declined by 2.5 percentage points each year during the year of 1988 until 2000, with another reduction of 5 per cent in 2005. The treasury stated that the prime focus of reforms has been subject to the private sector in Australia for more competition from both domestic and international sources, but to improve the performance of public utilities. Financial traders, such as the car manufacturing industry, rely on low inflation, low interest rates, low current account deficit, high growth, budget surpluses and a small public sector, in order to make profits. However, Australia is
Open Document