impacts of globalisation (1 Viewer)

[the wigged one]

im having troubles with teh 2001 hsc question on the impacts of globalisation:
"Analyse the impact of globalisation on Australia's economic performance"

structuring it is where im having troubles - i mean, i was thinking of going through teh features of globalisation, i.e., trade, investment, govt policy, international business cycle, and then relating them to Aust's economic performance, i.e,. predominantly growth and external stability.

but i find that it's difficult to relate trade performance with growth, and for that matter, each of the features of globalisation with aust's econoimc performance.

 

[Minai]

trade performance with growth?
well i suppose...u could say stuff like "Microeconomic reforms to encourage greater efficieny and productivity within local export industries helps aus industy become internationally competitive, contributing to greater export revenue and hence, and expanding economy"...?

u could also say stuff how export diversification can lead to growth...and aus.'s traditional primary produce is extremely volitile on global markets

 

[kaseita]

features of globalisation (and hence integration) include:

Increased technology and innovation - so increase in capital use, efficiency, unemployment, communication (cutting down on time lag), transportation (again, cutting down on time, and response, increasing flexibility)

Trading blocs and agreements - leading to free trade areas, improving trade, export markets, maximising profit, policy coordination (which leads to further increase in integration, actions against externalities and crises, improving responses to these crises), and also trade diversion, creation

Domination of MNCs - improves trade in general

Coordination of actions through agreements, groups (e.g. cairns) and international organisations (e.g. wto)- financial deregulation, protection levels falling, monetary policy coordination (in an effort to improve economic performance)

Increased openness and vulnerability to external crises - damages economic performance, of many countries, and Australia (contagion)

Then just give examples for each.

 

[the wigged one]

thanks for all that 'kaseita' - that sounded pretty good.
but i don't know how to link all that with austrlaia's 'economic performance' - i.e., growth, inflation, ext stability, etc... that's where i was having the problem.

 

[kaseita]

hmm ok, well if you increase efficiency (which includes technology, communication, economies of scale, transportation, flexibility, etc), capital use, aggregate demand (or export demand in this case), trade, lower protection, THEN, you improve economic growth, and therefore, economic performance

Increase policy coordination, financial deregulation, trade, then you improve the abilities of the government, to react to crises and problems, including inflation and unemployment.
1. Policy coordination - e.g. coordinating interest rate movements, between central banks across the world, has a larger impact on the global economy, and therefore Australias.
2. Financial deregulation - increases the ability of Monetary Policy to act, as the money supply is no longer impacted by movements in the balance of payments. Monetary policy of course, is used to influence inflation, unemployment, and economic growth
3. Trade - Increase trade, improve unemployment, but also will affect inflation if economic growth is too high. therefore has a large impact on australia's economic growth.

sorta getting the idea?

 

[Porphyria_J]

i would do it in terms of the syllabus..under the heading in topic one 'the impacts of globalisation'

obviously, the ones about income distribution adn the environment do not apply to the question so i wouldnt focus on it, but its nice to add in some things if you have time

my main emphasis - for more than half of my essay - would be on the impact of globalisation on govt policies, the last dot point....and from then on i would talk about the idea of microeconomic reform - which within that whole topic you can talk about reduction in protection, trying to cut down on our real unit labour costs and so forth.....

well..that's how i would approach it