TNC's and Australia (1 Viewer)

[Saintly Devil]

I've been trying to find info on the impact of globalisation on Australia - in terms of internation convergence, eco growth, development and quality of life........etc. (as layed out in the syllabus)

but i couldn't really find any solid info about how globalisation has affected TNC's in Australia or what impact TNC's have had on Australia.

can anyone help?

Thanks.

 

[chunder]

you could relate the effects on tncs on Australia through figures in the current account and the KAFAs. The increasing levels of direct investment (gives some figs in terms of percentages of gdp or whatever) is a good indication of increasing influence of tncs on Australia. This paves the way for you to discuss the effects of excessive direct investment (e.g. increased economic volatility, increasing foreign control ......). If you want to be really good you could say that some of the effects i've mentioned have been irrelevant in recent years due to Australia's strong economic fundamentals (i.e. refer to Gittin's article dated JUly 7 2001)

 

[Saintly Devil]

yes, but what about some concrete examples?

Also, are there any other impacts of TNC's on Australia? for example, when BHP closed down its factory in Newcastle, it meant thousands of workers lost their jobs. are there any other examples like this relating other than just to employment and direct investment?

Originally posted by chunder
the effects of excessive direct investment (e.g. increased economic volatility, increasing foreign control ......). If you want to be really good you could say that some of the effects i've mentioned have been irrelevant in recent years due to Australia's strong economic fundamentals (i.e. refer to Gittin's article dated JUly 7 2001)

hmm....how does that work? how does good economic fundamentals render increasing foreign control and ownership irrelevant? it still remains a problem.
Do you know where i can get that article? its not on the smh site.

 

[chunder]

good economic fundamentals help "soften" the effects not so much in relation to increasing foreign ownership but more the issue of volatility caused by TNCs. For example during the Asian crisis there was't a great outflow of funds or closing down of factories as investors were aware of our economic integrity.

in relation to the article you probably have to go to your library and search thorugh some old papers. i got mine off my teacher and unfortunately i don't have a scanner.

you want more effects on Australia? well i really can't think of anything concrete. Chances are it won't come up in an exam as a direct question and if it does it certainly won't require direct links with Australia because the effects of TNCS are clearest in "export producing zones".

 

[bobo123]

globalisation has allowed firms to take advantage ofthe opportunities presented by exporting or establishing offshore subsidiaries.
Our TNCs are in mining and manufacturing as well as media and banking. (News Corp, BHP, NAB,etc)

as chunder said, TNCs bring foreign direct investment which means:

- possibly increased capital and technology
- possibly increased employment
- possibly increased imports (raw materials and equipment)
- possibly creating exporting or import replacement industries

However, the inflow of capital also means

- more debt servicing
- lost of control of resources
- a CAD