Embracing globalisation: how Australian business connects to world markets
20 October 2017
Most of what we consume – from our clothes and smartphones to our thirst for finding answers on Google – is a result of globalisation. With these wonderful benefits delivered to our fingertips, it can be easy to take them all for granted. But how else do we prosper from this growth in culture, knowledge, ideas and – ultimately – money?
Our daily rituals are made easier or more enjoyable, thanks to blurred borders and seamless trade, but what are the trade-offs? How is Australia dealing with globalisation and what happens if we choose to reject it?
The opposing arguments to globalisation
It may seem like a conservative view, but opponents of globalisation see more merit in isolating our industries and cutting ourselves off from international business. Why? Australia is lucrative in many industries, including wool and, recently, minerals – we are the world’s top producer of ilmenite, bauxite, rutile, iron ore and zircon. Our products are highly sought-after by foreign buyers – but because of our high standard of living, our manufacturing costs are greater. Larger corporations cut costs by taking this process overseas.
The argument of rejecting globalisation is that our local industries won’t be threatened by the outsourcing of labour and products will be made proudly here in Australia.
Is opposing globalisation realistic?
One the reasons we prosper so much from the goods we produce is due to globalisation. Technology and international investment have allowed us to develop our industries and create more competitive offerings. For example, without an original import of Spanish merino sheep, and an international market demand for Australian wool, our wool industry wouldn’t be nearly as fruitful as it is today.
Some of the world’s most life-changing advancements had humble beginnings in Australia, too. Incredible technologies like Wi-Fi, the electronic pacemaker and the black box flight recorder (to name a few Aussie inventions), wouldn’t have had such a positive impact on the world without globalisation to leverage them.
The implications of rejecting globalisation
Rejecting global markets would inhibit the sharing of our national advancements and could diminish our ability to develop our trades further. Not only would this be devastating for our economy, but as seen by the significance of our contributions above, for the world. Over the past decade, we’ve seen Australia fall from 10th place in the Global Competitive Index to 21st. With the future rapidly moving forward, our focus should revolve around establishing an economy that’s globally competitive – one that thrives on the same playing field as world’s most powerful players.
Globalisation is a pertinent influence on today’s rapidly evolving business environment. Professionals are required to understand international trade to make appropriate decisions for their businesses. An MBA at Southern Cross University can equip you with the skills to thrive and adapt in such a complex landscape – giving you the power to take your career to the next level.
To learn more, speak to one of our expert Student Enrolment Advisors today on 1300 589 882.