Business owners must consider both the advantages and disadvantages of finding new international markets for their products. Including some statistics, analyze and evaluate the causes, trends and impact of Globalisation on the various parties involved in businesses, society and the economy.Globalisation is the increasing worldwide integration of markets for goods, services and capital. The causes, trends and impact of Globalisation play a large role in the functioning of the economy as well as the success of many businesses and the standard of living enjoyed by society. However Globalisation has both advantages and disadvantages that must be considered.Globalisation has existed ...view middle of the document...
This creates more employment opportunities in areas of absolute and comparative advantage. Free Trade agreements also benefit foreign policy as many countries are working together with common goals.As economies become increasingly open, trends are surfacing which contribute to the success of Globalisation. Exporting raw goods is becoming especially important to the Australian economy. The mining industry has boomed over the past decade, in 2006 coal accounted for 14% of Australian exports and totalled $23271 million in export value (AUSTRADE, 2008), $15314 million more than in 1996. (ABS, 2002). Service Exports are also crucial to the Australian economy. 54.3% of our service exports rely on Travel (business, personal, educational and other). This equates to $23771 million (AUSTRADE, 2008), which is $12015 million more in export value than a decade ago (ABS, 2002). These exports have been paramount to the success of the Australian economy on a global scale. Another trend that can be seen is the increased demand for Free Trade agreements. Australia has recently signed a Free Trade Agreement with the United States to allow a freer flow of goods and services between the two countries. This affects almost every area of trade; one example of change will be seen in travel. Cheaper flight to the United States will be available as American competitors will be allowed to fly in and out of Australia, as apposed the previous monopoly held by QANTAS (The Australian, 2008).Globalisation has impacted on many aspects of trade. Various parties have been subjected to benefits and costs as a result of increased Globalisation. Economies, such as China's have boomed as a result of Globalisation. China has maintained an annual growth rate of over 9.3% on average over the past 20 years (Peixin, 2003). Studies show that economies that actively engage in Globalisation have a 2.5% higher rate of growth (on average) than of countries that don't (United Nations Development Programme Globalisation, 2004). This also impacts on the country and the standard of living. The life expectancy in China has increased to 71.5 years recently because of the wealth brought about by Globalisation (Peixin, 2003). Businesses also prosper as they can make their product available to a worldwide market, which in turn results in higher profits. Toyota, for example has expanded manufacturing and management methods to 200,000 workers at 27 plants overseas over the past decade (Fackler, 2007). Making them one of the worlds leading car manufacturers and providing employment opportunities worldwide. Consumers are exposed to a wider variety of goods and services. Competitive prices allow consumers easier access to their wants and needs. Quality of life can improve with increased access to clean water, health care, better foods...
