Globalization in Australia - Essay Example

Globalization in Australia Question As many countries in the world struggle to restore their economic stability, Australia comfortably enjoys the success of its economy. A number of aspects have led to the success of Australian economy. These include rise in coal and iron export, consumer spending, capital growth, and low cost of living in its towns. Both volumes of exports and its revenues have risen in the recent past hence the country has been able to provide to its economy promptly. Consumer expenditure has also increased in Australia due to drop in rate of unemployment (McLean 3). Cities in Australia such as Perth and Brisbane offer attractive investment opportunities to potential investors leading to the rise in capital growth rate. Australian cities like Melbourne, Adelaide, Bribane and Perth are also known for the low cost of living prevailing compared to other capital cities in the world. These Australian cities are ranked top 30 globally for the high life quality. Current exchange rates against other currencies are exceedingly friendly in Australia hence making it ideal for foreign investors who wish to make purchases in Australia. The explanation for this is that they have the capacity to buy more than what they would have bought in their own countries with the same amount. Low interest rates in its economy enable investors get big loans from banks, which thereafter yield significant returns that boost the country’s GDP. The Australian government put a lot of money into available growth opportunities hence making it possible for the country’s economy to survive economic hard times (McLean 7). Question 2 Although Australia is ranked as one of the best-performed economies in the developed world, its citizens are pessimistic about their economy. Some of its citizens thinks that their economy over-rely on non-renewable natural resources for energy used both locally and for export,they claim that they may run at a loss when coal deposits are depleted from the mines. Other citizens do not enjoy the use of coal as a source of energy in their country, they claim that use of coal is one of the major contributors of global warming hence they ask the government to invest on other modes of energy production. Australian’s economy is dominated by small to medium sized enterprises. The entire country’s population thinks that these SME’s lack proper management teams compared to larger companies hence performing poorly in the economy. The citizens think that government should provide relevant training to the entrepreneurs to improve their performance. Further still, many citizens perceive the strength of the country’s currency negatively. They believe that it blamable for increasing unemployment rates as many people have lost their jobs in leading companies like Toyota. This has exposed how fragile the manufacturing sector is. Country’s economists blame the Australian dollar for damaging the market at international level. This is because, of the increase of prices of Australian goods. As a consequence, the demand of country’s locally produced goods is decreasing with a notable rate (Martin 1). Citizens have also noted that its government has not put enough money on technology development hence importing more than exports on ICT. Government is also blamed for making its IT purchases outside the country, yet same equipments are available in local companies. Question 3 China’s economic growth and technological advancement have drawn investors’ and government’s interest. As such, Australia should take the lead and welcome Chinese’s increasing foreign investment. Australia benefits from it both directly and indirectly. Given that Australia do not invest much on ICT, China gets to supply them with the ICT equipment since it is known as an of the ICT equipments exporter. If Australia accepts to trade with China government, it will get a chance to negotiate better prices on its ICT purchases hence reducing import costs. Australia also exports its agricultural products to China hence it qualifies to be accepted the country as a business partner. Nondiscrimination is one of leading principles of sound trade policy hence Australia should avoid discriminating Chinese and trade with them as the trade policies requires. Australia should put in consideration that investors from china who invest in Australia also creates employments to its citizens. This in the long run helps in improving the GDP. Australian investors in china also trade freely, they are not discriminated by the natives hence Australia should do the same and allow Chinese investors to trade freely in their country (Monk 1). Arguably, any technological advancement seemingly challenging to scientist has its roots in China. For instance, infrastructure is a sector that works hand in hand with economic growth. China as a country is leading in the provision of both infrastructure and communication. As such, welcoming the country to invest in Australia means that the country’s economy will be boosted from the provision of quality infrastructure and communication devices. Question 4 Australia has been on the process of rebuilding its reputation and therefore, it has been striving to establish stable economic systems and even proper diplomatic relations with other states. They have however, faced so many challenges from its external environment in the process. Through its diplomatic close ties, Australia, had always taken a front role in regional issues. It had participated in supporting its neighboring states both politically and economically. Its close links with Asia in controlling finances has led to suspicions that it may even collaborate with the Asian government. Its diplomatic relations with other states like Europe has helped in giving aid to disaster stricken Asia. For example, in cases of earthquakes, the Australian emergency services are deployed to the Asian states (Downer 1). However, the Japanese only want to absorb the Australian government into their system. This has resulted to struggles in the relationship between the two states. After helping, these Asian states stabilize, now the Australia looks weak and it cannot effectively perform its role and hence the Asian states take advantage of this opportunity to take control of Australia. The weakening of its diplomatic relations with other states has further weakened it because it is unable to ask for help. These Asian states are even sabotaging the security in the Australian government and therefore, this has massively affected the natives (Downer 2). This crisis has ended up in causing some of main institutions in Australia to target the financial systems of Asia to help maintain their stability. Australia finds it more rewarding offering their money lending services in Asia. This has therefore, helped them to keep their top position in credit ratings. Other banks and financial institutions have also joined Australia and therefore, the profits are negligible, and it may take unusually long time before they appear in financial sheets. Question 5 Insecurity cases in Australia had been in the rise due to interruptions from Asia. Since it had established close ties with U.S hence, this even resulted to U.S placing its troops in Northern Australia after its announcement by President Obama. This has given rise to different reactions from their neighboring states. The Asians claim that by doing this, the U.S is trying to arouse a cold war, though mentally and as a result, this has only caused tensions in the relations between Australia and Asian states. By laying its military bases in Australia, U.S strengthens the military power for Australia. However, it agitates the relations between Australia and its neighbors. Asian states have been in the lead to deteriorate security in Australia. Though they have succeeded to some point, Australia has received security boost from U.S troops, and this is contributing significantly in ensuring that its economy does not go far beyond the standard. Australia is closely neighboring Indonesia in Asia, and this leads to economic, social, military and economic ties between the two. The Australian military power has strengthened its alliances with Asia and therefore, this has been a key factor for maintaining peace and security between the two regions (Wade 2). Asia has been able to ensure that its natives live in a secure and friendly environment. This has promoted it developments in the economic sector, financial sector, and even politically. It has been made possible by the growth in the defense sector and hence giving people the courage to undertake their activities including investments and other urbanization projects. Work Cited Downer, A. “Australia Retreats From Asia”, Asia Link Essays, 2011, 3(4), Martin, Peter. Treasury Chief Talks of Golden Age Ahead”, Sydney Morning Herald, 3 June 2011 Read More