Effects of Globalization in Australia - Literature review Example

Student Name: Tutor: Title: Effects of Globalization in Australia Institution: Date: Table of Contents Table of Contents 2 Executive summary 3 Introduction 4 Impact of globalization on the environment 5 Impacts of globalization on the economy 6 Impacts of globalization on culture 9 Globalization entails the possible impact of change in the worldwide market on the economies. This implies that businesses arrange policies aimed at aligning prices and employment based on the factors that are likely to take place incase other producers come into existence (Stokes 2006). The Australian governments as well as the employers make use of the features to press on the labour market together with the workplace reforms. This takes place in Australia with the aim of ensuring that conditions remain favorable for both the job creators and the Australian citizens. 10 Conclusion 11 Bibliography 13 Women’s health Council, 2008, What is globalization? Retrieved on December 28, 2011 from 13 http://genderandhealth.ca/en/modules/globalization/globalization_what_is-01.jsp 13 Executive summary According to Women’s Health Council (2008 p.1), UN defines Globalization as the integration of different cultures, societies and economies as a result of trade and international investment. According to Braathens (2010 p.76) it is a situation whereby markets become global and not national due to the fact that barriers to international trade such as tariffs become minimal and means of transport and communication are enhanced. The propensity of larger multinationals Companies grow to the extent of serving global markets. It has enabled the establishment of several business, cultural and personal relationships between Australia and other nations. Globalization has led to increased movement of people, capital, labor, investment and trade among nations. Globalization is a common fact. Australia as a nation has been involved in trade, investment and financial flows. The country has also got involved in technology transfers as well as the migration of labour ever since its establishment as a colony. The only things that have changed are the direction, size and conditions of the transfers. The transformations have been aided by various factors (Stokes, 2006 p.1). It is a set of beliefs that are specifically aimed at enhancing connectedness among individual with the sole aim of improving their state of living. Emphasis on international financial transactions and elimination of international trade restrictions become the driving force behind Globalization. There has to be increased use of technology and global movement of people, ideas, goods and capital have greatly influenced Australian economy, culture and the environment. The paper critically looks at the impacts of globalization on the environment, the economy, and culture in Australia (Clayton, 2007). Introduction Globalization refers to the integration of different cultures, economies and societies a procedure driven by international investment and trade assisted by information technology. It is an umbrella phrase that defines the ongoing procedure of establishing several personal, business and cultural relationships with other nations and this procedure represents a rising view of the globe as a community. According to h and Slaughter (2009 p.44), Companies and people are interacting with one another in diverse nations more than before. Personal communication has increased and companies and nations are opening markets to foreign nations instead of delivering services and products domestically. Globalization has effects on culture, the environment and economic development and prosperity in Australia (Smith, 2007). Impact of globalization on the environment As human population has increased and leverage offered by technology increased, human effects on environment has reached global scale. Braathens (2010) notes that the major positive effect that globalization has on environment is that there are improvements in the utilization of resources and awareness. Globalization ahs also resulted to more research been undertaken to create greener technology which has helped in improving the utilization of resources and environmental conservation through promoting growth via development and improving incomes and education. The major negative impacts of globalization on Australian environment are the effect of export orientated destruction (Braathens, 2010). The overutilization of natural resources as a result of increased demand and the removal of ecosystems as a result of population growth have led to huge negative effects on the environment. Widespread deforestation has occurred in Australia with logging industry being stimulated by the requirement for disposable products. Deforestation is leading to biological diversity loss. In Australia, a huge percentage of indigenous wood is exported, an activity that is harming the country’s natural heritage (Braathens, 2010 p.78). Forest transitions have a greater negative impact in climate change biodiversity and climate change of a region through influencing accumulation of greenhouse gases and water quality via the re-growth of a new forest into the second as well as third growth forests. Forests are exposed to forest transitions, a period of reforestation and deforestation, as the surrounding community becomes highly developed, sustainable and industrialized. According to Lodfahl, (2006), Globalization also has negative effects on the environment via global warming as a result of greenhouse gas emissions due to an increase in industrialization and high dependence on fossil fuels. The release of carbon into the atmosphere has led to global warming and rises in sea levels as glaciers and ice sheets melt which has widespread effect on weather systems and biodiversity. Lodfahl (2006) argues that average global temperatures have gone up 0.6°C since lat 19th century as a result of humanity’s release of greenhouse gases like carbon dioxide. As a result of globalization, transportation and produced gases has become a huge contributor to global warming. Lodfahl (2006) states that approximately 95 percent of traded goods in the entire world are transported by maritime mode of transportation, which in turn releases huge amounts of sulfur oxides and nitrogen oxide emissions. Due to globalization and consequent industrialization, climate change is occurring as a result of pollution made by industries. The areas surrounding the industries are turning into slums and waste products released from these industries is influencing fauna and flora of the domain (Lodfahl, 2006). Impacts of globalization on the economy Dreher et al, (2010) argues that globalization has greatly influenced Australian economy. It is leading to increasing economic independence between Australia and other nations, as reflected in movements of trade, finance, technology, labor and investment. According to Dreher et al, 2010), globalization isn’t a new concept, but the speed of incorporation of economies has accelerated and economies are highly closely incorporated than previous times. Trade is playing a key role in emergence of an international economy. Over the last decade, the level of trade between Australian and other countries has grown rapidly. This rise in trade volume is due to the decrease in protection and liberalization of trade processes, along with increase in TNCs and global organizations (Dreher et al, 2010 p.101). According to an article published by the Government of Western Australia (2002), economic integration is enhanced by a various processes across national boundaries. The processes entail the increase in short term capital flows together with size and capability of the various multinational corporations. There is also the consistency of technology and the speed through which the associated events and ideas are presented globally. The Australian government has focused its policies towards elimination of trade barriers within industries that were highly protected. Smith ( 2007) argues that in the past, Australia had greater levels of defense in industries like clothing and textiles and footwear industries and manufacturing and motor vehicles sectors. In general, the Australian government has greatly diminished protection in order to promote international trade. These cuts in protection has led to increased efficiency and increased imports and led to a comparable increase in trade balance and exports (Smith, 2007). Economic integration entails foreign direct investment and international trade. Marshall and Slaughter (2009) argue that because globalization supports openness, Australia has opened itself to foreign nations in terms of trade, capital and labor. A universal increase in opportunity, transportation and communication and information technology has permitted individuals from diverse nation to move into Australia in search of jobs or new homes. In addition, money or capital is being globally moved with the easy use of electronic transference and an increase in distinguished investment opportunities. Australia is a common place for individuals to make investments because of the immense opportunity for growth (Marshall & Slaughter, 2009). According to Glyn, (2006), as a policy of globalization, deregulation has lead to removal of trade restrictions and reduced involvement of government to allow business organizations to work effectively and get more profit. This permits Australian businesses to offer a wide range of goods and services at lowered price to improve standard of living of the citizens. Nevertheless, this has led to unequal dispersion of wealth in the larger society and also assisted organizations to exploit natural resources to a level that is extremely damaging. This is because these businesses are only concerned with the maximization of profits other than on welfare of human beings and the ecosystem (Stieglitz, 2007 p.55). Smith (2007) argues that technology is a key driver of globalization and progresses in information technology have dramatically changed Australian economic life. Information and communication technologies have offered all types of individual economic actors such as consumers, investors, and businesses useful new tools to identify and pursue economic activities, entailing more informed and faster analysis f economic trends all over the globe, simple transfer of assets and cooperation with partners. An invention that has brought the world closer is the internet of Worldwide Web. The utilization of internet has made communication more affordable and easier in Australia (Smith, 2007). According to Scholte, (2007), the most lucrative and greatest purpose of internet is electronic marketing. Trading across the internet is highly beneficial and industries have thrived as they are capable to reach a wider demographic and expand their customer bases, thereby raising their sales. The utilization of internet has grown for both cultural and domestic functions. Scholte (2007) states that with the assistance of electronic commerce, selling and buying of goods has been made possible over the internet. Globalization has resulted to organizational integration. Australian manufacturers are becoming closely connected with those in diverse nations and are able to establish and run business organizations abroad. This has consequently led to increased exchange of overseas currencies (Scholte, 2007 p.45). Impacts of globalization on culture Globalization has led to social and cultural interaction as people are living within a social community. Globalization has widened contacts amid individuals and their ideas, ways of living and values in unprecedented manner. With the introduction of contemporary technology, the conceptual gap of the globe has incredibly reduced. Information and communication technology has brought individuals together and individuals from all over the globe are able to communicate with each other with great comfort and ease (Women’s health Council, 2008). Globalization entails the possible impact of change in the worldwide market on the economies. This implies that businesses arrange policies aimed at aligning prices and employment based on the factors that are likely to take place incase other producers come into existence (Stokes 2006). The Australian governments as well as the employers make use of the features to press on the labour market together with the workplace reforms. This takes place in Australia with the aim of ensuring that conditions remain favorable for both the job creators and the Australian citizens. Populaces imitate the global flow of labor and capital markets in the form of merger of cultures and immigration. Economic measures and foreign resources are impacting diverse native cultures and resulting to assimilation of indigenous people. The cultures used to be impounded in to local areas in premodern society, but advances in technology now permit populations to break barriers of space and time. In modern society, cultures are able to freely move from remote regions of the globe to biggest cities (Forsyth, 2000). Storey (2007) argues that global travel has become less expensive, easier and faster , leading to increased individual to individual sharing of cultural and social values between Australia and other nations. For several people, the cultural and social impacts of globalization is exciting and empowering, but for others, its is disempowering and disquieting. Storey (2007) argues that these people fear that Australia is becoming fragmented and their values are at the risk of being lost as increasing figures of migrants bring international trade and new customs and contemporary communications media plague each corner of the globe, dislocating local culture. Indigenous communities such as Aboriginals and starter islander see globalization as an intimidation to their cultural identities and regulation of their territories and traditions of artistic expression and knowledge. They feel that the cultural importance of their knowledge and territories will go unidentified (Storey, 2007 p.67). Globalization also influences Australian cultural liberty. The global movement of ideas, people, capital and goods is being viewed as risk to the national culture. They may result to abandonment of customary practices and values and dismantle economic foundation on which survival of native cultures survive. When these global flows results to cultural exclusion, there is the need for multicultural policies to address immigration, investments and trade in manners that identify cultural identities and differences Globalization is also resulting to cultural homogenization in Australia, whereby different national cultures are providing way to a world controlled by foreign symbols and values (Conley, 2008). Conclusion Globalization has greatly affected Australia in economic, cultural and environmental dimensions. It has led to global warming due to greenhouse emissions and deforestation as a result of industrialization and increased dependence on fossil fuels. In the economic dimension, globalization has led to increased economic independence amid Australia and other countries due to free movements of finance, trade, investment technology and labor. The free movement of people along with technologies such as radio, television, print media and the internet has led widened social and cultural contacts amid people and spread of universal cultural values and ideas in the country. Worldwide travel has become faster, less expensive and easier, resulting to increased interpersonal sharing of social and cultural values between Australia and other countries. Bibliography Stokes, A., 2006, The Impact of Globalization on the Australian Economy. Retrieved on January 9th, 2012 from Conley, T. Globalization and the Rising Inequality in Australia: Is increasing Inequality Inevitable in Australia? http://www.adelaide.edu.au/apsa/docs_papers/Others/Conley.pdf Government of Western Australia (2002). Globalization and the Western Australian Economy. Retrieved on December 9, 2012 from http://www.treasury.wa.gov.au/cms/uploadedFiles/globalisation.pdf Women’s health Council, 2008, What is globalization? Retrieved on December 28, 2011 from http://genderandhealth.ca/en/modules/globalization/globalization_what_is-01.jsp Braathens, N, 2010, Globalization, transport and the environment, OECD Publishing, Australia. Dreher, A, Gaston, N, & Martens, P, 2010, Measuring Globalisation: Gauging Its Consequences. Springer, New York. Glyn, A, 2006, Capitalism Unleashed: Finance, Globalization, and Welfare, Oxford University Press, Oxford. Lodfahl, C, 2006, Environmental impacts of globalization and trade: A systems study, MIT Press, Massachusetts. Marshall, R, & Slaughter, M, 2009, International Trade in Services and Intangibles in the Era of Globalization, The University of Chicago Press, Chicago Scholte, J, 2007, Globalization: A Critical Introduction, Palgrave Macmillan, UK. Stiglitz, J, 2007, Globalization and its discontents, Routledge, London. Smith, C, 2007, International Trade and Globalization, 3rd edition, Anforme, Stocksfield. Storey, J, 2007, Inventing popular culture: From folklore to globalization. Wiley-Blackwell, Oxford. Read More