International business - Essay Example

Globalization on the other hand is also associated with different businesses and financial risks. Globalization in context to Western Australia is no different from the rest of the world. It can have varied effects on different economies in the world. Various forces like investors, borrowers, financial institutions, etc. are affecting increased levels of financial globalization (Schmukler, Zoido, & Halac, n.d., p.1). Globalization describes the spread and interconnectivities of new advanced technologies, communication systems and production all over the world (Smith, & Doyle, 2002).

Various benefits to citizens of a country as a result of globalization includes admittance to increased varieties of products and services at lower costs, increased number of job opportunities, higher standard of living, etc (International Monetary Fund, February 2008). Globalization and its impact on Western Australia in terms of job opportunity, economic growth, concerns and factor will be discussed in an illustrated manner to have an overview as how Western Australia has dealt with globalization and its effects. . The political factors represent the current political stability of a country.

It includes the factors such as political changes, tax policies, changes in the restriction of trades, tariffs and the stability of the government. In the context to West Australia the government is very much stable. The government follows federal system. The tax policies as well as the tariff structures are well structured. Western Australia in over 50 year has shown relative growth in terms of output and employment. The share of employment and output of share crossed the 30% mark in recent times (Graph 1).

Population has played a major role in the growth of output in various industries in Western Australia (Graph 2). Immigration is the reason behind population growth which has vastly contributed to the industrial growth in this part of Australia (Collony, & Lewis, 2010). Graph 1 (Source: Collony, & Lewis, 2010) Graph 2 (Source: Collony, & Lewis, 2010) The trade policies of Western Australia and more specifically Australia have been to focus on international markets. Western Australia initiated the need for globalization for its domestic industries as well as import of products from low-wage countries was in the agenda of the government.

The main focus in context to structural reform is related to the building of competitive market for the private sector industry in domestic as well as global market. Globalization had a great impact on Australia’s trade which includes Western Australia as well. The globalization has made considerable growth in industries like manufacturing and service industry while rural sector has been affected (Graph 3). Graph 3 (Source: RBA, May 2012 a) The financial climate Globalization has established many new components into the financial market of