Economics: Global Economy Essay examples

Submitted By ZaphidahK
Words: 871
Pages: 4
Open Document
AUSTRALIA AND THE GLOBAL ECONOMY

Globalization

Globalization: the expansion of business operations into other countries through the removal of economic barriers and increases in global technology

Global economy: The production, distribution and consumption of goods and services on an international level

Reasons for globalization * Rapid advances in technology (e.g. internet)
-Example
The internet makes the exchange of information between countries much easier as well as provides more potential global customers * Relaxation of laws regarding foreign investment
-Example
German owned supermarket has over 100 stores in Australia * Reduction of trade barriers and tariffs making the exchange of good and services much easier

Multinational Corporations (MNC)

Multinational Corporation: a business organization that operates in more than one country; their head office is based one country but they have branches in other countries

Examples * Mc Donald’s * Apple * Hyundai * KFC * Subway

Growth of Multinations * Economical, it is cheaper to produce a product in a country that has cheaper production and labour costs

* Economies of scale, due, in part, to rapid advances in technology, have enables multinations to gain market share

* These economies of scale have led MN to develop new markets and use the increase in accessibility to money and other resources available to grow their business

* Multinations have developed products that are popular with consumers in worldwide

Economies of scale: the ability to reduce the ‘per unit’ price of a product by making and selling more products

Example * A company wants to sell a Christian CD, in order to sell this CD they need to rent a studio, pay the musicians, buy the CD’s and rip them etc. To make the 1st CD will be expensive but as this company makes and sells more CD’s the price will go down to about $20-$30

Imports and exports
Import: goods and services purchased from an overseas country and sold in the Australian market

Export: goods and services produced in Australia and purchased by overseas countries

Top Australian Imports * Oil * Crude Oil

Top Australian Exports * Coal * Iron Ore
Top Australian Exports * Coal * Iron Ore

Trade

Trade: the exchange of goods and services

Benefits * Offers countries opportunities for economic growth by specialising in exporting goods and services that they are efficient in producing and are expert in (E.G. Korea- Cars such as Kia and Hyundai) * Provides consumers with a wide range of product service choices * Creates greater global competition which forces businesses to produce as efficiently as possible * This then reduces the cost of many consumer items and also results in an increase in consumer purchasing power

Purchasing power: An increase or decrease in how much consumers can buy with a given amount of money (bang for your buck)

Impediments * Major events such wars, terrorism, economic collapse can make trading with ‘high risk’ countries difficult and problematic * When countries implement protectionist policies such as tariffs, to look after their producers * Fluctuations in the Australian dollar can make importing goods from certain countries more expensive. Changing exchange rates sometimes present problems for exporters

Reasons for trade * To obtain goods that we cannot produce ourselves * To increase choice for consumers * To obtain goods for a cheaper price that what we would be able to produce ourselves (E.G. China, cheap products) * To make revenue and profits * To exploit comparative advantage

Australia’s trade performance * The balance of
Show More

Related Documents: Economics: Global Economy Essay examples

A Review of Robert Gilpin's "The Global Political Economy: Understanding the International Economic Order" Essay

thesis of Gallagher and Porzecanski’s study on trade relations and government policies in China and Latin America is that there is an inherent danger in the current state of affairs. In addition, many scholars believed that China’s unprecedented economic rise has brought nothing but maybe is good news to many Latin America countries. Also, this book comes to four key conclusions, namely that Latin American countries have an export profile with China that is much too narrow, that Latin American…

Words 1406 - Pages 6

International Economics and United States Essay

Creating Global Economic Imbalances and are They Sustainable? Nowadays the term globalization is not unfamiliar to everyone though you may not know how to define it. With the development of economy and technology, globalization has becoming an increasingly popular and evitable trend in every aspect of our life and bring us a lot of benefits and convenience. However, globalization is a "double-edged sword; it promotes the rapid development of global productivity and the world economic growth…

Words 2418 - Pages 10

Economic Freedom Essay

Recommendations towards Global Economic Growth Name ECN360 March 30, 2014 Professor Recommendations towards Global Economic Growth In an effort to control global economic growth and to pull out of the financial downturn, and move towards economic growth. To achieve this endeavor, my recommendations will be to improve world-wide productivity rates, policies to control unemployment, and to lift embargos and trade bans. While global economic relationships will achieve the necessary world-wide goals…

Words 561 - Pages 3

Global Economic Prospects Essay

GLOBAL ECONOMIC PROSPECTS Name ECON222-CZ1 Professor Date Global Economics Prospect are key factors the overall financial outlook of the global economy. There are multiple groups that contribute reports to the world relative to how the economy is progressing. Most reports include information regarding the GDP, GNP, inflation rates, interest rates, unemployment rates, stock/bonds market pricing, real estate market, and new construction. Many outlook groups focus their…

Words 1119 - Pages 5

Globalization and Its Impact on Marketing Strategies Essay

cooperation and performance of firms, both in developed and emerging economies. This dissertation mainly focus on two questions, first is does globalization affect firm performance? And second is the relationship between global market opportunities and performance stronger than the relationship between global market threats and performance? By answering these questions, the study indicates the extent to which firms in two different economic contexts are affected by globalization. It also shows which dimension…

Words 5002 - Pages 21

Assessment Task 1 Global Economy Research Essay

Assessment Task 1 – Global Economy Research Essay Explain how globalisation has led to variations in the standard of living and contrasts in the level of development between nations that make up the global economy. In your answer you will need to make a specific reference to the role played by trading groups, agreements or blocs. Introduction: Globalization refers to the increased integration of economies on a global scale. This can be categorized by the increase in investment, trade and communication…

Words 1411 - Pages 6

The Great Big World and China Essay

the control the various regimes had over the economic and cultural lives of the people of the Middle Kingdom. With the growing power of the Western nations, these solutions became less and less tenable. The Chinese empire found itself at the mercy of the British and saw its borders forced open and its peoples exposed to…

Words 4455 - Pages 18

Government's Role in an Interconnected Global Financial Market Essay

of global economic activity renders macro-management by single governments redundant. Their function is now to regulate markets to ensure economically efficient solutions. This essay will argue that the 2008 financial crisis has brought to the forefront of global political consideration what some economists have known for some time. This is that 1) The global financial system is inherently flawed and cyclical recessions are a product of its nature 2) The interconnectedness of the global financial…

Words 3011 - Pages 13

US Power reflected on the global political economy Essay

Assignment #2 Yohanan Zemichael PSCI 2602: A03 October 11, 2012 The framework of global political economy has evolved through a series of historical periods. For this paper, I will be comparing the overall structure and organization of the global political economy during the Bretton Woods period (1945-1975) and the Contemporary period (1975-2010). The main objective will be the United States’ projection of political power throughout these two historical periods. By…

Words 1157 - Pages 5

American Education: The Economic Goals Of Schooling

American Education Chapter 4 The Economic Goals of Schooling The Economic Goals of Schooling: Human Capitol Global Economy Preschool Human Capitol Theory Human Capitol Theory This is the idea of educating for economic growth and competition. Horace Mann proposed 2 major economic objectives, and one of those we now call human capitol. Human Capitol contends that investment in education will improve the quality of workers and, consequently, increases the wealth of the community.…

Words 449 - Pages 2