Globalization and Its Impact On Various Aspect Of Australia Online Tutoring

Executive Summary

This essay is based on the concept of globalization, which has produced substantial global economic development and enhanced human rights while leading to rising inequality, fraudulent practices and environmental degradation. World has been in a difficult situation to perform its obligations while failing to prioritize its operations and keeping a compromise between people’s needs and those of its corporate personals. All the world have experienced various implications of globalization but here the focus of this essay revolve around Australia. Australia is a developed country with hot and dry environmental conditions, faced multiple challenges due to globalization. This essay highlights that the impact of globalization in Australia is in terms of economic development, poverty alleviation and social protection. Globalization contributed in environmental degradation due to industrial development and human harmful activities. However, businesses in Australia also face various risks and uncertainties due to current global business environment.

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Introduction

Globalization’s term is being more common across the globe as it allows free movement to interact with citizens on cultural, environmental, financial, technical, political, and educational as business concerns. Globalization has affected several people’s lives in contemporary society, which began in the western societies in 1492, and then spread throughout the world (O’rourke & Williamson, 2002). Globalization can be regarded as the expanding global economic and financial integration of the world economy. Indicators that allow globalization involve technological transition, which is the regulated awareness of the development of products and services, and reduced security of the global economy.

Globalization is not anything new. After its establishment as a colony Australia has been active in commerce, tourism, capital transactions, technological transitions and labor migration. What has increased, particularly since 1980, is the scale, nature and effect of those transfers. This transition has been supported by a variety of factors. They involve developing international markets, becoming internationally connected to foreign exchange and capital markets. They work 24 hours a day in real time, with transactions wherever appropriate in the world. Since 1983, financial reform and the dollar circulating in Australia have exacerbated the effect of globalization on the Australian economy. The effect of globalization, too, has altered Australia’s trading system. The production and service sectors have expanded considerably, with minimal development in the rural market. This represents a mix of global market changes and systemic domestic reforms.

Globalization is the growing economic interconnectedness between nations embodied in that real developments through regions in commerce, innovation, technology, finance, and labor, with the opportunity to travel and the possible migration through nations of these five elements. After its establishment as a colony, Australia’s participation in commerce, tourism, capital transfers, technological innovation and labor movement has influenced and modified Australia’s economic system, with substantial growth. Generations of Australian people have seen and encountered the numerous shifts that have taken place in Australian culture. Process of globalization is one aspect of this movement that keeps transforming Australia. As shown in Fig 1, Australia has progressed across several years and this continues to be done by globalization. The issue under consideration is indeed globalization, and if it has a substantial effect on Australia’s country. The term refer as the increasing economic interconnectedness between countries is Globalization. It is the transaction, expenditure, technology, finance, and progressive movement.

Impact of Globalization on various aspects of Australia

As of other world, Australia is also prone to multiple challenges generated because of emergences of globalization.

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Impact of globalization on Australia in terms of economic development, poverty alleviation and social protection

That international economic globalization and the advent of international trade and even regional interconnected transport and consumption networks increase the need for legislation that stretches above and beyond conventional legislative parameters (Johnson & Turner, 2010). Globalization has increased the international integration of financial markets, particularly improvements in communication and information technology, and adopted stronger linkages among economies (Dwyer & Čavlek, 2019) Consequently, financial crises tend to be more infectious and extend their impacts among regions of the world more quickly than before, when boundaries were less permeable (Johnson & Turner, 2010). Globalization has significant implications for global and financial movement regulation. Aside from investment, globalization has developed other interconnectedness, most of which interfere with commerce. Globalization involves a shift to wider and emerging market that have gone further than conventional jurisdiction of the country

The globalization’s impact on the economy on Australia is moderate. Australia’s natural resource products distribute to a demand to around 6.5 billion citizens. Raw materials, including coal, uranium, iron, beef, wool, and rice, account for about 50% of export earnings. It seems to be that exports are principally minerals as well as other natural resources, and the share of exports from Australia has increased 32 per cent in past years. Moreover, it is usually the simplest to transfer anywhere than it has ever been, and the Australian economy has strengthened because of this.

Moreover, the consequences of international economic integration on Australia’s poverty is more complex than explanations would imply of a “race to the edge.” The liberalization of foreign trade and investment does not appear to lead to certain reductions in average earnings or state benefits or to significant increases in unemployment in developed nations, except in certain sectors most adversely effected by global competition (Scutella 2001).

Additionally, together under slogan of “strengthening national competitive advantage,” state and corporate policies that have expanded inequality and poverty in Australia have sometimes been pursued. One illustration is what the harmful cutbacks of large businesses and government programs over the past several years might even be considered (Esping-Andersen, 1999). There is concern that such measures have in turn strengthened national productivity in the long run. And the reason that they were often viewed as the eventual consequence of unchecked economic powers is a big trigger of “globalization” discontent in places like Australia (Davidson, 2003). There is a strong connection between national rates of social investment, environmental sustainability and poverty alleviation.

Australia has some of the lowest social expenditure rates in the OECD, largely owing to the weak and strict allocation of the social security benefits. It indicates that the social insurance program is achieving better than in many other OECD nations to growing welfare per dollar invested. Yet in most western European nations, not much is expended on reducing poverty to something approaching standards (Davidson, 2003).

Furthermore, Australian framework of social security is distinct from that of most other nations. Many welfare programs are flat-rate entitlements supported by general budget income, so social security contributions are not specific. Many incentives are money-tested or investment-tested, meaning that welfare benefits decline with additional wealth. The social effects of globalization are strongly optimistic for Australia. Australia is so far from the rest of the world’s landmasses but globalization has managed to bring Australians pretty close to the rest of the world’s population. Multiculturalism is a big influence that ensures Australia gets to absorb culture, music and traditions from across the globe. It has rendered everyone more historically aware, and more creative. Nevertheless, a detrimental consequence of this is that many ideologies may be perceived as prominent in areas of Australian society along with art and entertainment. After the Second World War, American impact over Australian culture has grown. It adversely impacts the citizens of Australia, because it implies the Western depictions dominate the cultural image. Globalization has, however, enabled improved mobility between nations. One out of six individuals who work in medicine are raised abroad, taking their own range of expertise but also difficulties with them. The communication gap may prove problematic for patients, and patients can decline to be shown to international doctors in certain situations. In fact, the socioeconomic effect of globalization on Australia is overwhelmingly optimistic

Impact of environmental degradation on Australia as a result of industrial development and other human-inflicted damages

The globalization’s environmental impact on Australia is significantly negative. The environmental effect of the emissions is overwhelmingly negative. A growing in industrial output and development often increases the pollutants that are released in the environment. Australia’s greenhouse emissions are among the worlds’ highest and this is mainly attributed to manufacturing and assembly lines. Primary sectors, although, do have adverse environmental effects by agriculture and manufacturing. The practices which damage the environment or harm the atmosphere by such activities. In fact, the usage of rivers has grown as a consequence of global shipping goods and movement and touring from globalization. The additional commutation leads to the toxins of the water; polluting global water bodies. In fact, globalization’s effect on the Australian environment is overwhelmingly negative.

Response of businesses in Australia to growing risks and uncertainties in the current global business environment while remaining socially and ethically responsible

Business is a major global, financial, and social entity, undoubtedly. Large and small businesses recruit much of the population and both their opinions and perceptions towards the economy and culture are important and searched after by policy. Business never talks in one hand because there are diverse and conflicting corporate concerns (Hughes and O’Neill, 2008). International trade is an essential topic for development academics and practitioners which presents great challenges. During the last half-century, the overall volume of international trade has risen significantly (Australia, 1969). Globalization has complicated the management of business activities and established a regulatory deficit (Johnson & Turner, 2010).

Uncertainty is commonly agreed as a possible constraint on progress. There is uncertainty as customers, business owners and legislators are unable to foresee shifts in any variety of factors that influence their decision-making, such as employment, infrastructure, and the environment. Business executives are addressing a number of nuanced and interrelated problems at the start of a new decade. At 72%, economic instability was by far the main challenge of SMEs and, as we have shown, 41% anticipate global economic expansion rates to fall in 2020.

Australian Climate Change Roundtable 2006 reported that, “Climate change is a big business concern. Uncertainty over the direction of climate policies raises investment-related risks.’ In Australia, policy volatility constitutes a substantial business risk with wider uncertainty about potential climate change and regulation than any other OECD region. The biggest single risk, maybe, is legislative instability. Ironically, as the problem gains momentum, the regulatory climate grows more unpredictable although there is inevitability for stronger control. Change process legislation would also affect Australia progressively (Riguet, 2006).

Moreover, climate change poses a significant, but underutilized, challenge to the Australian business sector. The prime risk factor is the need to react internationally and nationally. Market threats involve environmental damages, legislation, competitiveness, industry shifts, innovation and implications on energy prices, electricity resources, lawsuits and corporate governance (Peel, Foerster, McDonnell & Osofsky, 2019). No any sector and business is saved from these risks. Marketing, finance, banking, forestry, renewable services, travel, land, and consumers of electricity are industries that are expected to be the most vulnerable. Such uncertainties derive from the direct effects of climate change itself and the actions of states, shareholders, lenders, rivals, suppliers, buyers, the press and the media.

A broad variety of industry practices would eventually be impacted by potential climate change, including higher power costs, tradable pollution allowances and carbon taxes, infrastructure changes, compulsory pollution and efficiency requirements, and emission mitigation goals. In capital-intensive sectors, where restructuring will take decades to upgrade facilities, and cost tens of billions of dollars, this absence of long-term administrative stability poses concerns of systemic danger to innovation and abandoned properties. This complexity will intensify in coming years, as the discussion over how to solve the issue intensifies and emissions cuts remain unclear after several meetings of Kyoto Protocol (Riguet, 2006).

Being a hot, dry, environmentally sensitive region, Australia is more prone to the physical threat of climate change than most developed countries, impacting all investors, from corporate to personal, who face considerable danger in assessing the protection of their investments (Tonmoy, Cooke, Armstrong & Rissik, 2020). It can be demonstrated more easily in farming, with the major effects of the current drought. Australia also saw latest water movement-through impacts of agricultural destruction from tropical cyclone Larry on the agriculture industry. Each big Australian metropolitan community now experiences water stress and climate change. This is expected to trigger heightened demand for an extremely limited resource and severe water usage restrictions (Mallawaarachchi, Auricht, Loch, Adamson & Quiggin, 2020). Therefore, the tourism industry is expected to experience significant impacts when climate change threatens big attractions such as the Great Barrier Reef, Kakadu and the highlands of north-east and south-east Australia (Riguet, 2006).

Climate change has arisen as a market concern, there are prospects for transitioning to a carbon-constrained global economy (Nyambuu & Semmler, 2020). Global businesses are gradually accepting that taking concrete action on climate change provides business benefits such as developing global markets, shaping organizations, acquiring regulatory insight, and competitive advantage. The unprecedented boom of multibillion dollar investments in carbon trade and renewable energy markets, for instance. These two businesses have a total annual global demand of more than AUS$100 billion (Riguet, 2006).

The most recent scenario was of this summer, when Australia is facing one of the worst bushfire outbreaks that most have ever experienced in this region. Given the magnitude of this catastrophe, and the rising severity and frequency of severe weather conditions, Australia is entering a time of increasing instability and uncertainty. The massive destruction has put the infrastructure’s durability to the forefront. As a consequence, Australia is at a critical stage in its past, with significant consequences on how it prepares on current and potential development. Annual rainfall has decreased by 11 per cent in certain areas of Australia since the 1990s and the air temperature throughout Australia is predicted to increase by 0.6 degree to 1.5 degree centigrade by 2030. Under these situations, most of the businesses face several challenges.

Conclusion

It is not globalization on its own, but how we react to it will impacts many of Australia’s social , economic and environmental parameters , i.e. economic development, poverty alleviation, social protection , environmental degradation, rising risks and long-term uncertainty in the existing global business environment. Australia’s position in expanding the benefits from globalization, through numerous past studies, has been clearly evident. Apparently, the very first step towards guaranteeing a country and its people acquire from globalization is through compelling legal and economic organizations, enhanced market effectiveness and improved facilities, education and health delivery. A major cause of the comparatively high rates of deprivation in Australia is structural failure of certain structures that help bear the risks resulting from economic transparency. Those include insufficient social security benefits, a poorly developed program of meaningful job support for young persons, and a revenue base that is possibly unable to fund the requisite long-term social spending. Financial transparency and social justice should be mixed, improved while people being left behind. Moreover, Australia also greatly affected by environmental degradation due to multiple industrial development and human careless and harmful activities. Human carelessness causes climate change and damages the environment and ecosystem. In addition, there are several risk factors and uncertainties that negatively impact the business world especially the businesses operated in Australia. Climate change is one such business risk that bring world economies to a level of high uncertainty and Australia has also no exception in this regard.

References

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Hughes, O.E. and O’Neill, D., 2008. Business, government and globalization. Macmillan International Higher Education.

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O’rourke, K.H. and Williamson, J.G., 2002. When did globalisation begin?. European Review of Economic History, 6(1), pp.23-50.

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Riguet, T., 2006. Climate change. Risks and opportunities for Australian business.

Scutella, R., 2001. Jobless households in Australia. Australian Social Monitor, 4(3), p.69.

Tonmoy, F.N., Cooke, S.M., Armstrong, F. and Rissik, D., 2020. From science to policy: Development of a climate change adaptation plan for the health and wellbeing sector in Queensland, Australia. Environmental Science & Policy, 108, pp.1-13.