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"Australia is a limited market. Businesses in such markets seek global remedies."

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Introduction

"Australia is a limited market. Businesses in such markets seek global remedies." In a speech made by the Hon. Alexander Downer MP, Minister for Foreign Affairs, to the Asia Society and AUSTCHAM in Hong Kong, 15 October 1997, he stated "There can be no question that globalisation offers huge opportunities for internationally competitive economies. But it also brings in its wake challenges for political and economic management. No economy stands - or prospers - alone. Globalisation brings with it increased competitive pressures in markets, and makes globally-based trade rules and disciplines even more important." In essence, he is saying that globalisation can help to open up new markets for countries that embrace it. As Australia is a limited market, its businesses seek global remedies, or globalisation, to help them expand outside Australia. Globalisation is one of the 'buzz words' of the 1990's: we live in a 'global' village, we consume 'global' brands, corporations have to be competitive in a 'global' market place and governments have to be responsive to the needs of the 'global' economy. Companies are expected to achieve overall worldwide objectives by adapting to local conditions in several countries. ...read more.

Middle

No industry seems immune. Yet, each time there is a significant addition to critical mass, wherever it occurs, we are being marginalised unless we can maintain relativity. Of course, instinctively, the notion that more is better for competition strikes an interested chord with consumers and voters. In 1975, when governments provided industry protection, and before the latest advances in technology, perhaps the argument had substance. But not today. Today, in some form, competition is applying pressure to virtually all Australian companies. Instead of being able to take advantage of economies of scale and an increased market share, margins for newly merged entities continue to be squeezed. Companies should always keep in mind that customers have choices these days, and the Internet makes choices very easy. Even global giants now accept their control over prices is illusory in the longer term and may expose them to new competitors. The only way they can maintain profitability is by ruthlessly cutting costs. Merging provides this opportunity. So it is, that in an increasingly borderless world, while speed is more important than size, relative size is critically important. It is vital for a country like Australia, with a relatively small domestic market, to achieve a critical mass that will enable it to compete on a world stage. ...read more.

Conclusion

They should conduct research into the level of economic activity, buying patterns, income levels, stability of government and government planning etc. By doing this it will enable them to market their business more competitively. By globalising their markets Australian businesses also have to be aware of labour requirements overseas. It is well known that many businesses expand overseas to exploit the cheap working labour that is prominent in developing countries, however this may place a negative image upon the business in Australia and management needs to be aware of this if they are to succeed globally. It is clear that the term globalisation serves as a meaningful guide to the world we experience. As John Howard stated "the difficult fact that has to be faced is that the correct response to globalisation is more liberalisation, not less. More change, not less. More willingness to embrace new ideas, not less." In ending Australia does hold a limited market for it's businesses, so therefore they seek to embrace what the overseas market has to offer them. Global remedies can help to catapult not only Australia but also its businesses into the world market; therefore globalisation is seen as a positive choice for businesses today. ...read more.

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