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

Authors Avatar

“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. In some cases this may mean tailoring products for national markets, in others paying exceptionally low rates for labour because it is the norm. In the developed world executives and government officials often claim that globalisation is responsible for the dismantling of social institutions, layoffs or company closures.

Join now!

The Australian economy was opened to the world from the early 1980’s with the reduction in tariffs and the deregulation of the financial sector. Modern methods of travel and communication have brought the countries of the world closer together and businesses now fine themselves operating in an increasingly global marketplace.

Thanks to the opening up of the Australian economy by governments from Prime Minister Hawke to Prime Minister Howard, Australia is well placed to take advantage of the impact of technology, global free markets and regulatory changes. But while technology coupled with our high levels of education, intellectual capital and ...

This is a preview of the whole essay