CONTEMPORY MANAGEMENT Essay -- essays research papers

CONTEMPORY MANAGEMENT Examine the implications of globalization for Australian business and discuss whether Australia should become more integrated into the global economy Australia is an excellent object of study of globalization and its implications for business as its economic structure is at an unusual 'mid-way' point. New market opportunities, competitive threats and opportunities alike have been the key drivers of globalization since the 1980's. This essay analyzes a variety of topics to determine whether Australia should become more integrated into the global economy. Defining globalization and its major players is crucial to the argument. Petrella's definition of the main characteristics of contemporary globalization will be used as a framework to analyze and define the main changes that are a result of globalization. Through this process, the second part of the paper is devoted to analyzing the advantages and disadvantages for Australian business in becoming more integrated into the global economy. A conclusion can then be reached to confirm that the viability of Australia's integration into the global economy is not only advantageous but also a necessary progression. Globalization is defined by various academics depending on the viewpoint they take. Keenoy and Kelly however most broadly define globalization as . . . The expansion of international trade and production to the extent that most forms of economic activity are not only interlinked but also interdependent Globalization can also be defined through its characteristics. Petrella describes globalization as comprising of the following concepts: „h Internationalization of financial markets „h Internationalization of corporate strategies, in particular their commitment to competition as a source of wealth creation. „h Diffusion of technology and related R&D and knowledge worldwide „h Transformation of consumption patterns into cultured products with worldwide consumer markets „h Internationalization of the regulatory capabilities of national societies into a global political economic system. „h Diminished role of national governments in designing the rules for global governance The internationalization of financial markets is a direct result of globalization and vice versa. Four clear forces have contributed to this: market saturation, disintermediation, deregulation of financial mar... ... of contemporary globalization have been discussed. The internationalization of finances and trade into a global political system puts Australian firms in the vulnerable position of becoming exposed to environmental risks of the world. These factors also open infinite opportunities to Australian businesses. Trading on a global basis allows larger access to consumers, hence profits, and the internationalization of finances can be considered an economic strength, rather than a weakness. The internationalization of corporate strategies requires a change in the thinking of managers and their planning. Through the diffusion of technology and transformation of consumption patterns the commitment to wealth creation can be endless. The major players in the global market place have changed with shifts in power towards large organizations. There will be losers in a more competitive environment but the benefits for Australian firms are endless. Globalization of Australia as it becomes more integrated into the economy is already in progress, and has been for a long time. If Australian firms are to keep up they will have to become more integrated, this is not a choice, but rather a necessity.