What are the advantages and disadvantages that Globalization brings to Australia?
Advantages Australia can benefit from: 1. increased availability of variety of non domestic goods. Anything that can not be produced in Australia would not be available without globalization. 2. Businesses can export cheap labor to save money. They can then pass the savings on to their consumers resulting in lower prices. 3. Globalization also brings in capital (investment money) from outside sources. This can help the economy grow. Disadvantages: 1. Because businesses will export cheap labor, the country will likely see a reduction in low skill job availability. This can have negative affects on unemployment. 2. Because some domestically (in country) produced goods may be more valuable to other countries, they may raise in price in their native country (Australia). 3. Because domestic investors can invest outside the country, it may be more profitable for them to do so lowering investment in Australia’s economy.
