Globalization and Domestic Business in Australia

Running Head: GLOBAL BUSINESS 0
Global Business
REPORT
Student
7/25/2019

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Contents
Question1: .......................................................................................................................................2
About Globalization.....................................................................................................................2
Impacts of globalization on domestic business in Australia........................................................2
Positive and Negative impacts of Globalization on the domestic Business................................3
Question 2:.......................................................................................................................................5
Factors Proportion Theory...........................................................................................................5
Limitations...................................................................................................................................6
International Product Cycle theory..............................................................................................7
Limitations...................................................................................................................................8
Question 3: Trade War between USA and China............................................................................9
Bibliography..................................................................................................................................11

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Question1:
About Globalization
Globalization promotes cross-cultural communication on the international scale and removes
economic disparities by the integrating laws of nations, thus widening the scope of national and
universal trade. Along with the views of known scholars, famous author Roland Robertson
defined globalization as a development of knowledge regarding different community, economic
and cultural and thus increasing the perspective of the world as a whole (Katerina & Aneta,
2014). Moreover, according to the Swedish journalist, who is an acclaimed author of The Race
of the top: the Real Story of Globalization book, defined global development as a method of
trespassing the barriers, reducing the distances across nations and improving the relations across
boundaries (Cuterela, 2012).
Impacts of globalization on domestic business in Australia
In Australia, Global development has brought overwhelming:
Political Development Globalization includes spreading thoughts, practices and technical
expertise across nations. Its scope is not only limited to modernization but also promotes
liberalization across different nations in which the entrance of globalization in Australia, there
has been has experienced exceptional growth in its economy.
Technological Development: In Australia, advanced communication technology like electronic
media and upcoming wireless network (social media) has enabled the local companies to expand
their market across nation. Moreover, Internet has empowered domestic market of Australia to
launch their products in the world trade market and give competitive edge to other companies.

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Trade development: It has assisted Australia to evolve as one of the top producers of ilmenite,
rutile, iron, and zircon. Due to globalization, Australian manufacturers can source their goods to
a large organization. Thus it can be said that, that the application of development strategy
resulted in fruitful for Australia (Tallman & Pedersen, 2015).
Social Development: Globalization has a positive impact on the society of Australia. Due to
diversity, the citizens of Australia can now experience and relish food, culture and tradition from
the entire globe.
Positive and Negative impacts of Globalization on the domestic Business
Globalization has encouraged the development of undeveloped countries, which has resulted in
improved infrastructure, generation of output, increase production level, has created an
abundance of employment opportunities, thus contribute to the overall development of nations
(Gopinath & Parkar, 2019). Development of the market: It has contributed to the advancement
of technologies, the promotion of tourism industry on the international level, removing
intercultural barriers, and increased the standard of living (Katerina & Aneta, 2014). Moreover, it
empowers nations to focus on and manufacture goods that are available in their domestic market.
Moreover, worldwide collaboration has made it possible for the companies to avail cheap raw
material so that the companies can effectively produce the goods at a low price and generate a
great amount of profit on an annual basis. Competition With the wave of powerful of
globalization, there has been an increment in the cutthroat competition among the companies
who are striving hard to dominate the market with their innovative services, competitive prices,
and eco-friendly manufacturing policies.
Negative impact