The Global Economy and Its Profound Impact on Australian Politics

This essay analyzes the intricate relationship between the global economy and Australian domestic politics. It examines how global economic factors, particularly international trade and events like the COVID-19 pandemic, influence political decisions and policy-making in Australia. The essay highlights how changes in the global demand and supply of goods and services impact Australia's economy, leading to shifts in domestic regulations and responses from the government. The analysis includes the effects of the pandemic on Australia's economy, the government's responses, and comparisons with other countries. It also explores how Australia leveraged the crisis to its advantage, particularly in sectors like tourism. The essay concludes by emphasizing the importance of the global economy on Australian politics, highlighting the country's ability to manage the crisis and safeguard its people through proactive political actions.

Global Politics and
Development

Table of Content
HOW DOES THE GLOBAL ECONOMY IMPACT ON DOMESTIC POLITICS IN
AUSTRALIA?.................................................................................................................................3
REFERENCES................................................................................................................................7

HOW DOES THE GLOBAL ECONOMY IMPACT ON DOMESTIC
POLITICS IN AUSTRALIA?
Global politics is a term which determines the interrelationship between different
political factors and components which affect all the major political decisions of different
countries in the world. Global politics and the world economy are the two consecutive factors
which and operates together affecting each other unique manner and ways. This is an essay
report which will be focusing upon answering a very simple question and looking over certain
aspects of global economy and its impact upon politics that is being conducted and taking place
in Australia relating to certain decisions and practices (He, (2019)).
Politics is denoted as an activity associated with the actions taken by the government of a
country or a respective region. The practices that are conducted and the policies that are
developed by the government of region aiming towards improving the status and power of the
country or the state or a particular region are known as political actions and influence of politics.
Australia is open economy exposed to trade nationally and internationally. This characteristic of
Australia of being exposed to International and national trade bring changes in present
economics and political processes of the region.
If any changes taking place in other countries in respect to demand and supply of goods
or services will be significantly impacting or imposing implications over economy of Australia
as well as brings changes in political processes as well as phenomena’s. In simple words for
example is in a particular global economy demand for Australian exports increases and if the
country is not able to match those demand through its supply it will automatically result in in
increasing the price of those exports for the consumers and country will be earning higher profits
as their products or services are demanded in huge amount through global economies (Alley,
(2018)).
Australia is a country situated in Oceania and bordered with the Indian Ocean and the
southern Pacific Ocean. The country is comprises of mainland Australia and the island of
Tasmania along with some small islands in the Indian and Pacific oceans. The country has a
mixed economic system in which the economy of Australia includes variety of private freedom
which is ultimately combined with centralised economic planning and government regulations.
The term domestic politics is defined as those political activities, and situations that takes
and exist within one particular country and in respect of the present essay the politics of

Australia and the impact by global economic environment over it will be elaborated. The world
economy or in different term global economy is a term which defines all the different economist
which exist in the world relating to different countries or states or regions. The world economy is
a wider term which is affected due to number of reasons and factors such as at present for
example coronavirus. The coronavirus have created a deadly disease named covid-19 which have
affected millions and even billions of people around the world. Several countries and economy in
the world were shutdown and were completely under lock down due to the severe impacts
imposed by the virus over the human beings and their lives. The coronavirus have not only
impacted Australia but also affected number of economics in the world as well as the trade
taking place amongst them (Skogstad & Schmidt, (2017)).
Global economies which were under lock down due to the outbreak of covid-19 there
were number of rules and regulations which were employed by different governments and
domestic parties in order to safeguard the lives of their people. The first and foremost impacted
which was seen due to coronavirus over global economy was of closing the exports and imports
from International borders and waters. This first economic factor of the world economy resulted
in changing the domestic rules and regulations of Australia. The country and the government
took a political decision for a temporary basis as per which Australia also imposed restrictions
over exports and imports from different corners of the world with the motive of fighting the virus
and stopping it from spreading and breaking the chain. The domestic rules and regulations of
Australia changed application of restrictions over imports and exports to world. Australian dollar
reduced its price which resulted in huge losses and burdens to be incorporated by the domestic
people or population of Australia who were earning their livelihoods through these exports and
imports (Mawdsley, (2017)).
In order to manage the economy of Australia the government changed the domestic rules
and implemented new policies on a temporary basis for businesses and for the people to survive
along with keeping the economy of the country running. The Government of Australia took
aggressive response strategy for dealing with the pandemic which include stringent lockdown
and social distancing measures along with wide spread testing and carefully coordinating contact
tracing. This aggressive and emergent response of the political Australia enable the country to
manage the public health crisis much better then any other country. The economic impact which
was seen Australia over Italy, the United States of America and United Kingdom made the

domestic political party to take up emergent and aggressive actions which resulted in the spread
of virus in the country and safeguarding of the people that is the population of Australia. As per
the results he was identified that by the end March 2021 only few Australians contacted with
covid-19 and the rate of the country due to the virus was also reduced. In comparison to other
economy as such as the United States and Brazil, Australia had only 900 death in 2021 till March
on the other hand the US had the number of around 540,000 people and the Brazil had the that
numbers to reach to 300,000 (Blondeel & Van de Graaf, (2018)).
When other countries were struggling economically and financially due to the virus and
its outbreak Australia and its government were working for bringing back the economy of the
country and normalising the impacts of covid-19. The global economy and specifically the
tourism sector of the world was the highly affected due to the coronavirus. In certain areas of the
world not only the Tourism and the hospitality business was highly affected but also being shut
down and completely evaporating from the economy. This economic factor actually generated an
opportunity for Australia to grab and to reboot its hospitality sector and travel and tourism
industry.
The domestic government of Australia made several amendments and imposed temporary
policies for providing support to small as well as large hospitality business providers and
conducted relief programs for those suffering due to it. The politics of the country changed when
the people and the Government of Australia were working together for or rebooting its economy
as well as different business sectors in which hospitality industry was highly focus upon. The
domestic government of Australia conducted several campaigns and schemes for promoting their
hospitality businesses and industry in the world with the major focus of attracting tourists by
highlighting over the safety and safeguards that are being implemented for safety and health
concerns for all the people living in Australia and the tourists who will be visiting the country for
exploring its scenic beauty (Hiscox, (2020)).
Australia is known as a liberal democracy and thus, known as the most successful
developed state in the world in relation to slowing the spread of coronavirus and a disease called
COVID-19 which initiated in 2019. The reason behind the same has involvement of number of
factors with the combination of a stable political system environment which was developed by
the Australian government along with National wealth and geographic isolation. It is also
identified that the USA and the United Kingdom both economy is share some of the

characteristics and attributes which were the part of Australian domestic politics but both the
large economy was were unsuccessful due to lack of physical dispensing measures. The social
and economic impacts of the pandemic still have sever influence over different economy is of the
world but Australian economy have overcome the issue managed it in the most positive manner.
Hence, it can be critically represented that the world economy and their influence over
Australia resulted in a positive manner for the region as the domestic political parties and the
politics for bringing the best to for the people of the country and safeguarding them against any
critical outbreak. Political party of Australia aggressive actions by looking over other countries
and their economies and the suffering they are being facing till now due to it. Thus, the emergent
actions and very critical approach of domestic politics that are taken by the government of the
Australia resulted in favour of the country as well as for its people by keeping them safe and
healthy and changing the country into a safe zone for people to visit even when the virus is still
being spreading But the extreme safeguarding measures and the rules implemented by political
party the country is flourishing and the supported overall (Sá & Sabzalieva, (2018)).

REFERENCES
Books and Journals
Alley, R. (2018). The domestic politics of international relations: cases from Australia, New
Zealand and Oceania. Routledge.
Blondeel, M., & Van de Graaf, T. (2018). Toward a global coal mining moratorium? A
comparative analysis of coal mining policies in the USA, China, India and
Australia. Climatic Change, 150(1), 89-101.
He, B. (2019). The domestic politics of the Belt and Road Initiative and its implications. Journal
of Contemporary China, 28(116), 180-195.
Hiscox, M. J. (2020). International trade and political conflict. Princeton University Press.
Mawdsley, E. (2017). National interests and the paradox of foreign aid under austerity:
Conservative governments and the domestic politics of international development since
2010. The Geographical Journal, 183(3), 223-232.
Sá, C. M., & Sabzalieva, E. (2018). The politics of the great brain race: Public policy and
international student recruitment in Australia, Canada, England and the USA. Higher
Education, 75(2), 231-253.
Skogstad, G., & Schmidt, V. A. (2017). 1 Introduction: Policy Paradigms, Transnationalism, and
Domestic Politics. In Policy paradigms, transnationalism, and domestic politics (pp. 1-
35). University of Toronto Press.