A Report on Globalisation: Effects on Australia, India & Retail Sector

This report provides an in-depth analysis of globalisation and its effects on different countries and sectors, specifically focusing on Australia and India, with the retail sector as a case study. It examines both the positive and negative impacts of globalisation, including the growth of global markets, cross-cultural management, resource allocation, and increased competition. The report also discusses how globalisation affects trade relationships between countries, identifying areas where trade has increased and decreased. Furthermore, it highlights factors affecting trade relationships and concludes that globalisation has a significant impact on both developed and developing countries, influencing their economies, cultures, and business operations. Desklib offers a variety of solved assignments and past papers to aid students in their academic pursuits.

Running head: ANALYSIS OF GLOBALISATION
ANALYSIS OF GLOBALISATION
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Executive Summary
This report is based on the analysis of globalisation and its effects on different countries and
sectors. The two countries which have been considered for the analysis are Australia and
India. The industrial sector which has been considered in the report is retail. The analysis has
been able to depict that globalisation is able to affect the countries and sectors in both
positive and negative manner. The trade based effects of globalisation have also been
analysed in the report based on the two countries. The report has been concluded by stating
that globalisation has an immense impact on the developed and developing countries.

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Table of Contents
Introduction....................................................................................................................3
Effects of globalisation on different countries...............................................................4
Positive effects of globalisation.................................................................................5
Negative effects of globalisation..............................................................................11
Trade based effects of globalisation.............................................................................13
Areas where trade has increased due to globalisation..............................................14
Areas where trade has decreased due to globalisation.............................................16
Factors affecting trade relationship based on countries and industries....................17
Conclusion....................................................................................................................17
References....................................................................................................................19

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Introduction
Globalisation is considered to be a process which is based on the integration and
interaction between the companies, people and the governments all over the world. The
growth of globalisation has mainly taken place with the help of advances in communication
based technology and transportation. Increase in global interactions is mainly based on the
ways by which international trade, culture and ideas have shown immense growth. For
example, the world’s thirteenth largest economy Australia has shown a growth of 2% in
import and export based operations. Globalisation is thereby considered to be an economic
process which is based on the integration and interaction of the cultural and social aspects in
an effective manner (Ahn, Minshall and Mortara 2015).
Diplomacy and conflicts are important negative aspects of globalisation. The process
of globalisation thereby involves various aspects including, services, goods, economic
resources based on capital and many more. The four basic aspects of globalisation were
thereby identified in an effective manner with the help of International Monetary Fund which
include, investment and capital movements, transactions and trade, dissemination of the
knowledge and the movement and migration of people (Auer, Borio and Filardo 2017). The
work organizations and businesses are thereby affected in a huge manner by the globalisation
processes. The major challenges which have been created due to globalisation in different
countries include, air pollution, global warming, cross-boundary water, over-fishing and
many more (Altomonte, Zaurino and Colantone 2015).
The report will be mainly based on the ways by which globalisation is able to affect
different developed and developing countries as well. The positive and the negative cases
related to globalisation will be analysed in the report with the help of different facts. The
changes which have taken place in trade based relationships between different countries will
be studied in the report as well. The trade based transactions which have taken place in

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between different countries like, Australia, Japan, China, US, UK, Germany, Indonesia,
Korea will be a part of this analysis related to globalisation (Bayne 2017).
Effects of globalisation on different countries
Globalisation mainly aims at providing a competitive position to the organizations
which operate in different countries all over the world. The major areas which have been
affected in a huge manner by globalisation based activities include, the technological
advancements, environmental developments, socioeconomic developments and many more.
For example, the entry of global organizations like, Aldi in the retail sector of Australia has
brought in new technologies. The companies of different countries which operate in a global
environment are thereby able to gain a lot from greater number of products, consumers and
services as well. The major approach to competition is mainly gained with the help of proper
globalisation based activities (Belyi 2016).
The process of diversification of the resources is also facilitated in an effective
manner by the globalisation in different areas of the world. The major components that form
an important part of globalisation include, industrialization, GDP of gross domestic product,
human development index. However, the globalisation based activities have different effects
on the developed and the developing countries all over the world. The levels of recognition
that are brought with the help of globalisation are effective at the national, international and
the sub-national levels as well (Bende-Nabende 2017).
The capitalist social and economic relations of different nations are also affected by
globalisation based activities that have taken place. The positive and negative effects of
globalisation on different countries will be discussed further. The analysis of globalisation
will be analysed with the help of the analysis of two countries Australia and India and sector

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that will be considered in the report is retail industry of the countries (Bryant and Javalgi
2016).
Figure 1 – Source - (Bryant and Javalgi 2016)
Positive effects of globalisation
The process of management of business organizations has become easier due to
various globalisation related activities. The different positive effects of globalisation are as
follows,
Global markets – The emerging markets which exist in various developed
countries are mainly based on the privatisation related steps that have been
taken by the global companies. The companies are thereby aiming at
increasing their revenues with the help of expansion to the other countries or
areas. The increase that has been experienced in the transactions that take
place across the border is an important factor (Butt 2017). Globalisation has
also played an important role in increasing the levels of competitiveness
among the organizations which operate within an industry. For example, the

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competition within domestic and international companies have also increased
due to globalisation. The entry of online multinational companies like Amazon
has been able to affect the sales of retail organizations which are already
operating. The multinational corporations are also a result of globalisation
which has increased in the modern business environment. The multinational
corporations have a central role in globalisation. The retail sector of Australia
has been affected by globalisation and the organizations are thereby
experiencing high levels of competition from various other global
organizations like, Tesco (Charron 2016).
Figure 2 – Source - (Charron 2016)

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Cross-cultural management – The levels of interaction between different
types of people have increased with the help of globalisation. The highly
popular cultural force which has been created with the help of globalisation
has also played an important role in developing unique abilities of global
companies. For example, in case of the Australian retail based sector, the
different global companies have changed the choice and preferences of the
consumers. The consumer culture that has been developed in different
developed countries have affected the revenues of the global organizations
(Coyle 2016). The technological changes, changes that have taken place in
mass media and the marketing campaigns are all based on the needs and
demands of the global customers. The transformation has also taken place in
the ideas and attitudes of consumers all over the world have also been affected
by globalisation. Customers play a major role in the retail sector and the
companies in this sector are ready to take the necessary steps in order to fulfil
their needs and demands (Hopper, Lassou and Soobaroyen 2017).

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Figure 3 – Source - (Hopper, Lassou and Soobaroyen 2017)
Resource imperative – The resource based needs of developed countries are
normally fulfilled with the help of low cost labour and raw materials that are
available in the developing nations. The economies of the developed countries
are highly dependent on the developing nations all over the world. The
organizations of the Australian retail sector are highly dependent on the
developing nations like India for the raw materials and cheap labour
(Kakabadse, Kouzmin and Kakabadse 2017).
Competition – The levels of competition that existed among the organizations
in different industries have increased due to the globalisation. The companies
have started implementing the concept of customer is the king. The production
processes are thereby based on the improvement of the quality of services and

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products. The domestic organizations now have to face tough competition
from the foreign companies. The Australian retail industry has also faced huge
levels of competition from the various global organizations which have started
their operations in the country (Lambregts, Beerepoot and Kleibert 2016). The
global organizations which operate in the country mainly include, Aldi, Marks
& Spencer. The online retail organizations like Alibaba and Amazon have also
played a major role in reducing the revenues of domestic organizations.
Culture – Globalization has been able to impact the culture of an organization
in many ways. The people of all different countries have thereby started
following a similar culture which has affected their choices and demands as
well. The societies all over the world have become larger than the previous
business environment. The culture of a particular country is affected in every
manner by the others in the global business area. The culture that has been
adopted by the Australian retail sector has been affected and has been able to
cause many changes in the ways by which the demands and needs of the
customers are fulfilled (Maskus 2014). The online shopping culture has
increased in the Australian retail sector after the entry of Amazon. This has led
to the organizations like Woolworths to start their e-commerce based
operations.

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Figure 4 – Source - (Lambregts, Beerepoot and Kleibert 2016)
Legal effects – The increase that has been seen in media coverage has been
helpful in reducing the cases related to violation of the human rights. The
growth of global economy has been facilitated with the help of globalisation.
The promotion of openness has played an important role with the exchange
with prosperity and greater democracy (McCann and Acs 2015).
Globalisation has some major positive impacts on the retail sector of Australia. The
levels of competition in a developed country like Australia were increased due to the entry of
many multinational corporations. The two major competing retail organizations in Australia
mainly include Wesfarmers and Woolworths. The changes that take place in the currency
levels have affected the prices of services and products. For example, the value of Australian
Dollars had weakened in the year 2014 and further led to the losses of the retail
organizations. Globalisation has significant effects on the developing countries like India.

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The globalisation related activities have been able to affect the Indian retail industry in a
beneficial manner (Naghavi and Prarolo 2018).
The increase of globalisation has increased the speed of the progress that has been
made in field of technology. The retail sector of the country has also been affected in a
positive manner by the increase of globalisation. The levels of unemployment in the country
had been reduced and increased levels of competition had further provided more power to the
consumers. The consumers are able to bargain more for the services and products that are
provided to them by the domestic and the multinational corporations as well (Pazienza 2015).
The foreign direct investments have also increased in the current business environment in
India and this has led to the increase in huge employment based opportunities in the country.
The developed and the developing countries have been able to benefit from the ways by
which globalisation has created a marketplace for services and products that are offered by
different organizations (Reese, Rosenmann and McGarty 2015).