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impacts of globalisation on Australia's economy - Coggle Diagram
impacts of globalisation on Australia's economy
Trade
Negative
may be an unbalanced trade with one getting a better product than the other.
can cost a fortune to ship exports and pay for incomes.
Selling at lower price due to competition can cause loss or minimal profit
Intense competition between sellers
Positive
economies are benefitted from their exports.
New markets are entering the trade business industry by dealing with other sellers and making agreements
Consumers will have access toa bigger variety of goods from all over the world
Decreasing amount of manufacturing - more profit
Foreign Investment
Negative
One country may get more ecomic growth than the other
One might have more shares and therefore give one more power
chances of rivalry, causing a contract break
Investment is done with national owned business so may promote planned economy.
Positive
Can get access to new technologies and expertise, helping companies improve operations.
Relying on multiple markets instead of just one will reduce risk of going into debt or any losses
More opportunities for exports due to connections in different markets
Connections deepening with other countries
Technology
Negative
technology taking over our lives - no more physical contacts
Advantage to rich as Wealthier have more access to technology it than poorer
relying too much on technology when there is a risk of information leaking or frauds
Positive
helps us produce more efficient
Goods are cheaper to produce so businesses have more profit
Allows easier communication for businesses and the government
helps countries gain foreign information, they are aware of surroundings
Migration
Negative
Unemployment may rise if unrestricted number of incomers come
demands increasing in public regarding immigration
Lead to an excessive increase in population.
might lead to illegally use them by not giving enough money - wages less than what they deserve.
Positive
pension gap can be filled as more tax is coming in to government
job vacancies and skill gaps being filled
skillful people from other countries contribute towards Australia's work force
boosts working-age population
Labour
Negative
wages are smaller as more people so people have less money for spending
Intense competition between companies, leading to closures and job losses.
Disagreements between countries that may lead to rivalry
Unbalanced as some countries may send off their people to other countries and are left with unskilled people.
Positive
Opens up opportunities for government to strengthen as more money is coming from people coming from other countries
Australain are encourages to pursue higher education for better jobs
Increases demand for skilled workers
Pool of labour force increases