Analyse the impact of globalisation on an economy other than Australia, including an evaluation of the strategies used to promote economic growth and development in this economy.
Globalisation is the process of international integration through the exchange of views, products and aspects of culture between nations. It has accelerated rapidly over the past 50 years due to advancements in technology and communication, changes in policies of international governments and increased mobility of labour. The result has been the establishment of a global economy where goods, services, skilled labour and foreign capital are moving faster internationally than ever before. The impacts globalisation can have on an economy have been seen in China over the past 40 years.
Globalisation occurs when domestic economies move from a protectionist economic framework, to an economy that greater embraces the concept of free trade. Protectionism is designed to benefit and promote local manufactures of goods, often through applying tariffs and quotas on imported goods and giving subsides to domestic producers, thus making it hard for international companies to break into the market. By derestricting imports and promoting exports, a country can utilise the comparative advantage of another country, and focus on specialising in the production of certain goods. The establishment of the World Trade Organisation (WTO) has been a prominent force in breaking down many trade restrictions and freeing up world trade.
Economic development differs from economic growth as it measures the humanitarian quality of life rather than just financial growth. Whereas economic growth is measured in GDP and import/export values, economic development is commonly measured in the Human Development Index (HDI); a United Nation rating that gives a country a score between 0 and 1 based upon factors including life expectancy, education and adult literacy, and purchasing power parity...
Please join StudyMode to read the full document