Global links notes

Akhil Bonu

Industries
Primary

Secondary

Tertiary

Extracted from the ground

or natural resources

Refined products from

natural resources

Services

Mineral ores

Machinery

tourism

Wool

Food

education

Globalization and the global consumer

Globalization is the movement of people, money, goods and
ideas across countries, the breaking down of national barriers
and the establishment of a global village
In todays society much of the products that we use are made
in various countries.

Importing and exporting

Imports are what Australia buys from other countries and
exports are what Australia sells to other countries
Australia imports a variety of primary, secondary and tertiary
products, however Australia's primary export business is in
the primary industry
All countries need to import and export because all countries
have more than enough in one area of needs and wants,
however they cannot produce everything that they need

Exporting
Australia primarily exports primary products like ores
and wool and agriculture
The main countries that Australia exports to are
China, US, Japan, Korea, NZ and the US
Australia exports because it has an abundance in
things like wool or ores, and we trade our abundance
to other countries

Importing
Australia imports for several reasons.
One reason is because Australia cannot produce
enough by itself to fulfill all of its needs and wants.
Another reason is because of the fact that Australia
can purchase goods from other countries for a
cheaper price because of the foreign exchange rate
Importing also encourages competition
Australias primary source for importation is China, at
around 47%, followed by the US

Shares and stock market

Recently it has become much easier to invest money
in overseas companies, especially over the internet
It is now also possible to put money in an overseas
account
Brokers are the best way to invest money for people
who are unsure about the world of investment

Transnational companies
TNCs (transnational companies) are companies that operate
in several countries.
TNCs are a primary factor in globalization, as they ignore
national barriers
There are a number of reasons that domestic companies
choose to become TNCs.

Reasons that a domestic company

goes international

Fewer government regulation

Lower production costs
Makes it easier to aquire resources
Increased market
Tax minimization
Cushioning economic cycles: if one country is an a
reccession, another countrys economy will be
booming
Minimized risk of competition

Employment issues-TNC
TNCs must deal with a number of issues
Often senior management must be bicultural, so
they can operate in the host country as well as the
country that they are in
Labour standards will be different in different
countries
Tax and various other business laws will be different
in different countries

Risks and issues for TNCs

In many countries, TNCs must deal with political risks, which
are political events which will affect that countrys economic
state and ultimately the businesss operations
Because of the different laws in different countries: It will be
harder to enforce and deal with: Contract laws, legal disputes,
and intellectual property
In todays society, consumers r becoming increasingly
concerned with a businesss environmental and social
considerations

Foreign Aid
Foreign aid is where one country provides financial and/or
technical aid to another, usually where a developed country
assists a developing country or a country that recently
experienced a natural disaster
Loans
Grants: Loans that do not require repayment
Development programs
Food and emergency aid: For natural disaster victims
Education and training

Non-government aid

Non-government organizations (NGO)

Religious organization such as World Vision
Voluntary organizations such as CBM Aus
Non-religious international like red cross

Government aid
Government aid
AUS-AID: Australian agency for international
development
Giving aid assists with developing links with
other countries