The Effects of Globalization on Australia

Globalization is the free movement of goods, capital and people throughout the globe. The recent wave of globalization has affected all the big economies of the world significantly, and Australia is one of those economies (Lofgren, 2009). The biggest driver of globalization throughout the globe is World Trade Organization (WTO). WTO has been establishing rules and regulations in order to enhance free trade between countries. Globalization is being viewed as an opportunity and a threat at the same time. Globalization is an opportunity because it accelerates the economic activity of a country and it increases the job opportunities in a country. It is a threat because it causes significant withdrawal of revenue from the cycle of economy of a country. Multinational Corporations also affect the local businesses of a country and they influence the market equilibrium as well. Globalization also causes exploitation of human capital, violation of environmental rules and influence over the cultural heritage of countries