"Globalisation is the phenomenon in which the degree of global human interaction increases to such an extent that both its primary effects and the reaction it provokes give rise to numerous new developments." .
- Ruud Lubbers.
Globalisation is a result of overcoming the communication barriers, between nations, created by geographic distance. Due to technological advancements, and increased political and economic relations, developed nations, such as Australia have benefited from globalisation through higher living standards, decreased unemployment rates and national growth and development. These benefits come from Australia's involvement in trading in the global market.
Trade is the exchange of goods and services between countries. Through trade, Australia becomes better off by trading domestically made products in exchange for other goods and services that are wanted or needed. "Over 75% of many of our rural and mining products are exported" (Dixon. T, O"Mahony. J, 2001, p7). Some of the products that Australia exports include livestock, coal, sugar, rice and citrus fruits.
By focusing on producing certain products, Australia becomes a specialist of that product. Together with other countries specializing in other sectors of production, Australia becomes interdependent of other nations. This means that Australia relies on imports from other countries for goods and services, which are not available in Australia. Having to produce goods for off shore markets, as well as domestic markets, will result in more jobs being available in the Australian labour market. "One in five Australian jobs depend on exports, and from 1983-84 to 1993-94, over 400,000 more Australian jobs were created by Australia trading with the world." (Department of Foreign Affairs and Trade, 2001) .
Another benefit of exporting goods is that a business has a bigger market to sell to, meaning more products are sold, more profits are made and therefore higher wages can be given to employees.
