Read the text about World Trade Organization.
World Trade Organization.
World Trade Organization Changes in the political environment and the technological development are factors that both have changed the opportunity for countries to trade services and products. It is easier for us to transfer information and transport the services and products around the world.
Fisher slightly describes advantages and disadvantages of globalization. He talks about different benefits and changes such as the new technology and its effects in the business world of today, and he also mentions that the markets are more open than before. He describes that the opponents of globalization claims different disadvantages, such as companies moving their production to countries where it is easier for them to produce without caring about labour laws, and that WTO and other organizations are undemocratic and that underprivileged people’s interests are neglected.
One section in Australia that has benefited by the globalization is the wine industry. It is a huge business and Australia is famous all over the world for the different wines the domestic companies produce. Since Australian wine is as popular as it is, the industry is benefited when the trade barriers and tariffs are reduced. It is easier for the different wine companies to enter new markets and to increase the sales. According to facts from the Australian government website Australia is “one of the top wine-producing countries in the world”.
They exported almost the double volume of wine compared to what was sold domestically. The government helps the entire wine industry in Australia in forms of reducing barriers of trade. Countries that Australia exported the largest volumes of wine to 2006/2007 were United Kingdom and United States but also Canada, Germany and New Zealand were all large markets.
A section that has been disadvantaged by the globalization could be all the workers in the different domestic industries that choose to move the production overseas. If Australian companies expand overseas and move their production these workers will compete even more when it comes to all the jobs available within the country. The domestic supply of labour will be higher than the companies demand and this will increase the unemployment. According to Homan, domestic companies will look at the opportunities overseas and come to establish their production in other countries. The wages domestically will decrease since there are fewer jobs than usual for the workers to apply.
Choose true or false:
1. One section in Australia that has benefited by the globalization is the wine industry.
2. A section that has been disadvantaged by the globalization could be all the workers in the different domestic industries that choose to move the production overseas.
3. The foreign supply of labour will be higher than the companies demand and this will increase the unemployment.
ricochet64 / Shutterstock.com
ricochet64 / Shutterstock.com