Impact of Globalization on Employment Levels
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Questions and Answers

Explain how Free Trade Agreements (FTAs) contribute to a country's GDP growth.

FTAs enhance GDP growth by promoting trade, reducing barriers, and stimulating local job creation and tax revenues.

Describe the significance of fair competition under ANZCERTA.

Fair competition under ANZCERTA ensures that trade between Australia and New Zealand develops equitably, benefiting both economies.

What is one key outcome of AANZFTA that benefits exporters from Australia and New Zealand?

AANZFTA provides new opportunities for exporters to access the ASEAN international supply chain.

What are immediate actions companies can take to fulfill their environmental responsibility?

<p>Companies can reduce carbon emissions, implement recycling programs, and use biodegradable materials.</p> Signup and view all the answers

Identify a specific aim of Free Trade Agreements regarding trade barriers.

<p>FTAs aim to eliminate trade barriers, facilitating smoother and more efficient international trade.</p> Signup and view all the answers

What ethical considerations should businesses take into account when offshoring labor?

<p>Businesses should avoid using sweatshops with low wages and excessive work hours.</p> Signup and view all the answers

How does AANZFTA promote legal security for investments in ASEAN countries?

<p>AANZFTA offers legal protection for investments, enhancing certainty for service suppliers and investors from Australia and New Zealand.</p> Signup and view all the answers

How can outsourcing benefit a company, and what ethical responsibilities do they have toward the outsourced party?

<p>Outsourcing allows companies to focus on core activities while ensuring fair treatment and appropriate wages for the outsourced parties.</p> Signup and view all the answers

Discuss the role of management in ensuring ethical practices in offshore labor.

<p>Management should visit manufacturing sites and engage with local unions to verify adherence to ethical labor practices.</p> Signup and view all the answers

What is the significance of globalisation in the context of business ethics?

<p>Globalisation creates opportunities and challenges for businesses to maintain ethical standards across diverse markets.</p> Signup and view all the answers

Explain how unemployment rates in developed countries impact wage levels and job applicant pools in these nations.

<p>Higher unemployment rates lead to lower wages and a larger applicant pool, while lower unemployment rates result in higher wages and fewer applicants.</p> Signup and view all the answers

Discuss why businesses prefer manufacturing in developing countries based on employment dynamics.

<p>Businesses prefer developing countries for manufacturing due to lower labor costs, cheaper supplies, and higher profit margins.</p> Signup and view all the answers

How has communication technology influenced global business collaboration?

<p>Communication technology facilitates easier collaboration among businesses across countries, enabling them to work together effectively.</p> Signup and view all the answers

Describe the impact of globalization on the spread of skills and innovation.

<p>Globalization promotes the sharing of ideas and skills, leading to the dissemination of new innovations and business models worldwide.</p> Signup and view all the answers

Analyze how transportation technology has evolved as a result of globalization.

<p>Transportation technology has improved, allowing for increased movement of goods across borders, fueled by globalization.</p> Signup and view all the answers

What role do free trade agreements play in international cooperation as part of globalisation?

<p>Free trade agreements encourage collaboration between nations by reducing tariffs and barriers to trade, promoting economic interdependence.</p> Signup and view all the answers

How does increased access to international labour benefit domestic markets?

<p>Increased access to international labour enhances skill diversity and productivity in domestic markets, potentially leading to innovation and improved services.</p> Signup and view all the answers

Describe the impact of a flooded domestic market on local businesses.

<p>A flooded domestic market may compel local businesses to reduce prices or seek profit overseas to maintain competitiveness.</p> Signup and view all the answers

What is the significance of multinational societies on cultural understanding?

<p>Multinational societies promote a greater understanding of diverse cultures through interaction, fostering tolerance and cooperation.</p> Signup and view all the answers

Explain how a lack of international cooperation can hinder globalisation.

<p>A lack of international cooperation can lead to increased trade barriers, limiting the flow of goods, services, and ideas across borders.</p> Signup and view all the answers

In what ways can online platforms create new markets for domestic businesses?

<p>Online platforms allow domestic businesses to reach a global audience, expanding their customer base and diversifying revenue streams.</p> Signup and view all the answers

What strategies might domestic businesses employ to remain competitive in a crowded market?

<p>Domestic businesses may adopt cost-cutting measures, innovate their products, or enhance customer service to stay competitive.</p> Signup and view all the answers

How do World Trade Organisations contribute to international cooperation?

<p>World Trade Organisations facilitate negotiations and dispute resolutions, promoting fair trade practices and compliance among nations.</p> Signup and view all the answers

Why is the establishment of positive global relationships crucial for international organisations?

<p>Positive global relationships foster collaboration, enhance trust, and enable more effective problem-solving at an international level.</p> Signup and view all the answers

What are the economic benefits of increased sales of home grown products for businesses in Australia?

<p>Increased sales lead to greater profits remaining in Australia.</p> Signup and view all the answers

How does the growth of home grown businesses impact local employment opportunities?

<p>It leads to more employment opportunities for locals.</p> Signup and view all the answers

What role does increased government revenue play regarding home grown products?

<p>Greater profit from sales increases taxes collected from businesses.</p> Signup and view all the answers

Explain the relationship between lower unemployment levels and crime rates.

<p>Lower unemployment typically results in less crime.</p> Signup and view all the answers

How do quality Australian products contribute to international branding?

<p>They create demand for Aussie products overseas.</p> Signup and view all the answers

In what ways can increased local income affect citizens' lives?

<p>It improves their standard of living by providing more spending power.</p> Signup and view all the answers

What is the significance of tax revenue from home grown businesses?

<p>It increases funds for essential public services.</p> Signup and view all the answers

What are the consequences for businesses that exploit workers in sweatshops?

<p>They risk having a terrible public image and may not maintain long-term success.</p> Signup and view all the answers

How can global businesses improve labor conditions in developing countries?

<p>By collaborating with local unions and adhering to fair wages, conditions, and health regulations.</p> Signup and view all the answers

What role does environmental sustainability play in business strategy?

<p>It helps businesses meet their needs while preserving resources for future generations and can enhance market positioning.</p> Signup and view all the answers

What are some benefits of implementing Corporate Social Responsibility (CSR) in a business?

<p>It can enhance societal growth and improve public perception, leading to better customer loyalty.</p> Signup and view all the answers

Explain the importance of measuring a business’s carbon footprint.

<p>It helps identify environmental impact and aids in developing strategies for waste reduction and energy efficiency.</p> Signup and view all the answers

How can businesses utilize environmental sustainability to boost employee morale?

<p>Employees feel they contribute to society through sustainable practices, leading to improved morale and reduced absenteeism.</p> Signup and view all the answers

What ethical standards should businesses follow to ensure responsible labor practices?

<p>Businesses should adhere to fair wages, provide proper working conditions, and comply with health regulations.</p> Signup and view all the answers

Why is it critical for businesses to consider their public image regarding labor practices?

<p>A poor public image due to unethical labor practices can damage a company's reputation and profitability.</p> Signup and view all the answers

Identify a key global issue that businesses might address through CSR efforts.

<p>Climate change is a significant global issue that businesses can impact through CSR initiatives.</p> Signup and view all the answers

Study Notes

Impact of Globalization

Employment Levels

  • Developed countries typically experience lower employment levels than developing nations.
  • High unemployment rates in developed countries allow businesses to pay lower wages and increase their applicant pool.
  • Conversely, lower unemployment in developed countries results in higher wages and limited applicant availability, pushing businesses to develop nations for cheaper manufacturing, leading to reduced costs and increased profits.

Global Spread of Skills and Technology

  • Rapid advancements in communication technology enhance international collaboration.
  • Improved transportation technology facilitates greater movement of goods and ideas.
  • Globalization promotes sharing of innovation, education, and best practices.

Free Trade Agreements (FTA)

Role of FTA

  • FTAs foster GDP growth and aim for mutual benefits among participating countries.
  • They facilitate freer trade by removing barriers, creating job opportunities and increasing local tax revenue.

Features of ANZCERTA

  • Strengthens Australia-New Zealand relations and economic ties.
  • Promotes trade under fair competition while progressively removing trade barriers.

Features of AANZFTA

  • Encourages economic engagement and cooperation among Australia, New Zealand, and ASEAN nations.
  • Reduces or eliminates tariffs, providing exporters new opportunities in the ASEAN region.

Ethics in Global Business Decisions

Environmental Responsibility

  • Businesses must actively engage in practices that minimize environmental harm, like reducing carbon emissions and utilizing renewable energy.
  • Implementing recycling and using biodegradable materials enhances a company's image and encourages employee support.

Use of Offshore Labor

  • Offshoring involves relocating business processes to nations where labor is cheaper, but ethical considerations are crucial.
  • Companies should avoid exploiting workers in poor conditions and ensure fair treatment through visits and cooperation with local unions.

Outsourcing

  • Outsourcing involves hiring third parties for non-core activities, allowing companies to focus on primary functions.
  • Ethical obligations include fair treatment, respect, adequate wages, and safe working conditions for outsourced workers.

Benefits of Homegrown Products

  • Increased sales of Australian products abroad keep profits local and create employment opportunities.
  • Higher local employment and government revenue result from successful homegrown businesses, furthering community welfare.
  • Promoting quality Australian products enhances their global demand and brand value.

International Cooperation

  • Globalization nurtures collaborations via FTAs, WTO, WHO, and UN, leading to better intergovernmental relations.
  • Increased access to international labor, skills, and distribution networks fosters diversity and understanding of cultures.

Domestic Market Dynamics

  • A saturated domestic market may force businesses to seek profitability overseas.
  • Online platforms can create new markets, compelling domestic businesses to competitively price their products.

Ethical Practices in Global Business

  • Ethical operations align with standards for proper conduct, especially regarding labor rights, particularly in sweatshops.
  • Collaborating with local unions ensures compliance with labor rights and fair working conditions.

Environmental Sustainability

  • A focus on sustainability benefits future resource availability while enhancing business reputation.
  • Positive environmental practices boost employee morale and reduce absenteeism.

Corporate Social Responsibility (CSR)

  • CSR encourages businesses to operate in ways that benefit society and the environment.
  • Participating in social issues and community-building initiatives can enhance a company's public image.

Financial Market Deregulation

  • Deregulation allows companies greater access to international financial markets, expanding their customer base.
  • Facilitates cost-effective global expansion strategies, enabling firms to grow market share.

Financial Growth Opportunities and Loss Minimization

  • Businesses expand internationally to increase revenue and reduce production costs.
  • Sourcing cheaper suppliers overseas lessens the impact of losses in any one market.

Tax Minimization Strategies

  • Tax minimization involves legal arrangements to reduce overall taxation.
  • Tax havens are locations offering low tax rates, encouraging foreign businesses to invest with limited disclosure to other governments.

Transfer Pricing

  • Companies may set subsidiaries in low-tax countries to lower overall tax burdens by adjusting transfer prices for goods exchanged within the corporate structure.

Home Government Incentives

Government Grants

  • Financial assistance from agencies like Austrade encourages Australian businesses to export, reducing initial costs and promoting international expansion.
  • Export Market Development Grants reimburse significant promotional expenses for overseas expansion.

Taxation Incentives

  • Tax concessions, including exemptions from GST for exports, improve cash flow for businesses engaged in international trade.
  • Various schemes allow refunds and exemptions on duties related to exported goods, supporting exporters financially.

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Description

Explore how globalization affects employment levels in both developing and developed countries. This quiz examines the relationship between unemployment rates and wage structures, highlighting the contrasts faced by different economic regions. Test your knowledge on this critical aspect of global labor dynamics.

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