18 Participants in the global economy
Before you start
Main focus
Australia is part of a global economy and we are all global citizens participating in a global economy. No longer does one country take raw materials and components to process and produce a good or service. There are a number of participants in the global economy including consumers, producers, workers (employees) and governments. Part of their role is to supply, produce, distribute and consume goods and services on a global scale. This chapter examines the participants in the economy and how they interact with other economies. It also explores supply chain management and investigates the activities of transnational and multinational corporations in the global economy.
Why it’s relevant us
Every day we buy goods made overseas or, if they are made in Australia, goods that include raw materials that have come from another country. Different economies have been become increasingly interdependent and companies have to establish relationships with overseas suppliers and distributors. As the world becomes more interrelated the role of companies, especially multinational corporations, has become even more crucial.
Inquiry questions
- How do Australian consumers, businesses, workers and government participate in a global economy?
- How can we identify the participants in the global supply chain?
- What impact can the supply chain have on countries?
- What types of activities do transnational and multinational corporations carry out in the global supply chain and business activities?
Key terms
- Deregulation
- Globalisation
- Logistics
- Multinational organisation
- Outsourcing
- Supply chain
- Supply chain management (SCM)
- Transnational corporation
Let’s begin
Business and individual citizens have always had a natural desire to seek out and expand opportunities for trade and commerce. In the past 50 years opportunities to do this have expanded because of advances in communications and technology. Government has encouraged a growth in international commerce through a process of deregulation. Australian consumers, businesses, workers and governments are active participants in the global economy of the twenty-first century. We often buy goods and services without thinking about where the products and services originally came from.