GEOG2205 Study Guide - Final Guide: Australian Dollar, Neoliberalism, Competitive Advantage
Essay Question Practice
Rebecca Myers
Exam Essay Question Practice
Ho a reet hages to Australia’s autootie aufaturig idustr e used to proide
insights into the concepts of globalisation and neoliberalism?
Changes
• 7 sa the losure of Australias last reaiig autooile fator
• The car industry grew rapidly in the 1940s due to considerable support from the government
through itrodutio of tariffs, susidies et. → as see as a er iportat idustr for
adaig tehologial apait, the atios eooi deelopet ad trasportatio
improvements
• From the 1970s the industry began to decline.
Around the same time, saw an increase in a neoliberalist reform of the economy adopted by the
government
Neoliberalism: Praises the benefits of the free market and promotes an agenda of free trade,
privatisation, deregulation and competition, and public spending restraint.
→ exemplified by the car industry as the government began decrease protection and support.
Although government assistance was provided to manufacturers to innovate (eg. Toyota hybrid
engine) to sustain industry, it was lessened comparative to other governments internationally and so
the industry was exposed to unfair competition.
Exasperating this was the combination of a high Australian dollar, low sales volume and high wages
placing pressure on the industry.
High wages was particularly pointed in the increasing globalised world.
Globalisation is the intensification of borderless (or cross-border) interactions, including trade,
collaboration and cultural exchange as facilitated by an increased technology and communicative
capabilities.
One of the most prominent results from the process of globalisation is the rise of the MNE, as
organisations have experienced a disaggregation of Chandlers 3 pillars of corporate form; nowadays,
management, marketing and production needless to be co-located, and rather, production takes
place where it is most economically viable for the country to do so.
This has led to the shiftig of aufaturig proesses to LDCs as laour osts are loer, hee
loerig osts. This proides reasoig for the pressure plaed o Australias ar idustry losing its
competitiveness.
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Document Summary
Changes: (cid:1006)(cid:1004)(cid:1005)7 sa(cid:449) the (cid:272)losure of australia(cid:859)s last re(cid:373)ai(cid:374)i(cid:374)g auto(cid:373)o(cid:271)ile fa(cid:272)tor(cid:455, the car industry grew rapidly in the 1940s due to considerable support from the government through i(cid:374)trodu(cid:272)tio(cid:374) of tariffs, su(cid:271)sidies et(cid:272). (cid:449)as see(cid:374) as a (cid:448)er(cid:455) i(cid:373)porta(cid:374)t i(cid:374)dustr(cid:455) for ad(cid:448)a(cid:374)(cid:272)i(cid:374)g te(cid:272)h(cid:374)ologi(cid:272)al (cid:272)apa(cid:272)it(cid:455), the (cid:374)atio(cid:374)(cid:859)s e(cid:272)o(cid:374)o(cid:373)i(cid:272) de(cid:448)elop(cid:373)e(cid:374)t a(cid:374)d tra(cid:374)sportatio(cid:374) improvements. From the 1970s the industry began to decline. Around the same time, saw an increase in a neoliberalist reform of the economy adopted by the government. Neoliberalism: praises the benefits of the free market and promotes an agenda of free trade, privatisation, deregulation and competition, and public spending restraint. Exemplified by the car industry as the government began decrease protection and support. Although government assistance was provided to manufacturers to innovate (eg. toyota hybrid engine) to sustain industry, it was lessened comparative to other governments internationally and so the industry was exposed to unfair competition.
