Australia is at risk of being left out of the new wave of globalisation, says a report published by CEDA this week.
Global Chains: Australia's challenge in the evolving world economy finds that international investment is now seeking to locate expertise and facilities in a small number of efficient locations worldwide.
Production of both goods and services is becoming increasingly fragmented, geographically dispersed, and dominated by multinational companies large and small, in a series of global supply chains.
As this happens, the report says, Australia is likely to find it increasingly difficult to link into these global systems.
CEDA acting chief executive Greg Meek said the report highlights the importance of Australia's continuing to engage more with the world economy.
"We risk being left out of these evolving production chains," he said.
"Both governments and businesses need to pay more attention to creating stronger, deeper links with the rest of the world."
"CEDA has been highlighting the importance of increasing international trade and investment through its World Competitiveness Scorecard and its tax research. We believe global engagement is vital to Australia's economic future."
The Global Chains report has been written for CEDA by Professor John Houghton of Victoria University's Centre for Strategic Economic Studies.
Professor Houghton is an acknowledged international expert on the influence of information technology on production systems, and consults frequently for the OECD.
Professor Houghton says global supply chains help explain the rise of global giants like Dell, which sells its computers direct to customers via the Web and the telephone, sourcing parts mainly from Taiwan and China and assembling them in factories spread worldwide from Ireland to Malaysia.
In Australia, Professor Houghton said, firms connected into global supply chains range from carmakers to software firms to sellers of education services such as universities.
More details of CEDA's report Global Chains: Australia's challenge in the evolving world economy can be found here.
For further information please contact:
John Harris
Corporate Relations Director
Phone 03 9652 8415
Email info@ceda.com.au
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