Globalisation and Competitiveness of Small Countries: Perspectives from Down Under

Judging by their populations, contributions to world merchandise trade and foreign investment activities, both Australia and New Zealand are relatively small economies by world standards. Although they are geographically isolated from the major world markets, they are inextricably linked to the process of globalization. This article argues that, on balance, the processes of globalization have made it more difficult for these two economies to achieve and sustain strong competitive positions in world markets. The future of both countries now lies in closer alignment, and further integration, into one of the triad economies.