In a bid to aid globalisation, the Australian Government established liberal trade policy agreements with low wage economies. However, according to a manufacturing report released in 2018 by the Department of Industry, Innovation and Science, it suggests liberal trade policies are hampering the growth of Australia's manufacturing industry instead of fueling economic growth. Australia’s manufacturing industry contributes 6% to the Australian GDP, however the utilisation of manufacturing has declined considerably over recent years. The Australian manufacturing industry exports $96.1 billion worth of goods and employ 856,000 people, however this industry has fallen from a high in 1995, where it contributed 14% of GDP and employed more than 1,000,000 people (Australian Government 2018.). However, the downturn of the Australian manufacturing industry is certainly not a strong indicator of the Australian economy. The following Analytical Exposition investigates the impact of globalisation and the role that low wage economies play in the challenges of globalisation that face the Australian manufacturing industry in particular Agricultural Biotechnology.

Biotechnology is the process of applying science and technology to living organisms, parts, products and models, to alter living or non-living materials to produce knowledge and biotechnology products and services. “In its simplest form, biotechnology is type of technology based on biology, it’s job is to harness cellular and biomolecular processes to develop technologies and products that help improve our lives and the health of our planet” (Biotechnology Innovation Organisation n.d). “Australia is a major force of biotechnology and pharmaceutical innovation with excellent research facilities, world-class scientists and a strong regulatory regime” (AusTrade 2019). Australia provides opportunities in biomedical, diagnostics, medical devices and agri-biotech (Aus Trade 2019.) With statistics from the Scientific American Worldview report in May 2018, ranking Australia in the top five bio-economies globally, ahead of Germany and the United Kingdom, Australia’s biotechnology industry continues to show growth for the third consecutive year. Despite the challenges of the global economy, the biotechnology industry is expected to continue growing, reaching around $8 billion in revenue over the current year.

Australia's Biotechnology industry holds a competitive position in the world regarding comparative advantage against low wage economies. These economies simply don’t possess the money to replicate biotechnology study and Australia have more skilled workers, where for example China employ workers based on quantity over quality, meaning Australia has a lower opportunity cost than China (Ross Gittins 2016.). The introduction of agricultural biotechnology has met with opposition, this is true in Europe, as people are viewing new agricultural methods and production as threats to existing production. However, the biotechnology industry is considered one of the most globalized, it is dominated by small and medium sized enterprises in most economies. (Juan Vieira 2005.) There is a trend identified by the EO 2008 global biotechnology report that many Western biotechnology companies use a method where the companies lay off workers whilst also hiring new workers due to their willingness to work for a lower wage without foregoing education or productivity levels. The report identifies this as a way to cut costs to increase opportunity to increase chances of expanding globally, eventually new workers will raise their salary as competition for their work continues. However, regarding the overall more sustainable approach to the globalization of biotechnology, it is important to say that the best way would be to enable western markets to see emerging markets as not a way to get cheaper labor but as potential consumer bases, having a wider variety of consumers which will bring in more revenue (Ernst & Young 2008.) However, it’s important to note that emerging consumer bases are yet to acquire enough funds to invest in western products, the report indicates that western companies should work in collaboration with innovative companies in the emerging markets to develop affordable products designed specifically to the local emerging markets conditions of life. (Ernst & Young 2008). The Australian Government wants local firms to be internationally competitive, this means that Australian firms can complete or sell their goods and services in markets around the world, without reliance on protection or special government assistance. The federal government uses policies to encourage trade and make local firms more competitive, for example the liberal trade policy to encourage international trade which fuels economic growth. Liberal trade policies are the actions by w