It may not be possible for others to make the leap to become global or even multinational players. But it is in our interests for them to try. There are a host of uncertainties associated with globalisation. The one certainty is that we cannot halt the process, even if we want to. A small open economy, a floating dollar and an absolute reliance on foreign capital inflows leaves us adrift on the global tide.
Globalisation can undermine sovereignty.
Witness the reaction to the threats of opportunistic US hedge funds to, in effect, trash the Australian dollar if Shell's Woodside bid is blocked, regardless of the national interest sensitivities the bid raises. The best chance we have of retaining some sovereignty is to retain head offices and influence over our major companies and their boards and executives. That's also our best chance of maximising the economic benefits associated with the location of major corporations. It isn't inevitable that the domiciles and head offices of BHP Billiton, NAB or AMP will end up being London or New York. Some functions and some people might transfer and the decision-making might be decentralised to other parts of the globe, but transfers of domicile are costly and disruptive.