| In this research I will analyze the determinants of Australia's foreign policy decision-making by focusing mainly on the influence of the pattern of foreign direct investment (FDI) and trade on policy.; I believe that, despite the increased variety in academic research on the determinants of international relations, very little, if anything, has been said about the effects of the patterns of investment, production, and trade on foreign policy in Australia.; Australia's lack of influence in international affairs is related to its historic dependency on her powerful allies (Great Britain and the United States of America).; It is the hypothesis of this study that this dependency is rooted in the comparative advantage-based pattern of national production and international trade as initially designed by imported capital and foreign MNCs, and perpetuated by the continuous dependence on them in the development of the country's resources in the same pattern.; The recommendation, therefore, is that a new model for national economic development is needed to reduce economic dependence, facilitate national self confidence and security, and to leverage influence in international relations. Therefore, the questions researched in this dissertation are the following: (1) How has the historic pattern of FDI, production, and trade in Australia shaped the country's thinking on international relations and foreign policy? (2) To what extent did this pattern constrain an independent foreign policy in Australia? (3) Why hasn't Australia effectively diversified out of dependence on primary exports as the engine of economic growth? (4) What is the state of the Porter Diamond Model factors in Australia? (5) Can particular sectors/industries, or national traits, or firm behavior, be identified as the future sources of competitive advantage for Australian producers? (6) Can the Porter model of Competitive Advantage of Nations provide any viable recommendations for foreign policy thinking in Australia?; The structure followed in treating the above is: Foreword; Chapter 1. Theoretical Review; Chapter 2. The Historical Setting: Roots of Dependence; Chapter 3. Foreign Policy in the Twentieth Century; Chapter 4. Empirical Study: Survey and Interview Analysis; Chapter 5. Summary, Conclusions, and Recommendations. |
