For the Australian economy, the 1980s were different from other decades. Many of the major differences between the 1980s and other decades reflected, or were reflected in, the Australian economy’s links with the global economy. Particularly important during the 1980s were the responses to structural changes taking place in the global economy that were a result of increasing economic interrelationships across national borders. This chapter examines these changes from three aspects. First, it describes briefly what happened to the Australian economy in its international dimensions during the decade; second, it analyses the major changes in the international economy that affected Australia; and third, it examines Australia’s response to these developments.