Essay about Structural Change and Australian Economy

Structural Change and Australian Economy Structural change is the change in the pattern of production in an economy as certain products, processes of production and industries disappear and are replaced by others. The past century has seen the relative decline of agricultural and manufacturing industries, and the rise of services and new technology sectors. Structural change can be caused by a wide range of economic influences including changes in the pattern of consumer demand and technological change. The speed of structural change depends on the ability of an economy or industry to adjust quickly. Peoples natural resistance to change and government regulation often impedes the process of†¦show more content†¦Deregulation of industries has been an important part of the microeconomic reform policies for the Australian economy. For example in the agricultural sector, marketing boards which were often the only buyer and seller of farm output have been dismantled. In the wheat, egg and dairy industries deregulation h as allowed a market economy, free of excessive central control, improve efficiencies and competitiveness by forcing inefficient operators out of the markets and the remaining operators to adopt technological change in order to survive. Deregulation has also been introduced in the financial sector, the transport industry and in the telecommunications industry. In the case of the telecommunications industry which was once dominated by one monopoly provider, telecom (Telstra) the market was opened up to Optus and Vodafone before being opened up to full competition. This competition helped reduce telecommunication costs dramatically, benefiting many other industries and the overall competitiveness of the Australian market. The improvement of competition across the whole economy was the main objective of the governments National Competition Policy. This policy included the Corporatisation and Privatisation of Public Trading Enterprises such as Australia Post and Telstra, competition reform in the professions, the opening up of accessShow MoreRelatedAnalyse the effects of domestic and global free trade and protection policies on the Australian economy1144 Words   |  5 Pagesï » ¿Analyse the effects of domestic and global free trade and protection policies on the Australian economy Free trade is the unrestricted purchase and sale of goods and services between countries without the imposition of protection such as tariffs and quotas. This enables economies to focus on their core competitive advantage(s), thereby maximizing economic output and fostering income growth for their citizens. Australian exports rose from $66.6 billion in 1990-91 to $300.4 billion in 2012-13, with anRead MoreAnalyse the impact of changes in the global economy on Australia’s Balance of Payments. HSC780 Words   |  4 Pagesof Payments is essentially all transactions that Australia has against the worlds trade over a given of time; showing the trade and financial flows in Australia’s Economy. Cyclical and structural factors are the main reasons of this balance position. The greatest ramification on Australia’s Balance of Payments recently has been changes in Australia’s terms of trade. Terms of Trade (which shows the relationship between the prices Australia receives for its exports and prices it pays for its imports)Read MoreInvestigative Report On Labour Market Trends1690 Words   |  7 Pagesinfluenced by changes in the bargaining power. What is Unemployment? The workforce is separated into two sections, the employed and the unemployed. An individual is defined as being employed if they work for one or more hour each week. An individual is defined as unemployed if they are currently available for work, currently searching for work and are unable to find it. As a result of an individual being unemployed, labour resources are not being utilised to their full potential in an economy. NatureRead MoreUnemployment And The Unemployment Rate1368 Words   |  6 Pagesas a rate by separating the quantity of unemployed people by all people right now in the work power. During periods of recession, an economy usually experiences a relatively high unemployment rate. Economists distinguish between various overlapping types of and theories of unemployment, including cyclical or Keynesian unemployment, frictional unemployment, structural unemployment and classical unemployment. In Australia, persons over 15 years working at least one hour per week in paid employment areRead MoreAustralia s Support For Free Trade1679 Words   |  7 PagesProtection refers to any action by a government that is designed to give domestic industries an artificial advantage in their competitiveness with foreign imports. Since the 1970s Australia has made policy changes to reduce levels of protection and to promote free trade - in order to stimulate greater industrial efficiency and to lower the prices of imported consumer, intermediate and capital goods. In its entirety, average tariff levels in Australia have continued to drop in recent years – fallingRead MorePros and Cons of an Appreciation in Australian Dollar1682 Words   |  7 PagesPros and Cons of an app reciation in Australian dollar In the recent days, Australian dollar has witnesses a significant appreciation and keeps strong. To put in a simple way, appreciation of Australian dollar, for our ordinary consumer, means we can buy more goods than before using the same amount of money. This is caused by an increase of purchase power of Australian dollar. As for choices of consumers, foreign goods are especially welcomed for the simple reason that they become relatively cheaperRead MoreAustralia s Lack Of International Competitiveness1644 Words   |  7 Pagessectors lose competitiveness. Similarly is can be seen in its narrow export base whereby in 2012-13 one third of export revenue came from coal and iron ore ($96 billion from 300 billion), furthermore 57% of Australian export revenue is made up of mineral and energy exports, whereby Australian growth has been largely fuelled by commodity exports and mining boom. Australia’s lack of international competitiveness as a result of geographical location and small population, as well as the decline of theRead MoreImpact Of Globalisation In Australia1479 Words   |  6 Pagesat the expense of Australian manufacturers and employment. The spread of globalisation, introduced many new elements into the financial markets, determining the value of the nation’s exchange rate. The intention for foreign exchange trading is international financial transfers of funds, involving interest rates, currency, equity and commodity derivatives. Through globalisation, the interest rate differentials continue to determine the level and the direction of the Australian dollar, with an increasingRead MoreAustralia s Current Economic Growth1390 Words   |  6 Pagesprices over a period of time, usually one year. It is measured by the percentage change in the consumer price index (CPI), which encompasses the price of a normal, weighted basket of goods and services purchased by households in the nation. Another economic issue is that of unemployment, which consists of situation where individuals desire to work, but are unable to find a job, and as such, labour resources within the economy are underutilised. A person is classifi ed as unemployed if they are aged 15Read MoreCauses Of Unemployment In Australia1149 Words   |  5 PagesAnalyse the causes of unemployment, its effects on the Australian economy and how they are addressed through use of macroeconomic policies. Unemployment refers to when an individual is actively seeking work and is aged 15 years or over, but is unable to find work (not hired). There are many causes and effects of unemployment that result in different actions being made by the Australian government through their use of both monetary policy as well as fiscal policy. The unemployment rate is calculated