outcome 1.2 economic contribution of a large organisation
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Outcome 1.2Economic Contribution of a
Large Organisation
The science of PRODUCTION, DISTRIBUTION, and CONSUMPTION of GOODS and SERVICES
What is Economics
Advantages of being large
Economies of Scale Lower costs per unit of output
as a result of operating on a large scale Producing a lot results in each
unit being produced more cheaply
Diseconomies of Scale Organisation can be too big to
be managed efficiently
EoS: This makes large organisations efficient producers of goods and services
Employment• Direct• Consumer
Spending• Taxes• Gov’t
Spending• Indirect• A result of
consumer spending
Develop Australia’s Industrial Base• State of Art
Technology• Innovation• Research• Work Practices• Mgt Ideals
Stimulate Infrastructure Growth• Transport –
Roads, Ports and Rail
• Utilities• Buildings
Earn Export Income• Balance of
Payments• Exports bring $
$$$ into Australia
• Gross Domestic Product (GDP)
• Australia’s largest Exports?
What do LSOs bring to the economy
What do LSOs bring to the economy
Employment•Direct•Consumer Spending•Taxes•Gov’t Spending
• Indirect•A result of consumer spending
What do LSOs bring to the economy
Develop Australia’s Industrial Base• State of Art Technology• Innovation• Research• Work Practices• Mgt Ideals• Brain Power
What do LSOs bring to the economy
Stimulate Infrastructure Growth• Transport – Roads,
Ports and Rail• Utilities• Buildings
What do LSOs bring to the economy
Earn Export Income• Balance of Payments• Exports bring $$$$
into Australia• Gross Domestic
Product (GDP)• Australia’s largest
Exports?
Employment: Taking jobs offshore or downsizing Using call centres in India and the Philipines
Industrial Base: Companies taking their technologies overseas “Brain Drain”
‘Bionic Eye Project’ Infrastructure: Governments not supporting infrastructure
growth No new rail lines and highways
Hi-Speed Rail East-West Freeway
Exports: imports Electronics and Jumbo Jets
The Negative Contributions
Activity 1.2a on page 20 Complete Test Yourself and your glossary
Outcome 1.2 Task
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