Outcome 1.2 Economic 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

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