1. LSO’ S AND THE A USTRALIAN E CONOMY Page 19

2. C ONTRIBUTIONS OF LSO’ S Despite there being more small – medium sized organisations in Australia, LSO’s still significantly contribute to the Australian economy. GDP Employment Balance of Payments Research & Innovation Infrastructure Growth

3. G ROSS D OMESTIC P RODUCT (GDP) The total monetary value of output produced in a country in one year.

4. E MPLOYMENT LSO’s employ a large percentage of our total workforce.

5. G LOSSARY Downsizing – A reduction in a company’s work force through the elimination of jobs. Productivity – A measure of the functioning and efficiency of a production system. Outsourcing – The process of using another business to undertake some task or work process.

6. B ALANCE OF P AYMENTS An annual record of Australian trade and financial transactions (export/import) with the rest of the world. LSO’s assist in earning export income.

7. R ESEARCH AND I NNOVATION A large amount of money (capital expenditure) is used to carry out research and development (R & D) LSO’s are often encouraged to undertake this, however due to its expense and high risk, the government has to provide financial incentives in forms of grants or taxation rebates. Eg. Apprenticeships Australia

8. I NFRASTRUCTURE G ROWTH Infrastructure – Physical resources of an area which benefit the entire community. Most Australian infrastructure is provided by GBE’s or recently privatised GBE’s.