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Hand in Question

In: Business and Management

Submitted By ZZZZZ
Words 518
Pages 3
Hand in Question 1
1. Why did the Australian government give protection to the Australian car industry after World War 2?
After World War 2, it was hard for countries to trade with each other, as the countries were at war with each other. The Australian Government thought that cars would be crucial to national defence. The Australian Government wanted Australia’s economy to grow and manufacture cars just like all the other “big” countries. It will also mean that Australia would be able to become more modern. With the Government protection, the car industries in Australia were able to become successful.

2. Give reasons for the decline in Holden’s share of car sales in Australia from over 40% in 1958 to 15.2% of total sales in 2006 and finally the shutdown in 2017.
What impact will the shutting down of Holden have on the economy?
Nowadays with an increase in technology, Asian countries such as Japan were able to produce cars cheaper and in more quantity compared to Australia. This means that Japan has an absolute advantage over Australia in manufacturing cars. This means that Japanese cars are available for a cheaper amount than Holden cars and hence more people bought the Japanese cars and why Holden’s share of car sales decreased dramatically. Also it was cheaper to import items from overseas in 2006, compared to 1958, another reason why people got cars from overseas countries.
There can be both negative and positive impacts on the economy of shutting down Holden in Australia. The negative impacts include a higher level on unemployment. Most the workers are elderly and have been working at Holden for a number of years, meaning they have good skills in car manufacturing, so it will be hard for them to find new jobs with new skills. Also the suburb of Elizabeth in North Adelaide will almost become a ghost town as many will have no jobs and this means that

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