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Purchasing Australian Made Goods and Its Effect on Our Economy

In: Business and Management

Submitted By SimonStephen
Words 1679
Pages 7
Purchasing Australian Made Goods and its Effect on Our Economy

ABSTRACT The purpose of this essay is to analyse the effects of purchasing Australian made goods on the Australian economy in relation to determining the degree to which it is advantageous. The research concludes that in fact it is far more beneficial for consumers to purchase goods unbiasedly. The economic theory of a comparative advantage denotes that a country should aim to specialise its production as to channel resources efficiently and achieve economies of scale nationally. The increasing trend in globalisation has meant an increase in the availability of goods and services increasing our Gross Domestic Product (GDP) through benefiting from increased trade and maxamising on the benefits of fluctuations in the international business cycle. The gains from free trade agreements such as advances in technology and capital equipment have effectively made Australian production far more efficient. In combination, they provide a sufficient argument to conclude that purchasing goods unbiasedly is far healthier for the economy than strictly purchasing Australian made goods.

Key Words:
Globalisation, Comparative Advantage, Free Trade, Economies of Scale, Economic Growth, Production

Introduction As more countries move toward a market capitalist model, a broader range of substitute goods become available, and this increase in choice between substitute goods proves a time consuming issue for the average consumer in today’s society. Therefore, whilst buying Australian made goods is healthy for the economy, in an increasingly globalised society with continuing integration of economic systems, it is far more beneficial for consumers to purchase goods unbiasedly. The economic theory of comparative advantage, effects of globalisation, and free trade agreements all support this notion audibly....

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