Introduction
Australian manufacturing has undergone massive transformations since the 1960s when it dominated the Australian economy forming 28% of the gross domestic product (GDP), or the total value of goods and services produced by a country over a period of time, until present where it only forms 8% of Australia’s GDP (as of 2010-11) . This decline can be seen as the result of structural changes mainly economic liberalisation, or the lessening of government intervention in the economy, since the 1980s under Prime Minister Bob Hawke and continuing into the present . The result of this economic liberalisation has been the most profound on the car manufacturing and the textiles, clothing and footwear (TCF) industries which had previously enjoyed high levels of protection mostly in the form of import tariffs . This essay will focus on the impact of tariff reductions on the competitiveness, or the ability of a firm to supply goods and services to the market, of the Australian TCF manufacturing industry as a whole and how firms have had to adapt in order to remain competitive against cheaper imports by focusing on a case study of Arts Spot Pty Ltd. The Australian TCF industry until the present-day still maintains a great dependence on protection …show more content…
These products range from apparel, footwear and textiles for households to technical commodities such as those used in construction, aircrafts and packaging . The Australian TCF industries as of 2015 accounts for approximately $1.3 billion of industry added value with a 5.5% share of the total manufacturing gross added value , and employs roughly 32 000 people either full-time or part-time , whilst Arts Spot represents a small proportion of the whole industry with annual turnover of roughly $3 million and the employment of 17 people
Australian manufacturing has undergone massive transformations since the 1960s when it dominated the Australian economy forming 28% of the gross domestic product (GDP), or the total value of goods and services produced by a country over a period of time, until present where it only forms 8% of Australia’s GDP (as of 2010-11) . This decline can be seen as the result of structural changes mainly economic liberalisation, or the lessening of government intervention in the economy, since the 1980s under Prime Minister Bob Hawke and continuing into the present . The result of this economic liberalisation has been the most profound on the car manufacturing and the textiles, clothing and footwear (TCF) industries which had previously enjoyed high levels of protection mostly in the form of import tariffs . This essay will focus on the impact of tariff reductions on the competitiveness, or the ability of a firm to supply goods and services to the market, of the Australian TCF manufacturing industry as a whole and how firms have had to adapt in order to remain competitive against cheaper imports by focusing on a case study of Arts Spot Pty Ltd. The Australian TCF industry until the present-day still maintains a great dependence on protection …show more content…
These products range from apparel, footwear and textiles for households to technical commodities such as those used in construction, aircrafts and packaging . The Australian TCF industries as of 2015 accounts for approximately $1.3 billion of industry added value with a 5.5% share of the total manufacturing gross added value , and employs roughly 32 000 people either full-time or part-time , whilst Arts Spot represents a small proportion of the whole industry with annual turnover of roughly $3 million and the employment of 17 people