Impact Of Tariff Reductions On The Economy Essay examples

1166 Words Jul 26th, 2015 5 Pages
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 and government assistance indicated by an effective rate of assistance twice that of the average for the manufacturing industry therefore indicating that the industry might still have a long way to go in terms of becoming truly…

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