Changes to Structure of Industry Flashcards
Define Structural Change
Changes in the pattern of production that reflect changes in technology, demand and the global economy
How have global economic trends impacted manufacturing?
Worldwide Reduction in Protection
East Asian Economies are more internationally competitive in the production of manufactured goods
This has seen Australian manufacturing decrease, with a renewed focus on our commodities, for which demand is relatively inelastic
Australia’s percentage of manufacturing exports has fallen from 13% in 1990 to 9% in 2020
How have global economic trends impacted agriculture?
The decline of agricultural exports in recent decades:
- large fluctuations in world prices
- trade protection influenced export revenue (EU subsidise 33% of farmer income)
- extreme weather patterns (floods and fire) reducing
output and productivity
Agricultural exports - 1989-1990 (23%), and 2019-2020 (10%)
Potential Future Changes
Movement away from manufacturing, agriculture
Movement towards services and commodities (33% then, 54% now)