LSO Contributions to the economy

Question 1

Gross domestic product ( GDP)

Answer 1

Total value of all goals and services produced in a contry in one year
Consumption + interests + Government spending + Net exports + imports

Question 2

LSO’s employs large numbers of people

Answer 2

Employs approximetly 33% of Australian workforce

This contributes to increased spending in the economy , and therefore more profitable businesses

Question 3

Improves balance of Payments

Answer 3

Many LSO’s export thier products to overseas markets, which contributes to Australia’s Balance of Payments
( BOP: Annual record of Australians trade and finacial transaction ( export/ imports) with the rest of the world)

Exporting products creates jobs, boosts incomes, and improves our living standards

Question 4

Contributes to research and development

Answer 4

R & D often requires large outlay of capital so it is the LSO’s that have the capacity to undertake extensive research and development, allowing businesses to improve existing products ( innovations) and create new products (inventions)

Large organisations need facilities such as transport information systems, electricity, gas, and water. Due to the importance of large scale organisations, government often plan infrastructure growth in consultation with them.
LSO’s in particular, GBEs, invest in infrastructure growth

Infustructure- Highways, railways, airports, communications systems, education and health, facilities, utility, services( water, gas, electricity)

Question 5

Negative Contributions to the Economy

Answer 5

Downsizing/ Outsourcing

Pollution

Question 6

Downsize and outsource to overseas

Answer 6

reduces the numbers of staff to reduce costs and improve productivity

Downsizing:Workplace staff reductions, with the eliminations of jobs and positions

Outsourcing ( to other companies overseas) Contracting of some organizational operations to outside supplies

Question 7

Pollution and damages to the environment

Answer 7

As LSO’s and mass producers of goods and services. LSO’s are major contributor to increasing Greenhouse gas concentration levels, causing damage to the environment

This costs the global economy , as governments and organisations have to clean up

Question 8

Other negative Contribution

Answer 8

More likely to replace employees with technology, power to price set, lack of ethical behaviour