SP 1.2.3 - Economic factors

Question 1

Competitive Advantage

Answer 1

• Cost of production including investment in capital and the returns received
• Increasing competition

Question 2

Consumer Demand

Answer 2

• Demand globally
• Consumption in Australia
• Constantly changing, global consumption of wine as new markets open up

Question 3

Mobility of labour

Answer 3

• Skilled Labour, mobility of skilled labour with vignerons travelling to other wine regions wither to learn new techniques or to pass on their skills

Question 4

Mobility of Capital

Answer 4

• New world = capital intensive

- Old world = labour intensive