vegeta_316
Member
What are some good examples of micro economic reform In Australian Industries??????
-
Looking for HSC notes and resources? Check out our Notes & Resources page
Micro-economic reform question, MUST READ (1 Viewer)
- Thread starter vegeta_316
- Start date
Financial Sector
First sector to experience micro
Deregulation occurred early 80s = floating of $A and removal of RBAs direct monetary controls over banks
Reforms encouraged innovation/efficiency in the financial sector by increasing comp b/w all financial enterprises through intro of foreign banks
Agriculture
- embargo on importation on sugar/dried vine fruit/tobacco been lifted
- wheat market deregulated
- NSW egg industry deregulated
- dairy industry currently going through major struc change
Transport Industries
Crucial b/c Aust size and geo position
Airlines 90s Ansett became Aust second international carrier
- once again Qantas has virtual monopoly (80% aviation market)
- struc change = come unstuck
Rail efficiency of rail industry was improved by establishment of the National Rail Corporation
- privatisation of National Rail Freight Corp + comp policy reform should improve comp
Telecommunications Industry
Early 90s Aust dominated by telecom
Now, Aust has one of the most deregulated telecommunications industries in the world (about 50 competitors) = helped to reduce costs
Telstra still virtual monopoly
National Competition Act gave access to essential infrastructure = gave other companies a chance to compete
That should get u started - why arent these in your book?
Anna
P.S. it's their not 'there'
First sector to experience micro
Deregulation occurred early 80s = floating of $A and removal of RBAs direct monetary controls over banks
Reforms encouraged innovation/efficiency in the financial sector by increasing comp b/w all financial enterprises through intro of foreign banks
Agriculture
- embargo on importation on sugar/dried vine fruit/tobacco been lifted
- wheat market deregulated
- NSW egg industry deregulated
- dairy industry currently going through major struc change
Transport Industries
Crucial b/c Aust size and geo position
Airlines 90s Ansett became Aust second international carrier
- once again Qantas has virtual monopoly (80% aviation market)
- struc change = come unstuck
Rail efficiency of rail industry was improved by establishment of the National Rail Corporation
- privatisation of National Rail Freight Corp + comp policy reform should improve comp
Telecommunications Industry
Early 90s Aust dominated by telecom
Now, Aust has one of the most deregulated telecommunications industries in the world (about 50 competitors) = helped to reduce costs
Telstra still virtual monopoly
National Competition Act gave access to essential infrastructure = gave other companies a chance to compete
That should get u started - why arent these in your book?
Anna
P.S. it's their not 'there'
saves.the.day
Member
meh seems to have covered everything. I don't want to go repeating information in another post so I'll just add some more examples and add more detail.
Privatisation of egg farming industry. Used to be heavily protected with quotas. The government guaranteed small farms to buy their eggs off them at a guaranteed price and put a cap (limit) on the number of chickens you were allowed to have (people actually went to jail for having 5000 more chooks than the limit and stuff like that.. pretty crazy if you ask me).
1990, the telecommunications market began to be deregulated. It was first opened up to Optus only. In 1997, the market was opened up to completley free competition.
For the future, the government plans to open up the postal market so you'll be able to post at Austrlaia post or an alternative.
Tax system reform. Howard completley changed the tax system, this included:
Introduction of GST
Welfare payments increased by 4%
Personal income tax reduced
Why's this microeconomic reform? is what alot of people ask. The reason is that it encourages people to work more to seek higher rewards as the reduced personal incomes tax gives incentive to earn higher wages (before it was introduced people called it 'the rich mans tax' for this reason). So it increases the supply of labour as people not working may be given an added incentive to find work and people are encouraged to work longer (even though person A works 15 hours instead of 10 hours this week, the supply of labour is increased). The shift of supply curve to the right is in effect the fundamentals of micro reform, to shif the supply curve to the right.
Privatisation of egg farming industry. Used to be heavily protected with quotas. The government guaranteed small farms to buy their eggs off them at a guaranteed price and put a cap (limit) on the number of chickens you were allowed to have (people actually went to jail for having 5000 more chooks than the limit and stuff like that.. pretty crazy if you ask me).
1990, the telecommunications market began to be deregulated. It was first opened up to Optus only. In 1997, the market was opened up to completley free competition.
For the future, the government plans to open up the postal market so you'll be able to post at Austrlaia post or an alternative.
Tax system reform. Howard completley changed the tax system, this included:
Introduction of GST
Welfare payments increased by 4%
Personal income tax reduced
Why's this microeconomic reform? is what alot of people ask. The reason is that it encourages people to work more to seek higher rewards as the reduced personal incomes tax gives incentive to earn higher wages (before it was introduced people called it 'the rich mans tax' for this reason). So it increases the supply of labour as people not working may be given an added incentive to find work and people are encouraged to work longer (even though person A works 15 hours instead of 10 hours this week, the supply of labour is increased). The shift of supply curve to the right is in effect the fundamentals of micro reform, to shif the supply curve to the right.