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Outline two positive contributions that large-scale organisations make to the economy - VCE - SSCE Business Management - Question 1 - 2016 - Paper 1
Question 1
Outline two positive contributions that large-scale organisations make to the economy. These contributions are significant for overall economic performance and stab... show full transcript
Worked Solution & Example Answer:Outline two positive contributions that large-scale organisations make to the economy - VCE - SSCE Business Management - Question 1 - 2016 - Paper 1
Step 1
Contribution 1: Employment Opportunities
Answer
One key contribution that large-scale organisations (LSOs) make to the economy is the generation of employment opportunities. LSOs typically hire a substantial number of employees, which helps reduce unemployment levels. For instance, companies like IKEA not only provide jobs but also create positions that require varying skill levels, catering to a large segment of the workforce. This fosters greater disposable income among employees, leading to increased consumer spending and stimulating economic growth.
Step 2
Contribution 2: Economic Output and Exports
Answer
Another significant contribution made by LSOs is their impact on economic output and exports. Large-scale organisations often engage in manufacturing and exporting goods, which enhances the national economy. For example, Australian-based LSOs export local products, thus bringing foreign currency into the economy. This not only bolsters the Balance of Payments but also strengthens the local manufacturing sector, paving the way for further investment and development within the economy.