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Explain Why Did We Give Protection To The Australian Car Industry After World War 2

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1. Why did the Australian government give protection to the Australian car industry after World War 2?

The intent behind the Australian government giving protection to the Australian car industry after the second World War was for the reason that at that specific era, the car industry of Australia was perceived to be an important part of the forthcoming future of Australia in helping the country itself be self-sufficient in their strategic defence force purposes. Through implementing this protection on the car industry, many benefits arise such as increasing markets of scale to encourage productivity, sinking the costs and permitting the car industry to become internationally economical in construction and production of automobile contraptions and producing motor vehicle parts post war.

2. Give reasons for the decline in Holden’s share of car sales in Australia from over 40% in 1958 to 15.2% of total sales in 2006 and finally the shut-down in 2017. What impact will the shutting …show more content…

This allows the economy to take advantage of productivities from markets of scale and greater than before output, despite the fact that worldwide trade upsurges the size of the firm’s market which leads to reduced average costs and increase in productivity. Furthermore, production efficiencies will occur as the efficiency of resource allocation will be improved, which leads to increased productivity and total domestic output of goods and services, and the increased competition will allow for innovative production methods, new technology and marketing and distribution methods. However, the shutting down of Holden will induce short-term structural unemployment as the workers will have to find new jobs by undergoing training and reskilling

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