Sample Term Paper

Apart from seeing it from a current perspective, the move by Pacific Brands reflects a more general move for manufacturing sector towards the Asian countries with cheap labor (Alon 2008). This may require the government to support the services sector more as a way to make up for this loss in manufacturing as Australia, like most developed countries, may enjoy a comparative advantage in that sector. This could be done via tax benefits etc so as to export these services to the Asian countries in return for the manufacturing goods which will now have to be imported into the country.

Reliance can also be increased on primary sector where Australia has been faring well due to its geographical advantage (Edey 2007). This could be done through concession on land and the formation of advisory boards to help the beef, sheep and dairy products sector capture a greater part of the export market. There are however advantages of moves such as that by Pacific Brands. Since the company will now see it’s per unit costs dropping, it may be able to enjoy higher profit margins, becoming more profitable and perhaps more competitive in the international market. Since Australia remains the base country, the capital will eventually flow there. Since the company has pointed out that organization and idea generation will be Australian, such growth of the company may create higher level jobs for Australians (Draper 2009).

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