Assignment Example | Topics and Well Written Essays - 500 words - 129

Assignment Example e policy focused on reallocation of resources to reflect market forces which was followed by reduction and removal of tariff protection in addition to corporatization and privatization of government business enterprises (Australia 1998). The microeconomic reforms aimed at improving the efficiency and effectiveness of industries and therefore impose competition (Gittins & Forsyth 2008). When more and more industries become efficient per unit production the costs will eventually be lowered (Gittins & Forsyth 2008). This will automatically results to increased profit made by the business. The main objective is to ensure that producers transfer and supply their resources to the industries that are efficient. This will see abandonment of those industries which are not using the resources efficiently. The implementation of the microeconomic reforms basing on the 5 sector flow model has seen sharper competition develop between lower and foreign investments. More and great incentives are now available for local investors to improve their productivity by reducing costs and seeking new markets (Gittins & Forsyth 2008). There is great openness to trade and many people are encouraged even to specialize in business. Moreover, prices of commodities have also lowered and things are much affordable to the domestic consumers. Competition in communication sectors has seen advancement since the reforms ended monopoly discrimination of single business (Gittins & Forsyth 2008). The microeconomic reform policies have one major advantage. It is upon individual businesses to come up with the best strategies to sell and overcome competitors. This has seen service delivery and quality of products improve. One of the shortcomings is conflict among competing business companies (Budget.gov 1998). The free business environment needs to have regulation. This will ensure there is respect among competing companied as far as competition is concerned. Australian microeconomic policy has a major