Economical and Political Influences, influence the availability of food currently on offer In Australia significantly and will be explored In more detail. Economy Is the financial system of a country or region developed by the government that ensures efficient production, distribution and consumption of goods and services to meet the demands of the population and the supply of money. Around the world there are countries with stable(strong) or weak economies.
Stable economies are generally expanding and draw attention of Investors. They are guarded by government legislation to guarantee their stability. They are primarily found in developed countries. Weak economies are not expanding and therefore do not draw the attention of investors. Because these economies are not appealing, the government does not feel the need to guarantee their stability. Weak economies can also develop if governments are unstable. Weak economies are primarily found in developing countries.
The Australian government ensures that Australia has a secure and successful food industry by ensuring our economy remains stable. This ensures that Australia has a stable flow of food products available for the community. As well as having a large and stable economy, Australia has a ‘market economy’. This implies that the production and distribution of goods and services happens predominantly through private enterprise, and price Is ruled by demand and supply.
An example of this Is the competition between Coles and Woolworth which Is reducing prices of products available in Australia currently. This kind of competition in supermarkets, reduces monopolies from forming in Australia and increased range in food availability. Consequently, it is producers and consumers that impact on the availability of food errantly on offer in Australia by prescribing how much we pay for food, the kind of food produced and how It Is distributed.
Although the government plays a small part economy to guarantee that we keep developing, and by making sure that private enterprise follows the legislation related to appropriate supply and distribution of food in the economy. The Australian economy engages the interest of foreign companies that desire a definite share of a successful market. The Australian economy appeals to numerous consumers and continues to develop. This market economy influences the food available in Australia, in that, what is demanded or consumed the most by the community, is supplied.
For example if several areas consume large amounts of apples, then more apples will be grown and procedures will be put into place to ensure a regular supply. This will then bring in more money for the economy as consumers will be satisfied and supply of money will be regular, ensuring a stable and strong economy. Australia is a thriving country where absolute poverty is not widespread. Absolute poverty occurs when the majority of the community are in poverty and are unable to et one or more of their basic needs of food, water, clothing and shelter.
Although there is a large supply of material goods and the economy is successful in Australia, there is a small percentage of people who struggle in relative poverty. Relative poverty is when a small section of the community are unable to meet one or more of their basic needs of food, water, clothing and shelter. For people in relative poverty in Australia, their food availability is impacted negatively, in that they generally cannot afford certain foods, and as a result have to turn to cheaper food which are usually sees nutritious.
Political influence on food availability is interrelated with the economy and vice versa. As stated above, the government develops the economy of a county or region. For a government to operate smoothly, it must have the resources to put strategies and policies into place. Governments gain monetary funds through a few ways; Overseas loans (the “foreign deficit”) The sale of assets (for example, crown land) Creating personal taxes Countries with stable economies (Australia) can receive loans of money on the world market.
Taxes can have a positive impact on the availability as they allow the overspent to repay loans which will mean our economy as a country will be more stable, this will allow our economy to be appealing to foreign investors who want to trade with Australia, which will lead to more variety of foods being available in Australia. However, if a deficit increases too much, taxes may be increased to assist in the repayment of loans. If taxes are raised, it will have a negative impact on food availability as consumers will have less disposable income (the part of an individuals income remaining after deducting personal taxes).
This can cause inflation because revisions Australia is a country where there is a small percentage of people struggling in relative poverty. If taxes are increased and inflation occurs, the level of relative poverty will rise because people will not be able to afford the basic needs of food, water, clothing and shelter. Consequently, people who are not living in relative poverty, but have lower incomes will have to buy cheaper (often less nutritionally beneficial) food as an alternative to expensive (nutritionally beneficial) food and indulgent items will be sacrificed.
The Australian government plays a part in the economic and political influence on odds available in Australia currently. Although Australia is a small country, it is multicultural. It would be unattainable for the Australian food industry to generate the variety of foods on Australian supermarket shelves and expect for our country to stay economically viable. To ensure that our economy stays economically viable, we import goods and services from numerous countries around the world.
Nearly every kind of food is available in Australia, provided that the foods adhere to Australian food standards. This is positive to food availability as it reduced the risk of pathogens which. This can also be negative to the availability of food of offer currently in Australia, as if the foods are stopped from entering Australia it will lower availability of the particular product. Currently, the Australian government has stopped it’s policy of ‘protection’ or taking action to give local producers an advantage over imported goods.
This means that through a system of; tariffs (taxes) embargoes(sanctions) and subsidies, the government is able to control the availability of foreign products in Australian supermarkets. This can be negative not he availability of foods, as Australia is a literature nation and people of different nationalities have different preference for foods. A tariff is a tax imposed on imported goods,for example Australians must pay a goods and services tax (SST) on most products excluding basic products such as bread and milk.
An embargo(sanction) is a ban placed on a particular imported product, for example in 2010, Australia placed sanctions on products from Fiji, Burma, Syria, Zombie, and individuals associated with the Implosive regime in the former Yugoslavia. A subsidy is a direct aid given to food producers, an example of this is overspent introducing special protection safeguards that include an emergency tax on imported products so that SSP ‘Reardon’ does not have to leave 114 employees(growers) unemployed.
These tariffs, embargoes and subsidies can positively effect the availability of food in that the more competition that is brought to Australia, the lower the prices will be, consequently consumers will have a larger range of foods available that are cheaper and more easily accessible. The Australian government has turned to a policy of “trade liberation’s”. This means that the policy of protection will be lower. The government suspects that this oral market. An illustration of this in Australia is free trade agreements with New Zealand, New Zealand beef is sold in Australia without a tax.