Economic decision making Essay

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TASMANIAN FORESTRY INDUSTRY STATE ANALYSIS. EXECUTIVE SUMMARY Tasmania is Australia’s most forested state, where it has one of the highest forest proportions on Earth. The Forestry industry in Tasmania is one of the most important economic resources for the Australian state, this industry is facing market problems because of the invasion of the low price imported timber products. To support the timber industry, the government has to take corrective actions like imposing tariffs on imported non-Tasmanian timber, or to offer subsidies for the local timber producers to support the domestic timber industry in front of the imported products. This report studies the effects of imposing…show more content…
Tasmania is the only state in Australia which is a net exporter of forest products. Tasmanian forest based industries are a key contributor to the Tasmanian economy with forestry operations and related processing accounting for 2.4 % of State GSP and 1.9 % of employment. According to a 2010 report by the Forests and Forest Industry Council (FFIC), the forest products and processing sector is Tasmania’s second largest economic sector in terms of value adding and financial turnover accounting for 15% of total manufacturing employment and 28 % of total manufacturing wages and salaries. Recently, a number of economic, political and social factors have all impacted the timber industry in Tasmania. The impacts of the global financial crisis, a decline in sales of woodchips to Asia have put the industry under significant pressure. To overcome all these obstacles, the Australian Government supports the ongoing efforts to increase the productivity of Tasmania forests through improved sustainable management practices. ( 1.2- GLOBAL FORESTRY INDUSTRY Forests have played a major role in human history, and periodic
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