Large-Scale Organisations have significant power and are able to influence the economy in a positive way.
LSOs contribute to the employment of the country. LSOs employ over 200 people in multiple locations. These employees pay taxes to the government increasing the available funding as well as the LSOs who pay taxes on their profits. As LSOs employ such a large number of people it also decreases the unemployment rates. This also leads to the government not having to support as many unemployed citizens, which therefore saves the funding for other important purposes.
LSOs also help to build international relationships and increase exports. LSOs contribute their goods and/or services to the international market. LSOs also employ people from overseas when they operate internationally, which strengthens the relationships between our trading partners.
LSOs can also assist in the country’s economic growth. Employees spend money that they earn from the LSO to buy other goods and services. The LSO as a whole also spend money on goods and services specifically required for production and maintenance of the operations. This helps to improve the Gross Domestic Product and the Balance of Payments.
LSOs help to improve the skill base of the employees of their organisations. LSOs provide training for their employees whilst also funding education and training programs. This benefits the economy as the government doesn’t have to provide as much funding as the organisations as contributing for their own employees.
Due to their size, LSOs have the ability to undertake extensive research and development, which can lead to improving and creating new and existing products. This can lead to increased spending within the economy.
LSOs can contribute to the economy through encouraging the competition between different organisations. LSOs compete against other organisations within the same market. Each organisation seeks to gain a competitive edge, which can be done by lower the prices of goods and/or services and improving quality. This helps to lead to increased spending.
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