Discuss the goals of a firm and analyse the issues that impact on the ability of Australian firms to engage in external economies of scale.

Businesses and firms are a vital part of the economy. They are organisations that effectively combine the factors of production to provide a good or a service. Firms are the major production units within the Australian economy. Their size, behaviour and performance impact upon the overall productive capacity. Firms contribute towards the growth of the economy with the production of goods with growth in sales, employment and regional development. Growing businesses will employ more people …

…more mines in order to satisfy demand. The recent agreements between China and Australia over uranium exploration and mining have created a higher demand for uranium oxide. BHP Billiton is a signed beneficiary of the agreement and has been undertaking exploration projects for further uranium reserves for mining. Regulations however, prevent the establishment of these mines and thus will create limits with supply to China which is current one of the biggest raw materials user.