Danger of over-specialising - reason for protection, Managerial Economics

Danger of over-specialising 

A country may feel that in its long-term interests it should not be too specialized.

A country may not wish to abandon production of certain key commodities even though the foreign product is more competitive, because it is then too dependent on imports of that good.  In the future, its price or supplies may diminish.  It is for this reason that countries wish to remain largely self-sufficient in food.

An exporting country may not wish to become overspecialized in a particular product.  Such over specialization may make sense now, but in the future, demand may fall and the country will suffer disproportionally.  It is for this reason that many developing countries choose not to rely solely on their comparative advantage; they wish to diversify into other goods as an: insurance policy".

Posted Date: 11/30/2012 4:59:35 AM | Location : United States







Related Discussions:- Danger of over-specialising - reason for protection, Assignment Help, Ask Question on Danger of over-specialising - reason for protection, Get Answer, Expert's Help, Danger of over-specialising - reason for protection Discussions

Write discussion on Danger of over-specialising - reason for protection
Your posts are moderated
Related Questions
In the city of Gelato the market for ice cream is perfectly competitive. Aggregate demand for ice cream is: where p is the price for one cone of ice cream. All ice cream pr

Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment

A study of 86 savings and loan associations in six northwestern states yielded the following cost function. I''ve been given the following data; C=2.38- .006153Q1 + .000005359Q2 +

Write the forecasting techniques There are many forecasting techniques available to person assisting the business in planning its sales. Take for instance a forecasting metho

One lumber producer may locate a plant in the same area.  If it does, there will be more competition for labor and the labor supply function facing Northern will shift to

Direct intervention   The government can also intervene directly in the economy to see that its wishes are carried out.  This can be achieved thorough: a.     Price and i

Q. Production Planning in demand forecast period ? Long term production planning can assist the management in organising long term finances on practical terms and conditions. S

limitations of managerial ecomomics

Assumptions of Monopolistic Competition Monopolistic competition as the name implies, combines features from both perfect competition and monopoly.  It has the following featu

THE STRUCTURE OF POPULATION AND SUPPLY OF LABOUR The structure (also called age distribution or composition) of population, or the number of people in the different age groups