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

Assignment Help:

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".


Related Discussions:- Danger of over-specialising - reason for protection

Eceonomic therios, Ask questiHow does economic theory contribute to manager...

Ask questiHow does economic theory contribute to managerial decisions? on #Minimum 100 words accepted#

What is the economic role of government, Q. What is the economic role of go...

Q. What is the economic role of government? What are the roles? Meaning: economic role is the role played by the government in uplifting the economy. The important roles: 1.

Disguised unemployment, Disguised unemployment Situation where some pe...

Disguised unemployment Situation where some people are employed apparently, but if they are withdrawn form this job, total production remains the same. In most developing coun

Infant industry argument - reason for protection, Infant Industry Argument ...

Infant Industry Argument Advocates of this maintain that if an industry is just developing, with a good chance of success once it is established and reaping economies of sale,

Elasticity and consumption expenditure, The relationship between, total exp...

The relationship between, total expenditure and price elasticity of demand has summed up in the below table: Table: Elasticity and Consumption Expenditure Elas

Selling a particular brand of tea, A company is selling a  particular bran...

A company is selling a  particular brand of tea and wishes to introduce a new flavor. How will the company forecast demand for it.

Marginal Revenue Function, if market demand is Q= 30 - 3P how do you write ...

if market demand is Q= 30 - 3P how do you write the marginal revenue function as a function of Q

Neoclassical thinking, neoclassical thinking assumes that all firms are est...

neoclassical thinking assumes that all firms are established to make profit has been challenged by managerial discretion model.How successful have been these models to maximize pro

Inflation is not possible under the gold standard, "Inflation is not possib...

"Inflation is not possible under the gold standard." Is this declaration true, false, or uncertain? Describe your answer

ME, Is a “perfectly competitive market” an efficient mechanism for the allo...

Is a “perfectly competitive market” an efficient mechanism for the allocation of scarce resources? When it is, explain why. When it is not, document reasons for either inefficient

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd