Selective in exports, Microeconomics

Assignment Help:

Selective in Exports:

There are many industries where India has an advantage because of relatively lower costs of all forms of manpower whether it is professional or factory labour. However, while this can give an initial advantage, it should not be taken for an enduring advantage due to the following reasons. One, as products become more sophisticated, labour as  a cost factor becomes less and less important. Two, the differences in costs are narrowed down through higher level of automation.  Three, in processes that require large number of cheap labour, the industry is bound to shift its operation along the line of the ever-declining scale of poorer countries. So a poorer country than India can eventually overtake us with yet cheaper labour. Therefore, when one has established an export market on the basis of cheaper manpower, one has to be vigilant to make sure that one builds up other advantages to compensate for the inevitable loss of this temporary advantage. 

In view of the above, we should concentrate our attention and resources on those areas where we have comparative marketing advantage instead of the traditional comparative production cost advantage. In this connection, it may further be added that although it may pay to concentrate on 'extreme focus areas', it would be more rewarding to identify the countries with low "trade intensity".

 


Related Discussions:- Selective in exports

Economic model and assumptions, what is economic model and role of assumpti...

what is economic model and role of assumptions in it.

Uses of national income statistics, Uses of national income statistics: ...

Uses of national income statistics: - It helps to organize economic data and activities. - It helps to classify economic activities into various segments or sectors. - It he

How are the limitations of the economics theory affected, How are the limit...

How are the limitations of the economics theory affected? Limitation of Economic Theory: While examining the generality of an economic theory, one must realize any assump

Short run production period and long run production period, Short run produ...

Short run production period and long run production period: The short run is a period of production during which some factors of production are fixed and some too are variable

Reverse logistic behaviour of supply chain, Purpose: this case is intended ...

Purpose: this case is intended to model supply chain, especially the reverse logistic behaviour. Description: In Cal Poly Pomona, TOM301 (Operations Management) is a core cou

1, what is market equilibrium and disequilibrium?

what is market equilibrium and disequilibrium?

Monopsony, Monopsony: Demonstrate (with a graph) how a ...

Monopsony: Demonstrate (with a graph) how a minimum wage can increase both the wage and employment in a monopsony market even when the government sets th

Production, explain 6 factors that determine volume of production

explain 6 factors that determine volume of production

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