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

Market output of company, (a) Increase in technology and productivity take ...

(a) Increase in technology and productivity take effect in the red bull market use and label a graph to explain the result of this change on each of the following (i) Market Pri

What do you mean by benefits, Q. What do you mean by Benefits? The bene...

Q. What do you mean by Benefits? The benefit of a project, policy or programme is the positive, expected aspect of an outcome, including the improvement in environmental qualit

Cost curves, what are the various types of cost curves?

what are the various types of cost curves?

Statistical or analytical methods of demand forecasting, Statistical metho...

Statistical methods are considered to be superior techniques of demand estimation because: a. The element of subjectivity in this method is minimum, b. Methods of es

Sources of external economies of scale, Sources of external economies of sc...

Sources of external economies of scale: Economies of Skilled Labour: This involves upgrading the skills of labour through the provision of education and training faci

Effectiveness of productive effort, Productivity:Generally, productivity me...

Productivity:Generally, productivity measures efficiency or effectiveness of productive effort. Productivity can be measured in several different ways. Physical productivity measur

Depreciation, Depreciation: This signifies the loss of value from an existi...

Depreciation: This signifies the loss of value from an existing stock of real capital (for an individual company or for whole economy), reflecting normal wear-and-tear of machinery

Factors of production, Factors of Production Factors of production are ...

Factors of Production Factors of production are the resources that are utilized to manufacture goods and services: 1. Natural resources: The things developed by acts of n

Assignment, is south africa''s economic system now more allocative efficien...

is south africa''s economic system now more allocative efficient

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