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

3rd degree price discrimination(monopoly), What is third degree price discr...

What is third degree price discrimination? Explain with case analysis,give two successful & unsuccessful cases of 3rd degree price discrimination.

Strategies and policies for administrative reforms, STRATEGIES AND POLICIES...

STRATEGIES AND POLICIES FOR ADMINISTRATIVE REFORMS: As stated in a United Nation's Publication, following strategies and policies are necessary to bring about administrative i

Consumer behaviour - marginal utility, Given the following table MUx MUx/P...

Given the following table MUx MUx/Px Qty MUy MUy/Py 80 40 1 68 17 52 26 2 32 8 20 10 3 28 7 16 8 4 24 6 8 4 5 20 5

Homework, Which of the following has not occurred over time in the past sev...

Which of the following has not occurred over time in the past several decades in the physician services market? A. The level of competition has increased. B. Economies of scale ha

Canon, analyze Swot of Canon

analyze Swot of Canon

Short run costs, A film studio in Hollywood produces movies according to t...

A film studio in Hollywood produces movies according to the function q = F(K;L) = (2=100)K^0.5L^0.5 In the short run, capital (studios, gear) is xed at a level of 100. It costs $

Cost curves, If the average variable cost curve is horizontal, what is the ...

If the average variable cost curve is horizontal, what is the shape of the short-run marginal cost curve? What shape would the short-run average cost curve be?

Consider an upstream firm in russia that mines iron, Consider an upstream f...

Consider an upstream firm in Russia that mines iron ore at a total cost of $15 q , where q is the number of tons of ore. This upstream firm then ships ore to Germany for processi

Cost funtion, pls i want to estimate a cost function for the data i coollec...

pls i want to estimate a cost function for the data i coollected from a research on cassava production .i have the cost for each input and output but do not how to go abo0ut it.

Effects of price changes, Question 1: Tourism is often seen as a way of...

Question 1: Tourism is often seen as a way of generating income, particularly foreign exchange. The economic spin-off effects are viewed as the most important aspect of touris

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