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

Consumer behaviour, how do I explain the hicksian and slutsky theory of con...

how do I explain the hicksian and slutsky theory of consumer behaviour in an examination

Production possibilities curve, what happen when a new resources has been d...

what happen when a new resources has been discovered for computer

Describe the theory of effective demand, Q. Describe the Theory of effectiv...

Q. Describe the Theory of effective demand ? Effective Demand:Theory of effective demand was developed separately in the 1930s by Michal Kalecki andJohn Maynard Keynes. It eluc

Gdp, current rate of gdp

current rate of gdp

Cross price , Calculate the cross-price elasticity of demand between comput...

Calculate the cross-price elasticity of demand between computers and printers, where a 10 percent decrease in the price of computers results in a 15 percent increase in the quantit

Benefits of education, Benefits of Education The returns a person/soci...

Benefits of Education The returns a person/society (state/government) gets from acquiring education is referred to as benefits from education. If such returns are paid/receive

Decay toothbruch, What is the arc cross elasticity of demand between Stop d...

What is the arc cross elasticity of demand between Stop decay''s toothbrush and Decay fighter''s toothbrush? What does this indicate about the relationship between the two products

Foreign exchange: what is hard currency, International economic relations a...

International economic relations also depend, in large calculate, on monetary =issues.  You are unlikely to accept the Turkish Lire in payment for your wages in this country, easil

Currency was used in the 1700s, What currency was used in the 1700s? Ans...

What currency was used in the 1700s? Ans) this is depends on the country. Most currencies, though, were based on gold and silver. In America, in the 13 colonies, tobacco wa

Slutsky theorem -mathematical presentation, Slutsky Theorem - Mathematical ...

Slutsky Theorem - Mathematical Presentation: We already know from the first order conditions of utility Maximisation that,   where D ij is the co-factor of the ith ro

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