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What is prudence in the conduct of every private family can scarce be folly in that of great kingdom. If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry. Thus, instead of producing all products, each country should specialize in producing those goods that it can produce more efficiently. Such efficiency is gained through: i. Repetitive production of a product, which increases the skills of the labour force. ii.
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Today, international trade is Estimating - Estimatorroof shifting from traditional agro-products to industrial products and services, especially in And Resume And Resume developing countries like India. The acquired advantage in either a product or its process technology plays an important role in creating such a shift. The ability to differentiate or produce a different product is termed as an advantage in product technology, while the Format Resume Format ability to produce a homogeneous product more efficiently is termed as an advantage in process technology. Production of Cover Letter And Resume Example Resume Templates Free consumer electronics and automobiles in Japan, software in India, watches in Switzerland, and shipbuilding in South Korea may be attributed to Teach You How (finally) acquired advantage. Some of the exports centres in India for precious and semiprecious stones in Jaipur, Surat, Navasari, and Mumbai have come up not because of their raw material resources but the skills they have developed in processing imported raw stones. To illustrate the concept of Cover Example Resume Templates And Resume absolute advantage, an example of Template | Premium Resume two countries may be taken, such as the UK and India.
Let us assume that both the countries have the same amount of resources, say 100 units, such as land, labour, capital, etc., which can be employed either to produce tea or rice. However, the production efficiency is assumed to vary between the countries because to produce a tonne of Cover And Resume tea, UK requires 10 units of resources whereas India requires only 5 units of resources. On the other hand, for producing one tonne of rice, UK requires only 4 units of resources whereas India needs 10 units of resources (Table 2.1). Since India requires lower resources compared to UK for producing tea, it is Student School relatively more efficient in tea production. On the other hand, since UK requires fewer resources compared to India for producing rice, it is relatively more efficient in producing rice. Although each country is assumed to Cover Example Resume Templates Free possess equal resources, the production possibilities for each country would vary, depending upon These Steps Will Teach You How (finally) their production efficiency and utilization of Cover Example Resume And Resume available resources. All of the possible combinations of the two products that can be produced with a country’s limited resources may be graphically depicted by a production possibilities curve (Fig. 2.1), assuming total resource availability of Infographics 100 units with each country.
The slope of the curve reflects the ‘trade-off of producing one product over the other, representing opportunity cost. The value of a factor of production forgone for Cover Free its alternate use is termed as opportunity cost. For instance, if the Resume Sample High UK wishes to produce one tonne of tea, it has to forgo the Cover Letter Example Resume Templates production of 2.5 tonnes of rice. Whereas in order to produce one unit of rice, it has to relinquish the Sample. Sample Student Cv Resume production of only Cover Letter And Resume Templates 0.40 tonne of tea. Suppose no foreign trade takes place between the two countries and each employs its resources equally (i.e., 50:50) for production of tea and rice.
The UK would produce 5 tonnes of These 4 Easy Teach To Budget (finally) tea and 12.5 tonnes of Cover And Resume Example Templates rice at point B whereas India would produce 10 tonnes of tea and 5 tonnes of rice at point A as shovra in Fig. High School Student Cv Resume. 2.1. This would result in a total output of 15 tonnes of tea and 17.5 tonnes of And Resume Resume Templates And Resume rice (Table 2.2). Monthly 55 Must-Read Cleaning Tips (with. If both India and the UK employ their resources on production of only tea and rice, respectively, in which each of them has absolute advantage, the total output, as depicted in Cover And Resume Example Templates Fig. 2.1, of tea would increase from 15 tonnes to 20 tonnes (point C) whereas rice would increase from 17.5 tonnes to 25 tonnes (point D). Thus, both countries can mutually gain from trading, as the total output is enhanced (Table 2.2) as a result of specialization. The theory of absolute advantage is based on Adam Smith’s doctrine of laissez faire that means ‘let make freely’. When specifically applied to international trade, it refers to ‘freedom of enterprise’ and ‘freedom of commerce’. Therefore, the government should not intervene in the economic life of a nation or in its trade relations among nations, in Software - Estimatorroof the form of tariffs or other trade restrictions, which would be counterproductive.
A market would reach to an efficient end by itself without any government intervention. Cover And Resume Free And Resume. Unlike as suggested by the mercantilist theory, trading is not a zero-sum game under the theory of absolute advantage, wherein a nation can gain only if a trading partner loses. Instead, the countries involved in free trade would mutually benefit as a result of efficient allocation of their resources. Essay # 4. Theory of Comparative Advantage of International Trade: In Principles of Political Economy and These 4 Easy Will Teach (finally), Taxation, David Ricardo (1817) promulgated the theory of comparative advantage, wherein a country benefits from international trade even if it is less efficient than other nations in Letter Resume Templates Free the production of two commodities. Comparative advantage may be defined as the inability of a nation to produce a good more efficiently than other nations, but its ability to produce that good more efficiently compared to Roofing & Roof Estimating - Estimatorroof the other good. Thus, the country may be at an absolute disadvantage with respect to both the Cover Example Resume Templates And Resume commodities but the absolute disadvantage is lower in one commodity than another. Therefore, a country should specialize in the production and export of 6 Awesome Marketing Strategy a commodity in which the absolute disadvantage is less than that of Cover And Resume Example Free another commodity or in Resume | Premium Samples other words, the country has got a comparative advantage in Cover And Resume And Resume terms of more production efficiency.
To illustrate the concept, let us assume a situation where the UK requires 10 units of resources for producing one tonne of tea and 5 units for one tonne of rice whereas India requires 5 units of resources for producing one tonne of tea and Format Free. Resume Download Resume Format, 4 units for one tonne of rice (Table 2.3). In this case, India is more efficient in Cover And Resume Example Free producing both tea and rice. Resume Format Doc File Download. Thus, India has absolute advantage in the production of Cover Free both the products. Although the UK does not have an absolute advantage in any of these commodities it has comparative advantage in the production of rice as it can produce rice more efficiently. These 4 Easy Steps Teach. Countries also gain from trade by employing their resources for the production of goods in which they are relatively more efficient. Assuming total resource availability of 100 units with each country, Fig. 2.2 indicates all the possible combinations of the two products that can be produced by the UK and India. In case there is no foreign trade between India and the UK (Table 2.4) and both the Templates And Resume countries are assumed to use equal (50:50) resources for production of each commodity, UK would produce 5 tonnes of tea and 10 tonnes of rice as shown at point A, whereas India would produce 10 tonnes of tea and 12.5 tonnes of rice at point B in Fig. 2.2. If the UK employs all its resources in the production of rice in which it is more efficient than the other, India can produce the same quantum of tea, i.e., 15 tonnes (Point C) by employing only Cleaning Tips (with 75 units of its resources. It can utilize the remaining 25 units of its additional resources for producing 6.25 units of rice, which would raise the Cover Resume Free And Resume total rice production from 22.5 tonnes without trade to 26.25 tonnes after trade (Table 2.4).
Alternatively, the UK can employ its entire resources (i.e., 100 units) to produce 20 tonnes of rice and India can use only 10 units of its resources to produce 2.5 tonnes of rice so as to Tips And Tricks produce the Letter And Resume Example Templates Free And Resume same quantity of rice, i.e., 22.5 tonnes. The remaining 90 units of resources may be used by India for the production of tea, resulting in 6 Awesome Infographics an increase in tea production from 15 tonnes without trade to 18 tonnes with trade as shown at Point E. Hence, it is obvious from the Cover Free illustrations that countries gain from trade even if a country does not have an absolute advantage in any of its products as the total world output increases. The Balassa Index is often used as a useful tool to measure revealed comparative advantage (RCA) that measures the relative trade performance of individual countries in particular commodities. It is assumed to Resume Format ‘reveal’ the comparative advantage of trading countries, based on Letter Example Templates Free And Resume the assumption that the Accountant Resume Template Resume commodity patterns of trade reflects the inter-country differences in relative costs as the well as the non-price factors. The factors that contribute to the changes in Letter And Resume Resume Templates Free the RCA of a country include economic factors, structural changes, improved world demand, and trade specialization. RCA is defined as a country’s share of world exports of a commodity divided by its share in total exports.
The index for Senior Accountant Resume Template Resume commodity j from country i is computed as. X ij = i th country’s export of commodity j. X wj = world exports of Cover Letter Example Resume Templates Free And Resume commodity j. X i = total export of country i. X w = total world exports. If the value of the Roofing & Roof index of revealed comparative advantage (RCA ij ) is greater than unity (i.e., 1), the country has a RCA in Cover Letter And Resume Example Resume that commodity. The RCA index considers the intrinsic advantage of a particular export commodity and Template | Premium Resume Samples, is consistent with the changes in the economy’s relative factor endowment and productivity. Templates And Resume. However, it cannot distinguish between the improvements in factor endowments and the impact of the country’s trade policies. As indicated in Table 2.5, China has an RCA in industries such as clothing, electronics, information technology (IT) and consumer electronics, leather products, textiles, and miscellaneous manufacturing that belongs to different technology categories (i.e., low, medium, and high) but not in resource-base manufacture.
On the These Steps To Budget other hand, India has an RCA in resource-based and Cover Letter And Resume Example Resume Free, low-technological industries, such as fresh food, leather products, minerals, textiles, basic manufacture, chemicals, and clothing. It is also observed that the US, Japan, and the UK have an Estimating - Estimatorroof, RCA in high- and medium- technology categories, such as IT, consumer electronics, electronics, manufacturing, etc., whereas China’s main competitors such as Mexico, Hong Kong, and Thailand have RCA in low-, medium-, and high-technology categories. This implies that countries specializing in medium- to high-technology products may explore opportunities of expanding bilateral trade with India and those in resource-based industries may stand to benefit substantially by an increase in demand of such products in China. For example, Latin American countries mainly produce and export various commodities. The major producer of Latin America is copper, oil, soy, and coffee, as the region produces about 47 per And Resume Resume Templates cent of the world soybean crop, 40 per cent of copper, and 9.3 per cent of oil. The rising demand for commodities in China and other countries presents opportunities to Estimating Estimating - Estimatorroof these countries for expanding their production and increasing foreign exchange revenues. Similarly, the rapid growth in economic activities in India and China opens up opportunity for oil exporting countries. Thus, revealed comparative advantage may be employed as a useful tool to explain international trade patterns. Limitation of Theories of Specialization: Some of the most important limitation of theories of specialization are as follows: i. Theories of Resume Free And Resume absolute and Accountant Template | Premium Samples, comparative advantage lay emphasis on And Resume Resume Templates Free And Resume specialization with an assumption that countries are driven only by the impulse of maximization of production and consumption.
However, the & Roof Estimating Software attainment of Letter Example Free economic efficiency in a specialized field may not be the only goal of High School Student Cv Resume countries. For instance, the Letter And Resume Resume Templates Free And Resume Middle East countries have spent enormous resources and pursued a sustained strategy in developing their agriculture and horticulture sector, in which these countries have very high absolute and comparative disadvantage, so as to 6 Awesome Strategy Infographics become self-reliant. ii. Specialization in one commodity or product may not necessarily result in efficiency gains. The production and export of more than one product often have a synergistic effect on developing the overall efficiency levels. iii. These theories assume that production takes place under full employment conditions and labour is the only resource used in the production process, which is not a valid assumption. iv. The division of gains is often unequal among the trading partners, which may alienate the partner perceiving or getting lower gains, who may forgo absolute gains to Cover Letter And Resume Resume Templates prevent relative losses.
v. The original theories have been proposed on the basis of two countries-two commodities situation. However, the same logic applies even when the theories experimented with multiple-commodities and multiple-countries situations. vi. The logistics cost is overlooked in these theories, which may defy the proposed advantage of international trading. vi. The sizes of economy and production runs are not taken into consideration.
Essay # 5. Factor Endowment Theory of International Trade: The earlier theories of absolute and Senior Accountant & Example, comparative advantage provided little insight into the of products in which a country can have an advantage. Heckscher (1919) and Bertil Ohhn (1933) developed a theory to explain the reasons for differences in relative commodity prices and competitive advantage between two nations. According to this theory, a nation will export the commodity whose production requires intensive use of the nation’s relatively abundant and cheap factors and import the commodity whose production requires intensive use of the nation’s scarce and expensive factors. Thus, a country with an abundance of cheap labour would export labour-intensive products and import capital-intensive goods and Cover And Resume Templates, vice versa. It suggests that the patterns of trade are determined by factor endowment rather than productivity.
The theory suggests three types of relationships, which are discussed here: A country would specialize in production of labour intensive goods if the labour is in abundance (i.e., relatively cheaper) as compared to the cost of These Teach To Budget land (i.e., relatively costly). This is mainly due to the ability of a labour-abundant country to produce something more cost-efficiently as compared to a country where labour is scarcely available and Example Resume And Resume, therefore expensive. In countries where the capital is abundantly available and labour is relatively scarce (therefore most costly), there would be a tendency to achieve competitiveness in the production of goods requiring large capital investments. As the same product can be produced by adopting various methods or technologies of production, its cost competitiveness would have great variations. In order to minimize the cost of production and achieve cost competitiveness, one has to examine the optimum way of production in view of & Roof Software technological capabilities and constraints of a country. According to Letter Example Resume Free the factor endowment theory, a country with a relatively cheaper cost of labour would export labour-intensive products, while a country where the labour is List Samples. 55 Must-Read Cleaning Tips scarce and capital is relatively abundant would export capital-intensive goods.
Wassily Leontief carried out an empirical test of the Heckscher-Ohlin Model in 1951 to find out whether or not the US, which has abundant capital resources, exports capital-intensive goods and imports labour-intensive goods. He found that the US exported more labour-intensive commodities and imported more capital-intensive products, which was contrary to the results of Heckscher-Ohlin Model of factor endowment. Essay # 6. Cover Letter And Resume Templates Free And Resume. Country Similarity Theory of Resume Format Doc File International Trade: As per the Heckscher-Ohlin theory of factor endowment, trade should take place among countries that have greater differences in their factor endowments. Therefore, developed countries having manufactured goods and And Resume Example Templates, developing countries producing primary products should be natural trade partners. A Swedish economist, Staffan B. Under, studied international trade patterns in two different categories, i.e., primary products (natural resource products) and Monthly List Samples. Tips, manufactures.
It was found that in Cover And Resume Templates And Resume natural resource-based industries, the Marketing Infographics relative costs of production and factor endowments determined the trade. However, in the case of manufactured goods, costs were determined by the similarity in product demands across countries rather than by Cover Letter And Resume Example Free the relative production costs or factor endowments. It has been observed that the majority of trade occurs between nations that have similar characteristics. The major trading partners of most developed countries are other developed industrialized countries. The country similarity theory is based on the following principles: i. If two countries have similar demand patterns, then their consumers would demand the same goods with similar degrees of quality and Format Resume Doc File Download, sophistication. This phenomenon is also known as preference similarity. Such a similarity leads to Letter And Resume Example Templates And Resume enhanced trade between the two developed countries. ii. & Roof - Estimatorroof. The demand patterns in countries with a higher level of per capita income are similar to those of other countries with similar income levels, as their residents would demand more sophisticated, high quality, ‘luxury’ consumer goods, whereas those in countries with lower per capita income would demand low quality, cheaper consumer goods as a part of their ‘necessity’.
Since developed countries would have a comparative advantage in the manufacture of complex, technology-intensive luxury goods, they would find export markets in other high income countries. iii. Since most products are developed on the demand patterns in the home market, other countries with similar demand patterns due to cultural or economic similarity would be their natural trade partners. iv. Countries with the Cover Letter And Resume And Resume proximity of geographical locations would also have greater trade compared to Roofing Estimating & Roof Estimating Software - Estimatorroof the distant ones.
This can also be explained by various types of similarities, such as cultural and economic, besides the cost of transportation. Cover Example Free And Resume. The country similarity theory goes beyond cost comparisons. These Steps Will To Budget. Therefore, it is also used in international marketing. Essay # 7. New Trade Theory of International Trade: Countries do not necessarily trade only to benefit from their differences but they also trade so as to increase their returns, which in turn enable them to benefit from specialization. International trade enables a firm to increase its output due to its specialization by providing a much larger market those results in Letter And Resume Example Resume Templates Free And Resume enhancing its efficiency. The theory helps explain the trade patterns when markets are not perfectly competitive or when the economies of scale are achieved by the production of specific products. Decrease in the unit cost of Monthly List Samples. Cleaning And Tricks a product resulting from large scale production is termed as economies of scale. Since fixed costs are shared over an increased output, the economies of scale enable a firm to Cover Example Templates And Resume reduce it’s per unit average cost of production and enhance its price competitiveness. Companies benefit by the economies of scale when the cost per unit of output depends upon their size.
The larger the Sample. School Student size, the higher are the economies of scale. Firms that enhance their internal economies of scale can decrease their price and Letter And Resume And Resume, monopolize the industry, creating imperfect market competition. This in turn results in the lowering of market prices due to Marketing Infographics the imperfect market competition. Internal economies of scale may lead a firm to specialize in a narrow product line to Cover And Resume Example Resume And Resume produce the volume necessary to achieve cost benefits from scale economies. Industries requiring massive investment in RD and creating manufacturing facilities, such as branded software by Resume & Example Microsoft, microprocessors by Intel or AMD, and aircrafts by Boeing or Airbus, need to have a global market base so as to Letter And Resume Templates Free achieve internal economies of scale and compete effectively. If the cost per unit of Senior Resume | Premium Resume output depends upon the size of the industry, not upon the size of an individual firm, it is referred to as external economies of scale. Letter And Resume Example Templates. This enables the industry in a country to produce at a lower rate when the industry size is large compared to the same industry in another country with a relatively smaller industry size. The dominance of a particular country in the world market in a specific products sector with higher external economies of Estimating Estimating scale is attributed to the large size of Cover And Resume Example And Resume a country’s industry that has several small firms, which interact to create a large, competitive critical mass rather than a large-sized individual firm. However, external economies of scale do not necessarily lead to imperfect markets but may enable the country’s industry to achieve global competitiveness. Although no single firm needs to be large, a number of small firms in a country may create a competitive industry that other countries may find difficult to compete with. The automotive component industry o India and Roofing Estimating & Roof Estimating Software - Estimatorroof, the semiconductor industry in Malaysia are illustrations of external economies of scale.
The development of sector-specific industrial clusters, such as brassware in Moradabad, hosiery in Tirupur, carpets in Bhadoi, semi-precious stones in jaipur, and diamond polishing in Surat, may also be attributed to Letter Example Templates And Resume external economies. The new trade theory brings in the concept of economies of scale to explicate the Leontief paradox. Such economies of scale may not be necessarily linked to the differences in factor endowment between the trading partners. The higher economies of Roofing Estimating Estimating Software - Estimatorroof scale lead to increase in returns, enabling countries to Example Templates Free And Resume specialize in the production of Resume Format Resume Format such goods and trade with countries with similar consumption patterns. Besides intra-industry trade, the theory also explains intra-firm trade between the MNEs and their subsidiaries, with a motive to take advantage of the scale economies and increase their returns. Essay # 8. International Product Life-Cycle Theory of International Trade: International markets tend to follow a cyclical pattern due to a variety of Letter And Resume Example Templates And Resume factors over a period of time, which explains the shifting of markets as well as the location of production.
The level of innovation and Samples. 55 Must-Read Tips And Tricks, technology, resources, size of And Resume Example Templates And Resume market, and competitive structure influence trade patterns. In addition, the gap in technology and preference and the ability of the customers in international markets also determine the stage of Accountant Template | Premium & Example international product life cycle (IPLC). In case the innovating country has a large market size, as in case of the US, India, China, etc., it can support mass production for domestic sales. This mass market also facilitates the producers based in Letter Resume Templates these countries to achieve cost-efficiency, which enables them to Senior Template | Premium Resume Samples become internationally competitive. However, in case the market size of Cover And Resume Example Templates And Resume a country is too small to achieve economies of scale from the domestic market, the companies from these countries can alternatively achieve economies of scale by Monthly List 55 Must-Read Tips setting up their marketing and production facilities in other cost-effective countries. Thus, it is the economies of scope that assists in achieving the economies of scale by expanding into international markets.
The theory explains the variations and reasons for change in production and consumption patterns among various markets over a time period, as depicted in Fig. 2.3. The IPLC has four distinct (Exhibit 2.2) identifiable stages that influence demand structure, production, marketing strategy, and international competition as follows. Generally, it is in high-income or developed countries that the majority of new product inventions take place, as product inventions require substantial resources to be expended on RD activities and Cover Letter And Resume Example And Resume, need speedy recovery of the initial cost incurred by Marketing Strategy Infographics way of market-skimming pricing strategies. Since, in Letter Example Resume Templates the initial stages, the Accountant Resume price of a new product is relatively higher, buying the product is only within the means and capabilities of customers in Cover Letter And Resume Example Resume Templates And Resume high-income countries. Therefore, a firm finds a market for new products in other developed or high income countries in the initial stages. The demand in the international markets exhibits an increasing trend and the innovating firm gets better opportunities for exports. Moreover, as the market begins to develop in other developed countries, the Senior innovating firm faces increased international competition in the target market. In order to defend its position in international markets, the firm establishes its production locations in other developed or high income countries. As the technical know-how of the innovative process becomes widely known, the firm begins to establish its operations in middle- and low-income countries in order to take advantage of resources available at competitive prices.
The major thrust of marketing strategy at this stage shifts to price and cost competitiveness, as the technical know-how and skills become widely available. Therefore, the emphasis of the firm is on most cost-effective locations rather than on producing themselves. Besides other middle-income or developing countries, the production also intensifies in low-income or least-developed countries (LDCs). Cover Letter And Resume Example Resume Templates Free And Resume. As a result, it has been observed that the innovating country begins to List (with import such goods from other developing countries rather than manufacturing itself. The UK, which was once the largest manufacturer and exporter of bicycles, now imports this product in large volumes. The bicycle is at the declining stage of its life cycle in industrialized countries whereas it is And Resume Example Free And Resume still at a growth or maturity stage in 6 Awesome Marketing Infographics a number of Letter Templates Free developing countries.
The chemical and hazardous industries are also shifting from Format Doc File Resume Format, high-income countries to And Resume Example Resume And Resume low-income countries as a part of their increasing concern about environmental issues, exhibiting a cyclical pattern in international markets. Although the product life cycle explains the Template Resume Samples emerging pattern of international markets, it has got its own limitations in the present marketing era with the fast proliferation of market information, wherein products are launched more or less simultaneously in Free various markets. Essay # 9. Roofing & Roof - Estimatorroof. Theory of Competitive Advantage of International Trade: As propounded by Michael Porter in The Competitive Advantage of Nations, the theory of competitive advantage concentrates on a firm’s home country environment as the main source of Letter Example Resume Templates competencies and Student Sample. Sample Student Cv Resume, innovations. Cover Letter And Resume Example Templates. The model is often referred to as the diamond model, wherein four determinants, as indicated in Fig. 2.4, interact with each other. Porter’s diamond consists of the following attributes: Factor conditions refer to how well-endowed a nation is as far as resources are concerned. Marketing. These resources may be created or inherited, which include human resources, capital resources, physical infrastructure, administrative infrastructure, information infrastructure, scientific and technological infrastructure, and natural resources.
The efficiency, quality, and specialization of underlying inputs that firms draw while competing in international markets are influenced by a country’s factor conditions. The inherited factors in case of India, such as the abundance of arable land, water resources, large workforce, round-the-year sunlight, biodiversity, and a variety of agro-climatic conditions do not necessarily guarantee a firm’s international competitiveness. Rather the factors created by meticulous planning and implementation, scientific and market knowledge, physical and capital resources and Cover Resume Templates, infrastructure, play a greater role in determining a firm’s competitiveness. The sophistication of demand conditions in & Roof Estimating - Estimatorroof the domestic market and the pressure from domestic buyers is a critical determinant for a firm to upgrade its product and services. The major characteristics of domestic demand include the nature of Example Resume And Resume demand, the size and Student Sample. School Cv Resume, growth patterns of domestic demand, and the way a nation’s domestic preferences are transmitted to foreign markets. As the Indian market has long been a sellers’ market, it exerted little pressure on Indian firms to strive for Cover Free And Resume quality up gradation in the home market. However, as a result of India’s economic liberalization, there has been a considerable shift in the demand conditions. (iii) Related and Supporting Industries : The availability and These 4 Easy Steps Will Teach You How (finally), quality of local suppliers and related industries and the state of development of clusters play an Letter Example Resume Templates And Resume, important role in determining the competitiveness of a firm. These determine the cost-efficiency, quality, and speedy delivery of inputs, which in turn influence a firm’s competitiveness.
This explains the development of industrial clusters, such as IT industries around Bangalore, textile industries around Tirupur, and metal handicrafts around Moradabad. (iv) Firm Strategy, Structure, and Rivalry : It refers to the extent of corporate investment, the type of strategy, and the intensity of These 4 Easy Steps Will To Budget (finally) local rivalry. Differences in management styles, organizational skills, and strategic perspectives create advantages and disadvantages for firms competing in different types of Cover Letter And Resume Example Free industries. Besides, the intensity of domestic rivalry also affects a firm’s competitiveness. In India, the management system is paternalistic and hierarchical in Senior Accountant Resume & Example nature. Cover Letter And Resume Resume Templates. In the system of 4 Easy Steps Teach To Budget (finally) mixed economy with protectionist and monopolistic regulations, the Cover Example Resume Templates And Resume intensity of competition was almost missing in major industrial sectors. It was only after the economic liberalization that the Indian industries were exposed to market competition.
The quality of Estimating & Roof Estimating goods and services has remarkably improved as a result of the increased intensity of market competition. Two additional external variables of Porter’s model for evaluating national competitive advantage include chance and government, discussed below. The occurrences that are beyond the control of firms, industries, and usually governments have been termed as chance, which plays a critical role in And Resume Example Resume Templates Free And Resume determining competitiveness. It includes wars and their aftermath, major technological breakthroughs, innovations, exchange rates, shifts in factor or input costs (e.g., rise in petroleum prices), etc. Some of the major chance factors in the context of Monthly List Tips (with India include disintegration of the erstwhile USSR and the collapse of the communist system in Eastern Europe, opening up of the Chinese market, the Gulf War, etc.
The government has an important role to play in influencing the determinants of a nation’s competitiveness. The government’s role in formulating policies related to trade, foreign exchange, infrastructure, labour, product standards, etc. influences the determinants in the Porter’s diamond. Assessing country competitiveness : In order to Example Templates Free facilitate the quantifiable assessment of competitiveness, the World Economic Forum has developed the Sample School Student Cv Resume Global Competitiveness Index. It presents a quantified framework aimed to measure the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity. The US was ranked as the most competitive economy in the world, followed by Switzerland, Denmark, Sweden, Singapore, Finland, and Germany whereas China and India were ranked at 30th and Cover Letter Free And Resume, 50th positions, respectively.
India has made remarkable progress in improving its global competitiveness during the recent years. The rapid rise in School the share of the working age population for the last 20 years would add to favourable demographics to India’s competitiveness. However, to benefit from this India will have to find ways to bring its masses of young people into the workforce, by spending on education and improving the quality of its educational institutions so as to enhance the productivity of its young. Moreover, the country still has to take effective measures (Exhibit 2.3) to deal with its bureaucratic red-tape, illiteracy, and infrastructure bottlenecks, especially road, rail, seaports and airports, and electricity, among others, so as to boost its global competitiveness. Essay # 10. Implications of International Trade Theories: The trade theories provide a conceptual base for international trade and shifts in trade patterns. This article brings out the significance of developing a conceptual understanding of the trade theories as it deals with the fundamental issues, such as why international trade takes place, trade partners, shifts in trade patterns, and determinants of competitiveness. The initial theory of mercantilism was based on accumulating wealth in terms of goods by Cover Resume Free increasing exports and 6 Awesome Marketing Strategy, restricting imports. Trade was considered to be a zero-sum game under the Cover Letter And Resume Example And Resume mercantilism theory wherein one country gains at Resume Format Resume the cost of the other.
However, a new form of Example Resume And Resume mercantilism, known as neo-mercantilism, is followed by a number of countries so as to increase their trade surpluses. In 1776, Adam Smith advocated the concept of free trade as a means of increasing gains in world output from specialization. The theory of absolute advantage suggests that a country should produce and & Roof Estimating Software, export those goods that it can produce more efficiently. Cover Example Templates And Resume. David Ricardo’s theory of comparative advantage was based on the international differences in labour productivity and advocates international trade even if a country does not have an absolute advantage in Template | Premium the production of any of Letter Free its goods. Although it is possible for a country not to have an Senior Resume Template | Premium & Example, absolute advantage in Free And Resume production of any good, it is Samples. 55 Must-Read Cleaning Tips (with not possible for Cover Letter Resume Templates Free And Resume it not to Tips (with have a comparative advantage in any of the goods it produces. In the later case, the country should specialize in And Resume Templates the production and export of those goods that can be produced more efficiently as compared to others. The factor endowment theory highlights the interplay between proportions in which the factors of production such as land, labour, and capital are available to different countries and the proportions in which they are required for Sample. Sample School Student producing particular goods. Trade between countries with similar characteristics such as economic, geographic, cultural, etc. is explained by the country’ similarity theory. The new trade theory explains the specialization by some countries in production and exports of particular products as international trade enables a firm to increase its output due to its specialization by providing much larger market that results into enhancing its efficacy.
The shifting patterns of production location are elucidated by Letter Resume Free the theory of IPLC that influences demand structure, production, the innovator company’s marketing strategy, and international competitiveness. The theory of competitive advantage comprehensively deals with the micro-economic business environment as the Accountant Resume Template | Premium Resume & Example determinants of competitive advantage. Earlier trade theories suggested the shift in comparative advantage in low-skilled production activities from advance economies to developing countries. The product life-cycle theory too heavily relied on such presumptions. However, in recent years, the Cover Example Resume Templates And Resume rapid shift of high-value activities such as RD, technology-intensive manufacturing, and white-collar jobs to Sample. Sample High School Student Cv Resume India and Cover And Resume Resume Templates Free, other Asian countries have evoked considerable apprehension among intellectuals in the US and other advanced economies about whether free trade is still beneficial for their countries or not. This concern has been illustrated through Exhibit 2.4. It is likely to continue as a matter of serious debate and the upcoming economic thought may witness a significant deviation in terms of the support to Free. Format Doc File Resume theories based on free trade and, in him, globalization.
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