Danger of over-specialising - reason for protection, Managerial Economics

Assignment Help:

Danger of over-specialising 

A country may feel that in its long-term interests it should not be too specialized.

A country may not wish to abandon production of certain key commodities even though the foreign product is more competitive, because it is then too dependent on imports of that good.  In the future, its price or supplies may diminish.  It is for this reason that countries wish to remain largely self-sufficient in food.

An exporting country may not wish to become overspecialized in a particular product.  Such over specialization may make sense now, but in the future, demand may fall and the country will suffer disproportionally.  It is for this reason that many developing countries choose not to rely solely on their comparative advantage; they wish to diversify into other goods as an: insurance policy".


Related Discussions:- Danger of over-specialising - reason for protection

Fundamental, Fundamental of managerial economic

Fundamental of managerial economic

Elasticity of price expectation, in the context of an environment of busine...

in the context of an environment of business,state briefly the implication of (1) Ee>1.....(2)Ee=1......(3)Ee=0.......(4)Ee

Theories of the firm, Define Williamson''s Model of Managerial Discretion p...

Define Williamson''s Model of Managerial Discretion practice?

Law of association, the benefits of exchange in the light of the law of ass...

the benefits of exchange in the light of the law of association, the introduction of money in direct exchange and way income gets distributed among market participants

Low fidelity prototyping technique, You have recently gained employment wit...

You have recently gained employment with a computer consultancy company. Due to your specialist knowledge in the areas of Human Factors and usability, your manager considers that y

Significance of managerial economics, discuss the significance of manageri...

discuss the significance of managerial economics in regards to business strategies employed by business entities currently operating in the global economy

Electron control inc, electron control,inc.,cells voltage regulators to oth...

electron control,inc.,cells voltage regulators to other manufacturers , who then customize and distribute the products to quality assurance labs for their sensitive test equipment.

Morris model, explain critically growth maximisation model of morris ?

explain critically growth maximisation model of morris ?

GAME THOUGH, Given the following payoff matrix (a) indicate the best str...

Given the following payoff matrix (a) indicate the best strategy for each firm (b) why is the entry deterrent threat by firm Ato lower the pruce not credible

Supply-side policies for unemployment, Supply-side policies Supply-sid...

Supply-side policies Supply-side policies are intended to increase the economy's potential rate of output  by increasing the supply of factor inputs, such as labour inputs and

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