Changing Chenese Capability

Changing Chinese Capability

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A1 . Chinese companies are not apprehensive and are being oblivious of the environmental disturbance caused by there fast pace manufacturing in the country all the resources (i .e . farm land , water , energy , coal , etc are consumed at double the rate due to exporting of the goods 75 of there economy runs on exports to other countries . They have hurriedly reached to 69th in the world in terms of resources per person

further the Governments tough decisions on the for the protection of the environment is formulating to enhancing the cost of production of commodities produced in the country for instances the dyeing companies will have to pay for disposing of the substance which was done before for free by dumping in the lake

Profit are dipping due to several reasons such as the increase in oil prices have made a direct impact as the cost of energy is escalating furthered increasing inflation rate in the country which will cause the rise in the employee wages and lets not forget the raw material which comes from outside China which will also become expensive . The strengthening Chinese currency has also made there products expensive for the importer . Eventually the manufacturer will institute ways to save cost

The migrant worker will have to return to there villages as no work for them will get them only to poverty at least they can survive on there farm by harvesting there crops

A2 . Most imperative explanation that is pragmatic in the case evidently is that rising cost of production of sweaters leads to having an adverse effect in the country as shops close down , unemployment prevails , and inflation hits the roof and so on . Further when a country depends on one product it is know for that alone and when it produces some other product it does not get the same recognition for instance German cars are known for there excellence what about their motor bikes its not recognized it might be excellent as well but we don 't know that as we have made our perception it is very hard to get out of this bubble

There are merit of having a single product as well a country can attain economies of scale by producing one product at the lowest price and specialize themselves in that particular product and they would be recognized all over world for that particular commodity . For instance the Mercedes Benz made in Germany when they were shifting there operation to Mexico they had refuse this proposal as no one will buy a eminence car with the mark made in Mexico so they moved there operation to the US the image created does make a deference

A3 . Apart from price a country can be recognized by the quality of its particular product such as German machinery they are known for there quality assurance and durability . Differentiated product which provides unique...