Economics/Economics

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Question
Why should a business man sell the products to foreign countries ? Why country like India promotes exports and international business ?

Answer
I thank you for selecting all experts and me to answer your question.

A. Face severe competition in the home country.
For any product or service in the home country there may be many competitors. It may be difficult to sell all products produced. Even under this condition for any product, production can be expanded for foreign market, where there is a demand.

B. To get higher rate of profits.
Any item has a price in the home country. But the same could be sold at a higher price in a foreign nation. It is because of the higher purchasing power of the foreign customers and their currency. Also when profit in a strong foreign currency is remitted to the home country, it multiplies because of foreign exchange rate.

C. Expanding the production capacity beyond the demand of the domestic country.
For any product or service in the home country the demand cannot increase continuously.  Even though there is no local demand for a product, production can be expanded for foreign market, where there is a demand.

D. Cross the Political conditions
The local political conditions may change to unfavourable situations. It could be increase in taxes, control on the raw materials, ban on product sales et… It may be difficult to sell in the home market. Even under this condition for any product, production can be expanded for foreign market, where there is a demand.

E. Availability of technology and managerial competence
The current production technology may become out dated. The marketing management methods may need changes. The customers might have migrated to other geographical area etc.. It may be difficult to sell in the home market. But a foreign base can provide the latest technology for mass production, at a lower cost.  Hence,  production can be expanded for foreign market, where there is a demand.

F. Lesser Cost of manpower, transportation
Manpower with  required skill to produce a product may migrate, or change to other professions. This may end in increase in wages and salaries. Also due to increase in oil prices and increase in transport (logistics) costs, the cost will increase.   Under this conditions for any product, production can be continued and expanded for foreign market, where there is a demand and higher price.

G. Foreign Exchange.
Export and International business brings foreign exchange to the domestic country. This reduces the balance of payment (international debts) of the domestic country. That is why the local government encourages export and international business.

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Dr.VSR.Subramaniam

Expertise

Basically a B.Sc (Physics) from the University of Madras, India. Started the career in production engineering under German and Italian experts. MBA in Management from IIM, Ahmedabad (India). Ph.D (Management) from the University of Bomaby (the first ever awarded in this subject). Headed the computer centres of Multi nationals; "Data Processing expert" of the Commonwealth, London (To implement World Bank and UNDP Computer softwares); "Consultant Adviser" to the Caribbean Development Bank (CDB), Barbados. Associated with Nobel Laureate in Economic Science-1979, Arthur Lewis (Past President of CDB) & 4 more on his introduction. Visiting professor to many universities. A Trained ISO 9001:2000 Quality Auditor. Over 40 years of combined experience in Accounts, Computer Software, Economics, Engineering, Management, Science, Technology, Research & Development and Qulaity systems. Author of over 60 Application Research papers. Currently a free-lance consultant in ISO Quality Systems, Socio-Economic development acceleration, Innovative software designs. Can answer any question in Theoritical/Applied-economics with an in-depth and innovative dimension. I DO NOT ANSWER : 1. STATISTICAL data & analysis. 2. PRIVATE questions, as they do not appear for PUBLIC view & search 3. Examination & Project report oriented questions. Website http://www.drvsrs.com

Experience

Experience in the area Over 40 years in Industrial, Service and Economic development sectors. Socio-economic development oriented expertise (1982-86). With Commonwealth Fund for Technical Cooperation, London as a "Data Processing Expert". With Caribbean Development Bank, Barbados (UNDP,World bank set up) as a "Cnsultant Adviser". See "http://www.drvsrs.com/drvsrs.htm" and "http://www.drvsrs.com/publication.htm". National & International awards. R & D Author at http://ideas.repec.org/e/psu50.html and http://www.ssrn.com/author=360079

Organizations
Intellectual Consultants. A proprietory Research and Development unit under the theme "Innovation. Information & New Concepts"

Publications
See at http://www.drvsrs.com/publication.htm & http://dvsrs.com/store/page2.html

Education/Credentials
See full details at http://www.drvsrs.com/drvsrs.htm (1) D.Litt in Computer Science - 1983. World University, USA. (2) Ph.D - 1975. First management doctorate awarded by the University of Bombay, India, after the inception of the subject. (3) MBA – 1966. IIM, Ahmedabad. India. First batch. 4) B.Sc - 1959. Physics. University of Madras, India

Awards and Honors
Biography is listed in International Who is Who of Intellectuals (UK), Men of Achievement ( UK ), Men of Distinguished Contributions (USA). National and International awards and Citations.

Past/Present Clients
See at http://www.drvsrs.com/software.htm

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