High-value Added vs. Internationally Competitive Industries Paul Krugman has argued in the past that high-value added...

High-value Added vs. Internationally Competitive Industries

Paul Krugman has argued in the past that high-value added industries do not necessarily need to be the most competitive industries in international trade at the same time. Please, list and discuss key reasons behind this argument! Would this observation apply to the same extent in we examine service industry?

Solutions

Expert Solution

High value added industries are the backbone of all industries in the world. They do not necessarily need to be the most competitive industries in international trade at the same time. This can be justified as :

Value added industries act as backbone for the economy and boost the GDP and economic growth : Value added industries like sugar industry act as backbone and boost the domestic GDP of the economy.They need not be competitive in international trade as the value addition in the domestic country is enough.
Value added products are for domestic consumption and improves the living standards of the people : Value added products improve the living standards of the people in the economy.
Value added products have got high demand worldwide.
Value added industry contribute as key factors in assessing the status of the economy.

The same concept is not applicable in service industry. Service industry revolves around value addition only as it is only about creating value to the service delivered to the end consumers. It has to be competitive as well as it has to meet the international standards prevailing worldwide.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

It has been argued that the experience of Paul Volcker's fight against inflation during the late...

It has been argued that the experience of Paul Volcker's fight against inflation during the late 1970s and early 1980s indicates that firms and workers A. had rational expectations and that they trusted Fed announcements. B. had adaptive expectations by changing their expectations of future inflation only after the current inflation rate had fallen. C. preferred high unemployment to high inflation. D. Both A and B are correct answers.

A chemical process is licensed to produce high-octane, low Sulphur blend-stocks domestically and internationally. Halliburton industries...

A chemical process is licensed to produce high-octane, low Sulphur blend-stocks domestically and internationally. Halliburton industries has newly licensed the process costing $1 million per system at its Moscow, Houston and Abu Dhabi refinery service operations. Russia requires a 10-year, straight line recovery with 10% salvage value. The United States allows a 7-year MACRS recovery with no salvage value considered. The UAE allows a 7-year recovery with switching from DDB to SL method and no salvage value considered. Which of...

2. It has often been argued that technological weakness is the bane of manufacturing industries in...

2. It has often been argued that technological weakness is the bane of manufacturing industries in Sub-Saharan Africa. With specific examples, account for these weaknesses and suggest five key measures to address them.

Define, explain, illustrate as appropriate the following: ex ante vs ex post, wealth vs income, intermediate good vs final good, value added, and ceteris paribus.

Paul Jordan has just graduated from high school and has accepted the job of help desk...

Paul Jordan has just graduated from high school and has accepted the job of help desk specialist in the home office of the DurandOil Co. As a customer service representative at the help desk, Paul answers customer questions by phone, fax, e-mail, and web-based technologies. Software is provided to assist help desk specialists in quickly finding answers to commonly asked questions about aboutparticular products and services. It is your plan, as administrative manager, to have each worker, such as Paul,...

Jennifer is a competitive runner. In the past she has won 40% of races in within...

Jennifer is a competitive runner. In the past she has won 40% of races in within a season. This season she will compete in 10 races 1. Find the probability that she will will exactly 3 races this season. 2. Find the probability that she will win between 3 and 5 races (inclusive) this season

Value of an internationally traded product has different components with different magnitude. Would you please take...

Value of an internationally traded product has different components with different magnitude. Would you please take a product that is produced in two different countries (e.g., USA and Canada), and discuss how the value of a product or service can be converted tin common currency without undervaluing or underestimating the product or service. Thanks.

1A. Buckeye Industries has a bond issue with a face value of $1000. The value of...

1A. Buckeye Industries has a bond issue with a face value of $1000. The value of Buckeye’s asset is $1200. In one year they will be worth either $800 or $1400. The going rate on T-bill is 4 percent. What is the value of debt, equity, and interest rate on debt? 1B. You have been hired to value a new 30-year convertible bond. The bond is 7% annual coupon bond with a face value of $1000. The conversion price is...

Mrs. A has been taking high doses of glucocorticoids for much of the past 2 years...

Mrs. A has been taking high doses of glucocorticoids for much of the past 2 years to control severe rheumatoid arthritis. She has now developed hypertension and type 2 diabetes and would like to stop taking the cortisone because of the unwanted changes in her appearance. Discussion Questions How does Cushing’s syndrome affect the individual? Discuss how hypertension and diabetes have developed and the potential complications of these conditions. Discuss other potential problems that Mrs. A may experience resulting from...

4. You are the CEO of Valu-Added Industries, Inc. (VAI). Your firm has 10,000 shares of...

4. You are the CEO of Valu-Added Industries, Inc. (VAI). Your firm has 10,000 shares of common stock outstanding, and the current price of the stock is $100 per share. There is no debt; thus, the “market value” balance sheet of VAI looks like: VAI Market Value Balance Sheet Assets $1,000,000 Equity $1,000,000 You then discover an opportunity to invest in a new project that produces positive cash flows with a present value of $210,000. Your total initial costs for...

Subjects