COMPETITIVE ADV. & DIS-ADV. IN EXPORT OF SERVICES
Master of Commerce – M.Com First Year Solved Assignments for July 2019 and January 2020 Admission Cycles
M.COM First Year Tutor Marked Solved Assignment
Course Code: IBO – 03
Course Title: India's Foreign Trade
Assignment Code: IBO-03/TMA/2019-20
Coverage: All Blocks
Course Title: India's Foreign Trade
Assignment Code: IBO-03/TMA/2019-20
Coverage: All Blocks
IBO – 03 India's Foreign Trade Solved Assignment for 2019-20
Q5.) Write short notes on the following:
(3.) India's competitive advantages and disadvantages in the export of services.
Ans: The service sector is the lifeline for the socio-economic growth of a country. It is today the largest and fastest-growing sector globally contributing more to the global trend, the Indian Services sector has witnessed a major boom and is one of the major contributors to both employment and national income in recent times. The service sector in India today accounts for more than half of India's GDP. Since independence, there has been a marked acceleration in Services sectors. It shows that this sector is the fastest growing sector in India, contributing significantly to GDP and GDP growth rate. However, it is still useful to broadly find out the advantages that India offers and the disadvantages it suffers from in services exports.
(A.) Competitive Advantages :
(1.) An important aspect of the services sector is that they are generally labor-intensive. India is blessed with ample labor. Also, many services need not only unskilled, but also semi-skilled and skilled labor. India is in a position to offer plenty of semi-skilled and skilled labor. This gives the Indian services sector and edges over its competitors in securing orders from a number of developing and developed countries.
(2.) India has a large domestic market for a number of services. This creates sufficient economic strength and learning capacity to manage a large number of areas of the services sector.
(3.) The infrastructure facility in terms of transport, hotels, etc, is now fast developing to make Indian tourism appealing to tourists, especially foreign tourists. The cost of tourism in India is very low and it is, therefore, more alluring.
(4.) The GOI is now encouraging the service sector and has enacted many laws to promote export of trade.
(B.) Competitive Disadvantage:
(1.) The mobility of labor to promote the export of services is restricted because of the visa policies of importing governments. Many governments do not want to liberalize their visa policies.
(2.) Many areas of the services sector are labor-intensive. However, globally are being treated as capital-intensive with the advancement of technology.
(3.) Necessary finance including export finance is just not available for many areas of the services sector at a lower cost.
(4.) The reliability of service supply is yet another factor about which Indians are often not very serious. Indian suppliers have to realize the critical importance of reliability in the continuance of getting orders.
(A.) Competitive Advantages :
(1.) An important aspect of the services sector is that they are generally labor-intensive. India is blessed with ample labor. Also, many services need not only unskilled, but also semi-skilled and skilled labor. India is in a position to offer plenty of semi-skilled and skilled labor. This gives the Indian services sector and edges over its competitors in securing orders from a number of developing and developed countries.
(2.) India has a large domestic market for a number of services. This creates sufficient economic strength and learning capacity to manage a large number of areas of the services sector.
(3.) The infrastructure facility in terms of transport, hotels, etc, is now fast developing to make Indian tourism appealing to tourists, especially foreign tourists. The cost of tourism in India is very low and it is, therefore, more alluring.
(4.) The GOI is now encouraging the service sector and has enacted many laws to promote export of trade.
(B.) Competitive Disadvantage:
(1.) The mobility of labor to promote the export of services is restricted because of the visa policies of importing governments. Many governments do not want to liberalize their visa policies.
(2.) Many areas of the services sector are labor-intensive. However, globally are being treated as capital-intensive with the advancement of technology.
(3.) Necessary finance including export finance is just not available for many areas of the services sector at a lower cost.
(4.) The reliability of service supply is yet another factor about which Indians are often not very serious. Indian suppliers have to realize the critical importance of reliability in the continuance of getting orders.
COMPETITIVE ADV. & DIS-ADV. IN EXPORT OF SERVICES
Reviewed by Simran
on
April 19, 2020
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Reviewed by Simran
on
April 19, 2020
Rating:
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