Professional Documents
Culture Documents
Narawade
roll no 06 26 33 43 44
Weakness Lack of Technological Development Lack of trade membership Poor labour law Lower productivity Dependent on cotton
Opportunities
Threats
Growth rate
Market New market Development
Competition
Elimination of quota system Threat to traditional markets
1997 Asia attracted almost half of the total capital inflow Growth rate of GDP 8-12% Criticism by economist Paul Krugman Thailand's economy developed into a bubble fueled by "hot money crony capitalism
On other hand US economic started developing Growing export to china Improper policies Withdawal of money
Reduction in value of currencies Businesses collapsed Millions of people fell below the poverty line in 19971998
Thai baht
24.5
41
40.2%
Thailand
170
102
40.0%
Indonesian rupiah
2,380
14,150
83.2%
Indonesia
205
34
83.4%
Philippine peso
26.3
42
37.4%
Philippines
75
47
37.3%
Malaysian ringgit
2.5
4.1
39.0%
Malaysia
90
55
38.9%
850
1,290
34.1%
283
34.2%
Size of the market Growth stage of the market The degree to which firm can influence price Relative strengths of buyers and sellers
Cash flow problem Recession in domestic and overseas market Spinning industry dependent on export market
Problem of wages and job Demand recession and steep fall in yarn export
Pradyuman Chatterjee, Vidya Rao and Mrinal Haldar conducted the studies on Indian Textile Companies. Study of Demand , Supply and Cost Conditions to come up with a plausible solution. Study of Power Mills, Power looms and Handlooms.
The Short Run Supply Function : -30+10P The Total Demand Function : 70-5P Where P= Price in Rupees The Average Constant Cost= Rs. 7 per metre.
Constant Cost Situation: Perfectly competitive industry with a horizontal long-run industry supply curve causes no change in production cost or resource prices.
During October 2008, total output of the textile sector came down by 10%.
Investments in textiles were also decreasing, ultimately affecting the profitability of the industry.
Some biggest apparel companies in India, located in Ludhiana in Punjab generating has suffered a 50% loss in sales especially the exports during 2008.
Textile industries are running on 75% of their capacities, or have reduced their three shifts into one.
Reduce production costs Improve profitability of mills. Improve quality More price-competitive Domestic market
5% interest reimbursement on the normal interest rate charged by the lending agency on rupee-term loan.
Varying rates of capital subsidy on the purchase of new equipment & machinery.
Funding to private handloom entrepreneurs, cooperatives, NGOs, minimum of 10 handlooms housed in a common work area. Textile units are eligible under the TUFS for soft-loans for modernising their operations through nationalized banks.
Definition: A perfectly competitive industry with a negatively-sloped long-run industry supply curve that results because expansion of the industry causes lower production cost and resource prices.