The rise of Indian software industry Question 1 To what extent the theory of Comparative advantage explain the rise of Indian software industry? Answer Theory of Comparative Advantage David Ricardo has developed theory of Comparative Advantage. Which was later developed by Heckscher-Olin. They all argued that all countries have different factor endowments of labour‚ land and capital inputs. Therefore‚ Countries should be able to specialise in and export products that they can efficiently produce
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What is the theory of comparative advantage? What is the theory of comparative advantage? International trade began at long time ago and it influences our life and economic. The reason why people have motivation to trade to others countries are because: the theory of comparative advantage‚ the imperfect markets theory and the product cycle theory. The idea of comparative advantage has been first mentioned in Adam Smith’s and then it was studies deep and detail by David Ricardo. In his opinion‚
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Theory of Comparative Advantage Historically‚ nations have been trading with each other for hundreds of years for profit or because they do not have enough resources (land‚ labor and capital) to satisfy all the needs of consumers. For example‚ Japan has a highly skilled labor force that use technologically advanced equipment to produce cars and electrical equipment; however it does not have its own oil fields. Saudi Arabia has large supplies of oil‚ but lacks the built capital to produce cars
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and more software industries move their companies over seas. It is also very easy to transfer software from one continent onto another due to today ’s technology. India has a comparative advantage over software because they specialized in this field‚ they do not need many resources to make it and they get the people to do it. Because of this they can export their product to other countries and buy some other product which they do not make. The comparative advantage theory explains the rise of Indian
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4. Theory of comparative advantage: The theory provides a basis for explaining and justifying international trade in a model world assumed to enjoy free trade‚ perfect competition‚ no uncertainty‚ costless information‚ and no government interference. 5. Limitations of comparative advantage: a. Countries do not appear to specialize only on those products that could be most efficiently produced by that country’s particular factors of production. b. Governments interfere with comparative advantage
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CORPORATE CULTURE AND THE INDIAN SOFTWARE INDUSTRY Introduction This article tries to explain the concept of corporate culture in general‚ its effects on the performance of employees in an organization. It then dwells on the specifics of the Indian software industry and then goes on to find out how organizational culture affects the performance of the software industry giving examples of specific software companies. Understanding and assessing your organization’s culture can mean the difference
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IS CHINA A THREAT IN INDIAN SOFTWARE INDUSTRY:- From my point of view I belived that it is rather posing a opportunity instead of threat .Matter of concern is how we r taking a lesson from China about its a rapidly growing economy.Everybody r crying for its prodct which r very cheap at the same time they are as good as Japanese product in terms of quality. We should focus on how china is producing such a quality product at so much cheap rate.When we became the part of globalization we expected
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Chinese software Baidu (search engine) is in 6th position among top websites of the world. • Chinese softwares such as QQ (instant messenger)‚ and Xunlei (download manager) are well known today. • Chinese softwares are of less cost. So‚ people prefer them. • Some software professionals are not working for India. They are working for foreign countries. More than 100‚000 Indians migrating to the United States each year for better-paid software jobs. This is a big disadvantage to Indian software industry
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The theory of comparative advantage is perhaps the most important concept in international trade theory. As the economies that exist in our world our becoming increasingly more intertwined‚ it is becoming even more important. Nearly every country in the world depends on other countries to supply them with goods that they cannot produce in their own country. I believe that comparative in necessary in today’s economy. In this paper I am going to discuss comparative advantage and it’s effect on globalization
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The Comparative Advantage Theory of Competition Author(s): Shelby D. Hunt and Robert M. Morgan Source: The Journal of Marketing‚ Vol. 59‚ No. 2 (Apr.‚ 1995)‚ pp. 1-15 Published by: American Marketing Association Stable URL: http://www.jstor.org/stable/1252069 . Accessed: 24/03/2011 04:09 Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at . http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR ’s Terms and Conditions of Use provides
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