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 Question
The Case:

Over all business horizons of Pakistan are going to collapse due to adverse effects of energy crisis. Punjab seems to be more adversely effected as compared to other provinces because of disastrous impacts of persistent gas closure and electricity load shedding on the production and exports of textile industry. As recently 219 Pakistani companies have exhibited their products in International textile exhibition held in Frankfurt, Germany, but faced an insignificant business of amounting $3 million only, rather than of $100 million in the past. It happened due to inability of Pakistani exporters to meet the shipment deadlines because of delay in production process caused by energy crisis.

Likewise, more than 500 textile units and around 26 flagships have shut down their businesses due to huge losses, only in Faisalabad. Mega industrial groups moved towards other countries like Bangladesh and Malaysia along with their capital in order to open industrial units from Pakistan. Due to indefinite shutdown, textile exports have shrunk to $159.5 million and $193.9 million in October and November respectively, from $225 million in December of last year. Interrupted gas supply would lead to further decline in exports, huge labor layoffs, decline in the Government revenue and eventually slow down the country’s economic growth. Trade bodies like PTEA and APTMA have alarmed the Government repeatedly to overcome gas crisis because textile is the sole sector of Pakistan exports. And if Government doesn’t explore and execute gas reserves then trade deficit will be widened further by hampering economic growth. The SBP also pinpointed the fact that the government did not address the issue of energy crisis and instead introduced costly rental power projects which eventually proved flood gate of corruption in Pakistan.



Requirement:

Being a student of economics, find out which theory of profit is best implied on this scenario (Textile industry)? How Government can save the industry and exports of Pakistan from devastating effects of energy crisis, Discuss?

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Replies to This Discussion

Comments Plz.........................

Please Discuss here about this GDB.Thanks

Our main purpose here discussion not just Solution

 

Discussion hi kr lain koi pahal tu kray na.................

in my point of view this theory applies on this situation if not then comment plz

Clark’s Dynamic Theory of Profit) 

ECO404 GDB no 1 helping material NOV 2012

for all help regarding GDB visit links given below and see frictional and disequilibrium theory of profit

1. http://books.google.com.pk/books?id=...epage&q&f=true

2. http://books.google.com.pk/books?id=...e&q=frictional theory of profit&f=false

3. http://books.google.com.pk/books?id=...disequilibrium theory of profit&f=true

 

To encourage exports, governments step in and assist small businesses in a variety of ways. One being helping increase the sales of products that are currently available for export. This is called export promotion or export development and is typically carried out by a Trade Promotion Organization (TPO). Not all countries have this service due to internal limitations.

To find out if your country has a program available, conduct an Internet search with the key words, “trade promotion organizations” ___________________ and insert your country name after it. For example, trade promotion organizations Ireland or trade promotion organizations Turkey. You could also try, “export promotion agencies” _____________ to see what other available resources come up.

Established by a government, the purpose of a TPO is to encourage, promote and develop trade with other countries. A TPO can also conduct trade missions and bring foreign buyers to a local-based trade show.

In short, a TPO serves as an adviser of sorts to the government on international trade and related matters.

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