We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>

Looking For Something at vustudents.ning.com? Click Here to Search

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More


Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion

How to Add New Discussion in Study Group ? Step By Step Guide Click Here.

Pakistan’s automobile industry is playing a leading role as large scale manufacturing sector of Pakistan that serves as backbone of the economy and has immense potential for growth.

Last year, federal government has announced relaxation in the import policy for import of used cars under Transfer of Residence, Gift Scheme and Personal Baggage Scheme. Under this scheme, five years old models can be imported at less custom duties.  Moreover, depreciation allowance on these imported used vehicles is also available up to four years.

Such policies of the government strongly affect the businesses so being the student of business education; you are required to evaluate the effects of relaxed import policy regarding import of used cars on local automobile industry (identify at least three (03) effects) and then on economy (identify at least two (02) effects).

 

What will be solution...?????????????????

+ How to Follow the New Added Discussions at Your Mail Address?

+ How to Join Subject Study Groups & Get Helping Material?

+ How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators?

+ VU Students Reserves The Right to Delete Your Profile, If?


See Your Saved Posts Timeline

Views: 3338

.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)

Replies to This Discussion

NO BODY KNOWS ???

Question is that Y govt impose tax....????
1). To protect fledgling domestic industries from foreign competition.
2). To protect aging and inefficient domestic industries from foreign competition.
3). To protect domestic producers from dumping by foreign companies or governments. Dumping occurs when a foreign company charges a price in the domestic market which is "too low". In most instances "too low" is generally understood to be a price which is lower in a foreign market than the price in the domestic market. In other instances "too low" means a price which is below cost, so the producer is losing money.

The cost of tariffs to the economy is not trivial. The World Bank estimates that if all barriers to trade such as tariffs were eliminated, the global economy would expand by 830 billion dollars by 2015. The economy effect of tariffs can be broken down into two components:

  • The impact to the country which has a tariff imposed on it.
  • The impact to the country imposing the tariff.

In almost all instances the tariff causes a net loss to the economies of both the country imposing the tariff and the country the tariff is imposed on.

Impact of the economy of a country with the tariff imposed on it.

It is easy to see why a foreign tariff hurts the economy of a country. A foreign tariff raises the costs of domestic producers which causes them to sell less in those foreign markets. In the case of the softwood lumber dispute, it is estimated that recent American tariffs have cost Canadian lumber producers 1.5 billion Canadian dollars. Producers cut production due to this reduction in demand which causes jobs to be lost. These job losses impact other industries as the demand for consumer products decreases because of the reduced employment level. Foreign tariffs, along with other forms of market restrictions, cause a decline in the economic health of a nation.

 

3 EFFECT ON LOCAL AUTOMOBILE COMPANY:

  1. In general: If import duty reduce then economy will destroy. Because menufacturing unit will close. People purchase imported items on low price and pakistanani goods are not sold mean company closed.

Explanation: The levying of tariffs is often highly politicized. The possibility of increased competition from imported goods can threaten domestic industries. These domestic companies may fire workers or shift production abroad to cut costs, which means higher unemployment and a less happy electorate. 


    2). A government may levy a tariff on products that it feels could endanger its population. For example, South Korea may place a tariff on imported beef from the United States if it thinks that the goods could be tainted with disease.

 

    3). The use of tariffs to protect infant industries can be seen by the Import Substitution Industrialization (ISI) strategy employed by many developing nations. The government of a developing economy will levy tariffs on imported goods in industries in which it wants to foster growth.

 

2 EFFECT ON ECONOMY:

  1. Import duty is a income of Pakistan Govt. When relaxation is made on the import duty. Its mean income of the govt. will automatically decrease.
  2. Purchasing power of the economy will automatically increase. Because cast will decrease. For example: If imort duty will 20% then cost will be 1,000 but after relation like 10% in import duty. Cost will autiomaticaly decrease like 800.

 

Solution GDB MGT211: MGT211 Introduction To Business

The Following points to be considered, when Government has announced relaxation in the import policy for import of used cars.


       The sales of local cars dropped down suddenly in the local market in automobile industries which have given tough time for local automobile industry.

       The import of used cars not only decrease share of the local automobile industry but also had a bad impact on the local engineering industry. This will effect to shut down of medium and small sized business of automobile industries.

       If the age of used cars was not relaxed to five years for imports, The Trade industries also can growth with its positive impacts on localization and employment opportunities. The situation is decline now with the increase of imports of used cars which is showing to cut jobs and production in local automobile industries.

       Import of cars has a negative impact on the economy as there is short revenue collection. A used imported completely built unit only contributes half as much as a vehicle manufactured in the country by local and allied auto mobile industries which have thousand of employees whose jobs are now at risk.

       Local auto mobile industries are sheltered everywhere in the world so in Pakistan should be not exception.

        The government should review its policy on imported cars in the high interest of the local economy and protect the local automobile industry from complete damage and save the jobs of thousands of workers.


While, with some important exceptions, Local or domestic taxes on sales, excise, and income withholding taxes should be apply at the same rate on imported products and may not generally separate against imports.




Further discussion on the topic as below:-


EXTERNAL AND POLITICAL ENVIRONMENTS AND ITS INFLUENCE


Everything outside from the business organization might be effect on it and those things are beyond to a organization and not controllable. More than ever we discussed as following important External & Political factors which can be effect on the growth of an organization and its profit margin. Every business organization should consider these things while starting of any business OR during run of business.




Economic Factors

Economic factors are one of the influences of a business which are beyond from one company. Economic factors performing vital rule in business.
We can identify a country Per capital income of a person whether it is less or high. Total income of a country divided by total population of a country. A growing economy provides us more opportunities for businesses to make profits, so businesses should consider this factor while running business.

Political Factors and Legal Factors of Government

All business controlled by the Government policies and it should high influence on a business. Specially, political factors include of Taxes, Duty, Policies, law of labour, and restriction of trades. In political factors also include goods and services which government want to provide or may be not want to provide also. Changes of law and regulations of a country a businessmen should be careful that these changes also influence of his business and strategies. Businesses should understand the relevant laws relating to companies and competitions.

Economic Growth Factor

Progress of economic growth also a one of major part of external factor. Its also influence to an organization. If speed of progress is high in a country then investment also will be increase.

Exchange Rate

Exchange rate is the rate of currency of a country to change with another currency. These factors are important influence on how businesses run and take the decisions. Exchange rate affect a business cost of investment and how to extent or expend the business. Exchange rates affect the costs of import and export of goods and its demand and supply. Investors of other countries should keep this factor for investment in business.


Distribution of Population

A businessman should consider distribution of population and divide into Males and Females. How many females are working and how many only household because priority of working ladies should be different life style should be different. So according to division of population age group we can assign our products in genders.


Natural Factors

God Act! Also beyond a firm which is not controllable for example, Storms, Earthquakes, change of climate like winter and summer, so it’s also influenc

Excellent....its true answer

2nd GDB OF MGT211
Effects of relaxed import policy regarding import of used cars on local automobile industry
1. The import of used cars not only ate up the share of local automobile industry but also had an adverse impact on local engineering industry, resulting in the closure of medium and small-sized business units.
2. The situation will worsening with the increase in import of used cars, which will slow down the localisation process and forced the vending industry to slash their production and cut jobs.
3. But as a positive impact Used cars have more choice to the consumers to buy better quality cars at cheaper price.
Effects on economy
1. It is said that the imported cars have a negative impact on the economy as it is resulting in less revenue collection as a used imported completely built unit (CBU) only contributes as much as half of the vehicle manufactured in the country by local OEMs 
2. Another economy effect is that the relaxation in age of importable used cars has played havoc and many downstream units of vendors have either been closed or have reduced employment. It will lead to massive unemployment.
The local industries are protected everywhere in the world for strengthening local economy so Pakistan should be no exception, they added urging that the government should review its policy of imported cars in the greater interest of local economy, protecting local automobile industry from complete devastation and saving jobs of thousands of workers.
So 
If the age of used cars was not relaxed to five years for imports, the vending industry could have witnessed a growth for sustainable basis coupled with its positive impacts on localization and employment opportunities.

Thanks bro, i really appriciate

           
Effects of relaxed import policy regarding import of used cars on local automobile industry
1. The import of used cars not only ate up the share of local automobile industry but also had an adverse impact on local engineering industry, resulting in the closure of medium and small-sized business units.
2. The situation will worsening with the increase in import of used cars, which will slow down the localisation process and forced the vending industry to slash their production and cut jobs.
3. But as a positive impact Used cars have more choice to the consumers to buy better quality cars at cheaper price.
Effects on economy
1. It is said that the imported cars have a negative impact on the economy as it is resulting in less revenue collection as a used imported completely built unit (CBU) only contributes as much as half of the vehicle manufactured in the country by local OEMs
2. Another economy effect is that the relaxation in age of importable used cars has played havoc and many downstream units of vendors have either been closed or have reduced employment. It will lead to massive unemployment.
The local industries are protected everywhere in the world for strengthening local economy so Pakistan should be no exception, they added urging that the government should review its policy of imported cars in the greater interest of local economy, protecting local automobile industry from complete devastation and saving jobs of thousands of workers.
So
If the age of used cars was not relaxed to five years for imports, the vending industry could have witnessed a growth for sustainable basis coupled with its positive impacts on localization and employment opportunities.

The external environment

A business converts inputs into outputs in order to make a profit. However, the business does not exist in a vacuum, it exists within an external environment consisting of the actions of other players who are outside the business. The external environment consists of:

  • competitors

  • the economic system

  • the social system

  • the monetary system

  • the political/legal system

  • the environmental system.



Competitors actions affect the ability of the business to make profits, because competitors will continually seek to gain an advantage over each other, by differentiating their product and service, and by seeking to provide better value for money.
The economic system is the organisation of the economy to allocate scarce resources. The economy tends to go through periods of faster and slower growth. Businesses prosper when the economy is booming and living standards are rising.
The social system is the fabric of ideas, attitudes and behavior patterns that are involved in human relationships. In particular businesses are influenced by consumer attitudes and behaviours which depend on such factors as the age structure of the population, and the nature of work and leisure.
The monetary system facilitates business exchange. Monetary activity is based around earning, spending, saving and borrowing. Money has been likened to the oil that lubricates the wheels of commerce. Monetary activity involves businesses in a web of relationships involving financial institutions (e.g. banks and building societies), creditors, debtors, customers and suppliers. A key monetary influence for business is the interest rate. Higher interest rates increase business costs and act as a break on spending in the economy.
The political/legal system creates the rules and frameworks within which business operates. Government policy supports and encourages some business activities e.g. enterprise, while discouraging others e.g the creation of pollution.
The environmental system is the natural system in which life takes place. Increasingly businesses have become aware of the relationship between their economic activity i.e. making goods and services for profits and the effects that this has on the environmental system
.

its external environmental factors not answer of said query

What is Political-legal Environment?

Political-legal Environment is a collection of factors, such as the general state of politics, the degree of politicalisation of business and economic issues, the level of political morality, the law and order situation, political stability, the political ideology and practices of the ruling party, the purposefulness and efficiency of governmental agencies, the extent and nature of governmental intervention in the economy and the industry, Government policies (fiscal, monetary, industrial, labour and export-import policies), specific legal enactments and framework in which the enterprise has to function and the degree of effectiveness with which they are implemented, public attitude towards business in general and the enterprise in particular, and so on.

There are three important elements in political-legal environment. These elements are as follows:

i) Government:

A business is highly guided and controlled by government policy. Hence the type of government running a country is a powerful influence on any business; a strategist has to consider the changes in the regulatory framework and their impact on the business.

Taxes and duties are other critical areas that may be levied and that affect the business. For example, introduction of FBT (Fringe Benefits Tax) has a major impact on the business.

ii) Legal:

Business organisations prefer to operate in a country where there is a sound legal system. However, in any country, businesses must have a good working knowledge of the major laws protecting consumers, competitions and organisations. Businesses must understand the relevant laws relating to companies, competition, intellectual property, foreign exchange, labour, and so on.

iii) Political:

Apart from Govt, and Legal factors there are several other political pressures that influence and limit organisations. Political uncertainty, political movements against certain products, service and organisations, politicalisation of trade unions, etc., put a lot of pressure on business organisations.

How does the political and legal environment impact a small business?

Answer

The political environment of business is one that deals with the concepts of politics and the way they influence how business operate. Its key to understand laws are the outcome of the political process, therefore they are fundamentally a core issue concerning business managers. Specific strategies for managers can take are having a proactive approach (one that improves performance in an industry and avoids political attacks and government intervention). Businesses also need to focus on the areas of financing, lobbying, and building. Lastly, never forget that more and more there is continued personal and legal accountability for managers in the fall out of Enron and the global recession of 2008-present. As for small businesses this environment is the same as a larger company, except small businesses tend to have smaller and less lobbying power. In this cases small businesses should seek to build in their industries and build PAC's if possible. The impact on smaller can be quite large and even more impactful then larger The reason for this is the smaller they have less power in the political process, unless they coalition build and configure a reasonable lobbying strategy.

RSS

Latest Activity

+ ! ! ! ! ! branded billi ! ! + replied to + ! ! ! ! ! branded billi ! ! +'s discussion azaadi mubarak
3 minutes ago
Abdul Hadi replied to + ! ! ! ! ! branded billi ! ! +'s discussion azaadi mubarak
43 minutes ago
+ ! ! ! ! ! branded billi ! ! + commented on M r . H a a D i . . . ! ! !'s blog post ACHA SORRY...!!!
44 minutes ago
+ ! ! ! ! ! branded billi ! ! + posted a discussion
53 minutes ago
++*S͓̽o͓̽m͓̽i͓̽ V͓̽i͓̽r͓̽k͓̽*++ updated their profile
1 hour ago
Mani Siddiqui BS VIII posted a status
"" ایک سلجھا ہوا انسان۔ ۔ بلا وجہ کڑوے۔ ۔ اور تلخ لہجہ میں بات نہیں کرتا۔ ۔ اس کے پیچھے ایک کہانی ہوتی ہے"
1 hour ago
乇メ-丂イひり3刀イ. liked zohaib iftikhar's blog post ...* DOST ...*
2 hours ago
+ ! ! ! ! ! ! ! Captain+ liked Isha Chuhdary's discussion Bari
4 hours ago
+ ! ! ! ! ! ! ! Captain+ liked Isha Chuhdary's discussion Bari
4 hours ago
+ ! ! ! ! ! ! ! Captain+ liked +Аүмаи+'s discussion ذرا ذرا سے منافق تو سارے ھوتے ہیں
4 hours ago
+ ! ! ! ! ! ! ! Captain+ liked +++A++R+++'s discussion رشتے
4 hours ago
+ ! ! ! ! ! ! ! Captain+ liked Mani Siddiqui BS VIII's discussion Allah o Akbar| Pakistan Air Force Song |27 Feb 2020
4 hours ago

© 2020   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service

.