International Economics Essay Example | Topics and Well Written Essays - 1250 words

International Economics - Essay lessonSocial and pagan characteristics also impact the work techniques since the stock of trust among Indians facilitates the maintenance of socially held association that, in turn, allows the social organization of the economic activity of cover making. In India, values, ideas, human relationships and knowledge of rug making are transmitted from one generation to another as part of the robust Indian culture. Conversely, the rug drudgery process in the US is characterized by mechanization of most processes. 2This allows for large-scale production as a single cover producer uses massive amounts of fiber each day. Resource endowment, in the US, includes massive amounts of financial and intellectual capital, high entrepreneurship and robust technologies. Additionally, income levels are relatively large, enabling entrepreneurship and the establishment of broad companies that churn out massive quantities of carpets throughout the year. Essentially , resource endowment, in the US, including land, capital, labor and entrepreneurship, is quite prosperous. Social and cultural characteristics of the US that impact carpet production include an appreciation for formal training and education, which results in extremely skilled and specialized human capital essential for the production process. Question 2 Carpet production is one of Indias oldest industries, dating back to the Mughal Dynasty. However, carpet production centers on the individualistic skills and knowledge of a weaver rather than collective appreciation of carpet making acquired through formal education and training. callable to immediacy to furnishing product, several carpet manufacturing centers have developed across the country. Carpets produced in India are mostly exported since the Indian market for carpets is quite small as a result of the low purchasing capacity of topical anesthetic players. Presently, Indias carpet export is worth Rs.2600 crores while the loc al market size is approximately Rs.200 crores. 3The assiduity has high growth potential as exports increased by 42.23% between 2004 and 2007. 4However, the exertion is marred by challenges such as poor market channels, resulting in ignorance within the Indian market. 5On the other pass, the carpet industry in the US is highly developed. The industry shipped 1.969 billion square yards of carpet, in 2003 this was worth approximately $12 billion. Carpet shipments increased to 2.3 billion yards in 2004, demonstrating the massive potential inherent in the US carpet production industry. Presently, the US meets at least 45% of the worlds carpet needs. 6The US carpet industry is characterized by innovations and technological advances that allow for large-scale production of highly-priced goods. Technological progress is one of the basal reasons behind massive growth in the US carpet industry. The US carpet industry is highly organized, allowing for sufficient knowledge in the domestic m arket. 7 As a consequence, the US effectively meets at least 90% of its domestic carpet needs. Question 3 Latent demand for carpets in the ground forces pushes the country to become a primary importer of carpet despite being an efficient carpet producer. This is because carpet production, in the US, has been unable to offer complete satisfaction to all domestic needs and wants, resulting in a gap between what is available and desirable. The local US market has a high desirability for hand woven, Indian carpets, which are considered stylish and sophisticated. Conversely,