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Poor Manufacturer Empty Poor Manufacturer

Post by yellow knife on Thu Oct 15, 2015 8:48 am

Like the thread Unfair-Tourism under tourism I dedicate this thread to talk about overall facts and updates relevant for Manufacturing sector.

Tile sales strong but Industry risks loosing protection
                            Mirror Business
                                 15th October 2015

The present construction boom and the thrust on exports will result in strong tile sales , but the local ceramic industry led by Royal Ceramic PLC faces the risk of losing the protection against imports, an equities brokerage report noted.

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Poor Manufacturer Empty Re: Poor Manufacturer

Post by yellow knife on Thu Oct 15, 2015 8:55 am

Like Plantation sector, Manufacturing sector needs encouragement, motivation from government as subsidies and protectionism.

All leading economists are against Monopolies and Protectionism.

Regarding Monopolies is better to study Chaebols of South Korea.

Regarding Protectionism one should understand that all developed nations protected their local manufacturers for decades or more. But once such manufacturers can stand alone earlier they invaded countries to sell their products but in today's context they send us economic books to read and understand that it is always better to open up economy.

=============================

Alexander Hamilton was the first Treasury Secretary
who even coined the term Infant Industry to get sympathetic view for protectionism.

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Post by yellow knife on Thu Oct 15, 2015 8:57 am

Alexander Hamilton (January 11, 1755 or 1757 – July 12, 1804) was a [You must be registered and logged in to see this link.], chief [You must be registered and logged in to see this link.] to General [You must be registered and logged in to see this link.], one of the most influential interpreters and promoters of the [You must be registered and logged in to see this link.], the founder of the nation's financial system, the founder of the [You must be registered and logged in to see this link.], the world's first voter-based political party, and the Father of the [You must be registered and logged in to see this link.]. As the first [You must be registered and logged in to see this link.], Hamilton was the primary author of the economic policies of the [You must be registered and logged in to see this link.]. Hamilton took the lead in the funding of the states' debts by the Federal government, the [You must be registered and logged in to see this link.], a system of tariffs, and friendly trade relations with Britain. He led the Federalist Party, created largely in support of his views; he was opposed by the [You must be registered and logged in to see this link.], led by [You must be registered and logged in to see this link.] and [You must be registered and logged in to see this link.], which despised Britain and feared that Hamilton's policies of a strong central government would weaken the American commitment to [You must be registered and logged in to see this link.].

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Poor Manufacturer Empty Re: Poor Manufacturer

Post by කිත්සිරි ද සිල්වා on Thu Oct 15, 2015 9:03 am

Thanks YK and nice point to ponder.
(Wishing if Fat R, Ra-Blue or Dr H would get a chance to read this thread). Very Happy

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Poor Manufacturer Empty Re: Poor Manufacturer

Post by Ethical Trader on Thu Oct 15, 2015 11:26 am

YK, infant industries need protection until they grow up but not indefinitly, because people should not be used unfairly & indefinitly to protect a few croney capitalists.
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Poor Manufacturer Empty Re: Poor Manufacturer

Post by yellow knife on Thu Oct 15, 2015 11:37 am

ET

The support you give for an infant should be removed when grows up. That is similar to how we groom a child.

Slowly they should be subject to harsh competition and to the test of Survival of the Fittest.

But what you often see is in developing countries manufacturers become lazy and fat will gather around their waist and spread throughout the body due to softness ensured by governments.

Japan's MITI and South Koreas Export Board pressurized these infants to soon fight in export market while protecting domestically.

Then only a country will grow.

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Post by Hybrid on Thu Oct 15, 2015 1:32 pm

That is why the Govt. grants Tax Holidays to important sectors any individual entities if there is new investment or increase in capacity which involves more employment and reduces dependency on imports.

now whether building materials is to be considered as a essential commodity is another question that requires a lot of debate.

What return or substantial benefits are there for the general public or finance ministry that necessitates protection?

Most of the infrastructure is for the tourism sector and housing problem. Can tiles or related porcelain products be considered an essential?

Is the taken into the "Basket of Goods" to arrive at the COL?

Who will most benefit from this protection?
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Poor Manufacturer Empty Re: Poor Manufacturer

Post by yellow knife on Thu Oct 15, 2015 1:40 pm

What is essential for average man now and reducing price of that is a political issue addressed during election time.

But at least the rest of 4 years should be for development. Upto now we are enjoying the Election Interval for almost ten months.

This is why countries with Dictators ( Saudi, UAE) or semi-democs ( Singapore, Israel, South Korea) or countries where political parties don't change after election (Botswana) win over others.

Anyway following chart of Dankotuwa shows what happen when manufacturers are not subsidized and forced to export simultaneously . It is the same reason I request investors to study South Korea

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Post by Ethical Trader on Thu Oct 15, 2015 3:07 pm

Very true, but the argument for subsidies often comes on the premis that 'the private sector is very efficient, therefore, one fine day they will be able to enhance productivity, bring down cost of production and be able to compete in the world market'. However, there is a fundamandal error in the premis. The government should concentrate on this issue too if they want to continue with subsidies. Otherwise it will only make cronies fatter and fatter while the poor remains poorer.

yellow knife wrote:ET

The support you give for an infant should be removed when grows up. That is similar to how we groom a child.

Slowly they should be subject to harsh competition and to the test of Survival of the Fittest.

But what you often see is in developing countries manufacturers become lazy and fat will gather around their waist and spread throughout the body due to softness ensured by governments.

Japan's MITI and South Koreas Export Board pressurized these infants to soon fight in export market while protecting domestically.

Then only a country will grow.
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Poor Manufacturer Empty Re: Poor Manufacturer

Post by yellow knife on Mon Oct 19, 2015 4:15 pm

How tabs are manufactured in China

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Poor Manufacturer Empty Re: Poor Manufacturer

Post by yellow knife on Mon Oct 19, 2015 5:03 pm

How apple mobile made


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