Thursday, November 12, 2009

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    • -Dr Bharat Jhunjhunwala
    toy phone
    • The challenge of large-scale production has to be dealt with differently because this is basically sustainable. The way forward is to distinguish between the high-end customized market and the low-end standardized market.
    • We can face this problem either by imposing import taxes on Chinese goods and protecting our factories which have smaller scale of production and cannot compete. Alternatively we can turn our small scale factories towards the high-end market. This high-end market is available in China as well. It seems to me that we must allow Chinese goods to enter our low-end market but balance this by capturing the high-end market in China. Our workers will be doubly benefited from such policy. They will get cheap standardized goods from China and also employment in the manufacture of high-end goods for export to that country.