WAR-rior
SENIOR MEMBER
- Joined
- Nov 26, 2010
- Messages
- 4,860
- Reaction score
- -15
- Country
- Location
The manufacturing costs in the EU and US are much higher than Pakistan, giving us a trade advantage. The same is not true with India. In fact it's worse, since Indians companies enjoy economies of scale.
Free trade with India would ruin Pakistani industries.
Moreover, it would stifle any chance of developing our own capabilities if the market is flooded with inexpensive Indian products.
Dude, economies of scale is dependent on quantity but only theoretically, practically its quantity + quality.
dont u think a rising middle class in india wud care bout basic quality need. if u are sure that pakistani rice is of better quality the it shud be an advantage for u by opening up markets. coz then it wud be a head to head competition between both rice and better quality will win.
Also, an open free market wud increase the no of sellers from both sides. so economies of scale will hold true for both indian and pakistani vendors......
plz analyse !
Thanks !