. Self-reliance means any country or an organization that has a comparative adva
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Question
. Self-reliance means any country or an organization that has a comparative advantage due to the abundance of resources in their parent country or organization. They do not depend on other countries or suppliers to import the required resources or raw materials. Other areas viz., Petroleum products in Gulf countries where it is rich in crude oil availability, China due to its cost efficient labor workforce, India due to it availability of IT workforce, the US for its abundance of natural resource etc.,
6. A textile company located in the right geography where there is abundance of water and farm fields where they get cotton, An automobile manufacturing unit that gets iron ore, related auto parts in the near by locality without depending externally, A dairy product company located near a farm land where abundant supply of milk is available etc., are the good examples of self reliance or import substitution.
7. No! Self-reliance doesn't mean there is no trade. Trade in common sense buying and selling of goods and services. The meaning of self-reliance doesn't mean there are no sales of goods. the fundamental requirement of raw materials that produce the product is taken care by the company without import dependency.
8. The International Business that governs globalization and liberalization policies that encourage international trade with import and export of foreign goods make it difficult for businesses to stay local with out export of their labor or resources. Several countries currently depend on import and export, outsourcing due to labor arbitrage, Franchising, joint venture, mergers & acquisitions, off shoring, and employee leasing. The significance of off shoring is associated cost of production where it is off shored to a country where the cost of production is cheaper than parent country. The tax advantage is another big relief for certain countries when they choose to offshore their production. Monitoring and control aspect is also a huge advantage as the quality, timeliness, and production aspects are managed by the offshore team and the parent organization has to invest very minimal time for the key performance indicators of the product.
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Explanation / Answer
Does self reliance mean no trade?
In what ways do current laws/regulations make it difficult for businesses to stay local (not export) their labor/resources/businesses? Be Specific.
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