Ancillary industries maintenance and repair recycling

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- Ancillary Industries: maintenance and repair, recycling, security, and business services. - Loan money is used to provide infrastructure for outside businesses. - Problems with International Development: Uneven resource distribution (lack of resources and inelastic demand) - Development through Self-Sufficiency: “Balanced Growth” Investment should be evenly distributed Reduced poverty (primary goal) Fledging businesses (isolated from competitors) Trade Barriers ----- EX: Japan requires advertisements to be in native language 1. Taxes on imports 2. Quotes on imports 3. Licensing restrictions Tied with India, China, and most African and Eastern European countries - India’s Self Sufficiency: Trade Barriers used (all three) Disincentives for exports Government control of new products, modernization (putting robots in manufacturing plants and eliminating number of people), production levels, prices, and workforce. Subsidies for troubled businesses ----- EX: cheaper electricity - Self Sufficiency Problems:
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Inefficiency (guaranteed sales and prices, lack of innovation, no incentive for efficiency, long waiting lists) Large Bureaucracy (regular middle-class people getting paid for million dollar deals)- leads to abuse/corruption and black markets - Advantages of Global Assembly Line: 1. Maximize economies of scale (If produced in mass quantity, price will come down.) 2. Capitalizes on the full range of geographic variations in cost (EX: laborers (vary by region) and cost of raw materials and cost of taxes (spreading out will shrink weaknesses).) 3. Reduction in vulnerability to disturbances 4. Access to foreign markets (need to see continued growth/staying ahead of inflation and the need to constantly find new consumers) - Fordism: principles for mass production based on assembly-line techniques, scientific management, mass consumption based on higher wages, and sophisticated advertising techniques. - Neofordism: principles in which the logic of mass production coupled with mass consumption is modified by the addition of more flexible production, distribution, and marketing systems.
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