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8/8/2019 Vipin's Ppt on Economics
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8/8/2019 Vipin's Ppt on Economics
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THE IMPACT OF TECHNOLOGICAL
CHANGE Tech change may involve new products,
improvement or cost reductions for existing
products or better ways of managing theoperations of a business.
Electronic co. must be competitive in using the
new digital technologies for their audio and
video equipment. Automobiles manufacturers
survive only if they keep cost down by using
advanced robotics for assembly.
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Tech change, productivity and
economic growth Tech change allow the firm to produce the same
rate of output using fewer input
Tech change may be input natural labor saving orcapital saving
Labor productivity is the ratio of output to laborinput
Total factor productivity compares change inoutput to changes in both capital and labor
The single most important source of economicgrowth in the U.S. has been tech change
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Requirement for
successfulinnovation Innovation involves developing useful products.Diffusion is the process whereby new product
become widely available
Often the key to successful product innovation canbe marketing and the ability to provide service.
Profitable process innovation involves secrecy and
being able to exploit economies of scale
Innovation is more likely to be successful if the firm
stays with in its core competencies
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FOR EX. RCCola was the first company to sell
cola drinks in a can and also the first to
introduce a diet cola, butCoca-Cola and Pepsi-Cola responded so quickly that the smaller firm
never gained any significant advantage from its
innovation.
8/8/2019 Vipin's Ppt on Economics
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LOCATING THE FIRM IN A GLOBAL
ECONOMY: INTRODUCTION Locating a business in right place is important
because the cost of moving output and people
across space is significant. For ex. The best site for a retail store generally
is one that is in close proximity to a large no. of
people who are the potential customer of the
store.
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8/8/2019 Vipin's Ppt on Economics
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Ranking industrial location
determinants Percentage of Executives surveyedlocation factors who rated these factors accordingto importance
Geographic location 64
Availability of transportation 54
Stable state govt. 38
Skilled Labor availability 32
Raw material availability 28
Tax exemptions 27
Unskilled labor availability 22
Water supply 17
Availability of rail transportation 16{Source: M.L. Goldstein, choosing the Right Site, Industry Week
(Apr.16, 1985)}
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LOCATING THE FIRM IN GLOBAL
ECONOMY Many large U.S. and foreign firms now
produce and sell a significant share of their
output in other countries. This is accomplishedby setting up subsidiaries in foreign countries,
entering into joint ventureswith producers in
those countries, or by licensing foreign firms to
produce and market their products.
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IMPACT OF TECHNOLOGICAL
CHANGE ON AUTOMOBILE SECTOR
8/8/2019 Vipin's Ppt on Economics
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Maruti Suzuki India ltd. Is a publicly listedautomaker in India. It is a leading four-wheelerautomobile manufacturer in south Asia. Suzukimotor corporation of Japan holds a majority stakein the company.
Maruti Suzuki Plant in Gurgaon
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Technological changes: Authorized service stations: Maruti has 2628
listed authorized service stations and 30 expressservice stations on 30 highways across India.
Maruti insurance: National insurance co., Bajajallianz, New India assurance and RoyalSundaram.
Maruti finance: Maruti tied up with ABN Amro
Bank, HDFC bank, ICICI Ltd., Kotak Mahindra,Standard chartered bank, andSundaram to startthis venture including its strategic partners in carfinance.
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8/8/2019 Vipin's Ppt on Economics
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Maruti DrivingSchool:
Maruti Exports:Maruti Exports Ltd. A maruti driving school in chennai
is the subsidiary ofMaruti Udyog ltd.
With its major focus on export and it
does not operate in the domesticIndian market. Angola, Benin, Europe,
Kenya, Sri lanka, Uganda, Chile, Costa
rice, and El Salvador are some of the
markets served byMaruti Exports.
Maruti suzuki has helped indiaemerge as the fourth largest
exporter of automobiles in asia
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IMPACT OF TECHNOLOGICAL
CHANGE ON BANKING SECTOR
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IMPACT OF TECHNOLOGICAL
CHANGE ON BANKING (COND..)
Debit & Credit card
Branch less bankingATM Services
E-Payment service
E-Bank transaction Internet banking
Mobile banking
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