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Should producers such as Ravi stop production because their cost of production is higher compared to producers in other countries? What do you think?
Due to high cost of production, giving up on the competition and stopping the production is not a reasonable option. Apart from stopping the production, Ravi should do the following things to stay in the international competition-
(i) To work harder himself and to motivate his employees to work harder.
(ii) To improve the quality of our production and reduce the cost of production by using best grade raw material and latest technology,
(iii) To expand your industrial unit by taking loan at low interest rate,
(iv) entering into partnership with multinational companies and
(v) To expand our market by adopting the latest techniques of sales promotion.
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