Wednesday 15 April 2015

comparative advantage

comparative advantage

youthful spirited Muslim  lady all covered sat next to me in the bus -journey to city form airport.
over heard conversation with top customer officer .It was the encounter she had with the customs and the way she managed to escape normal taxes.
As she was relating an  unknown officer at the counter wanted me to go to the table meaning go and pay for the goods she war carrying through-- nothing to declare-.Goods were piles of clothing nicely packed.

But she remained  at the counter with a smile till he finished with other passengers. Then passed with normal handout. 

When she settled down to enjoy the ride along the breathtaking see front highway i intervened.
What are you doing. she replied business. what business  textile . so your bring form India and sell - yes- No duty ? little How?
well it works like this

main street top shops have interior sources of textile in India. They send design etc and order online then they are brought to Chennai  for pressing. 100 units pressed to make them appear ten. these shops have 100s of women like the one seated next  to me to bring them In as personal, luggage.
these women as she said travel three times a weak each trip she make about 20000 after all expenses.All what she is doing is to brig and give the shops who pay the fee for transport form India Chennai.

for shops  it is a huge advantage over other shops elsewhere as
1- sources are from inside India direct Hence prices lowest possible.
2- totally avoid taxes
3- transport minimum as they come as personal luggage.
Stock in plenty as the Carriers are more than enough.

So now-- try opening a shop in  main street after market analysis  without any of these comparative unbeatable advantages and buying from local or conventional imports/ traders and try to be in business- Impossible
what purpose of the MBA s in marketing 

real life

can you see what others cant see !

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