Advantages Of Small Scale Industry

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Small Scale Producers contribute significantly to Employment, as well as exports, both in the developed world, as well as in the third world nations. Globalisation, or technically Free Trade, presents both challenges and opportunities to this sector. Challenges, to name a few, would be threat of Firms with greater access to Capital, using capital intensive technologies and exploiting economies of scale, as well as changes in preferences of Consumers. Opportunities are off course contesting foreign lands and accessing greater revenue. In the sections that Follow we shall explain the three strategies, and explore the variation in strategies and their permutations in a small product. “Small Product” is defined as a product of sufficient simplicity. It is likely to have few features and characteristics to consider. Small Products thus cover not only much of small scale industry (with exception for example, Electronics) but also factory based industries, which may not be small scale. For example, Campa Cola and Lehar were little known erstwhile small scale soft beverage manufacturer, The Coca Cola Company is a production line specialised large scale company. Apple Inc’s Products for example would not be a small products, having a large number of features. Since this spectrum covers potential competitors, similar products competing in absence of trade regulations, it is logical that they be compared under the same basket. We’d conclude by considering the case of a small scale
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