Productivity is the ratio of outputs attained as result of processing to theinputs given for production to. There is a direct relation between the productivity and growth of a nation. High productivity creates a secure and safe condition for the local manufacturers in competing with foreign producers. Higher productivity helps to increase wages by increasing the profits which helps to gain competitive edge over the rivals and help to improve the market share. To determine: The importance of high productivity for a nation.

Question

Want to see the full answer?

Answer 1

Question

Chapter 2.7, Problem 1.1RQ

Summary Introduction

Summary:

Productivity is the ratio of outputs attained as result of processing to theinputs given for production to. There is a direct relation between the productivity and growth of a nation. High productivity creates a secure and safe condition for the local manufacturers in competing with foreign producers.

Higher productivity helps to increase wages by increasing the profits which helps to gain competitive edge over the rivals and help to improve the market share.

To determine: The importance of high productivity for a nation.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

It is sometimes easy to overlook the importance of productivity. National figures are often reported in the media. They may seem to be ho-hum; there's nothing glamorous about them to get our attention. But make no mistake; they are key economic indicators—barometers, if you will, that affect everybody. How? High productivity and high standard of living go hand-in-hand. If a country becomes more service-based, as the United States has become, some (but not all) high-productivity manufacturing jobs are replaced by lower-productivity service jobs. That makes it more difficult to support a high standard of living. Productivity levels are also important for industries and companies. For companies, a higher productivity relative to their competitors gives them a competitive advantage in the marketplace. With a higher productivity, they can afford to undercut competitors' prices to gain market share or charge the same prices but realize greater profits! For an industry, higher relative…

It is sometimes easy to overlook the importance of productivity. National figures are often reported in the media. They may seem to be ho-hum; there's nothing glamorous about them to get our attention. But make no mistake; they are key economic indicators barometers, if you will, that affect everybody. How? High productivity and high standard of living go hand-in-hand. If a country becomes more service-based, as the United States has become, some (but not all) high-productivity manufacturing jobs are replaced by lower-productivity service jobs. That makes it more difficult to support a high standard of living. Productivity levels are also important for industries and companies. For companies, a higher productivity relative to their competitors gives them a competitive advantage in the marketplace. With a higher productivity, they can afford to undercut competitors' prices to gain market share or charge the same prices but realize greater profits! For an industry, higher relative…

Runaway is a manufacturer of athletic shoes, bags, and sportswear in Europe. It has been maintaining an image of performance indeed, moreover, it is widely regarded as socially responsible. You are the Operations Manager for this organization. Recently you found the costs are increasing. Traditionally, the products have been manufactured in Asian countries such as India, China, Indonesia, South Korea. Though the ease of doing business in those countries has improved, the wage rates have been rising. For example, athletic shoes can be produced in China that were produced in Indonesia. The labour-cost differential between your current suppliers and a contractor who will get the shoes manufactured in China is $1 per pair. Projected next year sales is 10 million pairs. There is no doubt that the Chinese government engages in restriction, remains authoritarian, and is a long way from democracy. What would you do now?Scenario 1: Produce in China. However, you would face potential damage to…