Immediate economic impact of the Mindonian government’s decision in 1977 to modernize the country’s shoe-making industryS

Aliyev Rustem

Immediate economic impact of the Mindonian government’s decision in 1977 to modernize the country’s shoe-making industryS

 

Plan

Introduction

Social consequences

Economic consequences

Conclusion

 

 

According to given topic background SMindonia is a small developing country in the Indian Ocean with a general Sshoe-making industry. Until 1977, all shoes in this country were made by self-empolyed Sshoemakers, and were made of leather. About 8,000 people were involved in these industries of which 5000 were in shoemakers Sand 3000 in support industries. However, early in 1977, as a result of a trade agreement which committed the Mindonian government to spending investment funds on US technology, two plastic-injection moulding machines were imported from the USA at a cost of $60000 in order to make plastic shoes. The PVC for the shoes also had to be imported. SIn this essay will be analyzed social and economic consequences of adopted decision.SS

First of all, we take social consequences to our consideration. Prior to startupS plastic shoe factory in 1977 according to figure SS4.1 shoemaking Sindustry had stable employment and more than that Sin 1976 there was a gradual increase of the indicatorS. But after the startup plastic shoeS factory in period S1977 and 1979 we can see the dramatic fallS number Sof workers in shoemakers SSand support industries which made the market decline of employment in these industries to S3/4S. Whereas in the plastic shoe factory employment in startup, and until 1979 remained unchanged in Sthe 300-400 employees. As a result with the remaining employed 2,400 people in the industry, we have after 3 years of 5600 unemployed people. That demonstrates Sin the fig 4.3 where from 1973 to 1977S, there was steady Sgrowth in the percentage of the unemployed with a value of 2% to 6%, in despite in S1978 this indicator amounted to 16% and in 1979 to 18%.

If we consider the issue in economic termsS the decision to built SplasticS shoe factory also had a bad influence on the economy of Mindonia. SoS the price of leather shoes until a new competitor in the form of plastic shoes in 1977 showS strong smooth growth approximately $ 1 Sa year. That under the law of supply and demand, the industry had a significant demand from customers for a fixed amount of the goods production price continued to grow. In contrast plastic shoes had inversely proportional indicators with an annual fall in the price by $ 1, which may be due to the low demand due to the global competition for this type of product and not surprising that the price of leather shoes continued to rise after 1977, given the sharp decline in production and as a consequence of the small supply that by itself created a demand for the product. SConsidering the economic impact further the plastic shoe factory entry refer to the table Swhich clearly shows a significant increase of importsS. In 1974 imports amounted to 0,3 millions of dollars in 1979 it indicator grew by $ 4 million and showS in total 4,3 millions of dollars. In summary Mindonia have reduction in price production of plastic shoes and consequently deterioration in profitability entered factory and increaseS its imports.

In conclusion we can say that the government pursued to reach a new high-tech market in the form of automated plant shoes without thinking about the consequences caused serious damage to the industry for the production of leather footwear in the form of job losses and production volume. As considering that the factory was not based on the know-how technology Sand that sector hasS a strong competitive, Sproduct prices began to fall, when the volume of imported goods purchased in the form of PVC continued, as a result increasing overall imports. Altogether we can say that this decision was taken hurriedly without prior study of the internal and external market which led to these consequences.

Don’t change the question

Be more specific.  What’s the reference?

What do you mean by this?

spelling

shoemakers what?

Are there all your own words?  If not, you could have problems with plagiarism.  I also think you need to provide a reference as to where this information came from.

A new topic requires a new paragraph

Be more specific

Articles

Nouns and proper nouns

Where is it?

Articles

A clause should be enclosed in commas

Explain

…of the…

Articles

“fall in”

Articles

articles

possessives

“by”

Write this in words rather than numbers

“with”

Passive formation

Both ends of the clause should be enclosed in commas

Articles

Look up “despite”  in the dictionary, I think you will find it is the wrong word.

Comma needed after this word

tense

articles

Don’t start a sentence with a conjunction

Tense

Where do the graphs show this and what does it mean?

Unless you have evidence for this, I suggest that you should be more cautious in your language.

Which one?

Does it?  Imports of what?

Passive form

Tense

Evidence?

Tense

Comma not needed