Page 9 - Cost_Competitiveness
P. 9
9
The Institute of Cost Accountants of India
nterview
Cost Competitiveness -
The key mantra of Business Sustainability
CMA Subir Chaki
Wholetime Director
McNally Sayaji Engineering Limited
Q. What determines the compet- the region or nation.
itiveness of an economy? Besides the above, there are of course
several other factors, of which two are of
signifcance. One is God gifted, namely
abundance of natural resources and
A. Competitiveness of an economy the other is Government controlled,
depends not only on the cost of factors of namely cost of currency compared
production, namely land, material, labour to the international currencies. Both
and capital, but also on the specialized skill affect bargaining position of a nation in
sets of the region. For example, Swiss are international trade.
known for knives and precision watches,
Germans for their cars, French for the wine
they produce, Chinese for the silk, Arab Q.
countries for the perfume, Japanese for How cost competitiveness
the electronics and so on. Typically, most facilitates to increase the overall
of these are region patented, called GI competitiveness of the country and
of Geographical Indicators. Over the how it affects the organizational
years, people of a particular region have
developed skill sets where they compete growth & sustainability of the na-
and compliment with each other in a tion?
close community. Some of them have
fourished over the years while some have
been sponsored by the Governments of A. In a free market, for any unit to
www.icmai.in
The Institute of Cost Accountants of India
nterview
Cost Competitiveness -
The key mantra of Business Sustainability
CMA Subir Chaki
Wholetime Director
McNally Sayaji Engineering Limited
Q. What determines the compet- the region or nation.
itiveness of an economy? Besides the above, there are of course
several other factors, of which two are of
signifcance. One is God gifted, namely
abundance of natural resources and
A. Competitiveness of an economy the other is Government controlled,
depends not only on the cost of factors of namely cost of currency compared
production, namely land, material, labour to the international currencies. Both
and capital, but also on the specialized skill affect bargaining position of a nation in
sets of the region. For example, Swiss are international trade.
known for knives and precision watches,
Germans for their cars, French for the wine
they produce, Chinese for the silk, Arab Q.
countries for the perfume, Japanese for How cost competitiveness
the electronics and so on. Typically, most facilitates to increase the overall
of these are region patented, called GI competitiveness of the country and
of Geographical Indicators. Over the how it affects the organizational
years, people of a particular region have
developed skill sets where they compete growth & sustainability of the na-
and compliment with each other in a tion?
close community. Some of them have
fourished over the years while some have
been sponsored by the Governments of A. In a free market, for any unit to
www.icmai.in
