Well if the Rupee is strengthening against dollar... let the export firms increase their product prices... Why burden on government for reducing taxes and duties whatever... Have we ever heard in past when rupee was declining and the US markets reducing their prices to sell their products in India ? Then why shud we worry ... Let them take our services at higher prices if they want to... The trend if is reversing let it happen.. India is getting richer day by day and why shud we worry if they are gonna pay more for our services..
RE:If Rupee increase is affecting Why not Increase ur Prices !!!
by on Jul 25, 2007 10:06 AM Permalink
"let the export firms increase their product prices"....ha...dude its not a free market where the producer of the good can charge whatever amount he/she wishes...besides local competitors there is stiff competition from other countries...take China for example...More than 50% products being used all over the world are made in china....their government besides providing the exporters with subsidies have tied their currency to the dollar (apprx 6 or 7)...however their currency is actually worth a lot more...this they have done in order to dominate the export market...
and has this made them worse off....answer is no...today it is the fastest growing economy in the world...the government needs to intervene in such a way that it can keep a check on inflation as well as keep our exports competitive....
RE:If Rupee increase is affecting Why not Increase ur Prices !!!
by page on Jul 25, 2007 10:16 AM Permalink
you are worried only about exports, by sell at lower prices, you are advertising the low quality of your products
