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Message: <blockquote data-quote="VPS09" data-source="post: 24028249" data-attributes="member: 514052"><p><span style="font-size: 18px"><span style="font-size: 18px">Competitive Advantage එක ගන්න බන් ග්ලොබල් මාර්කට් එකෙ.</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px"></span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">මේ එක්සාම්පල් එක බලපන්..</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px"></span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">Let me explain this with a example </span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">Suppose India and China export the same quality Apples. Let us assume the cost to produce these apples is same in both countries and both sell the apples at cost price.</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">Price of 1 Apple in India :- Rs 100</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">Price of 1 Apple in China:- RMB 10</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">1 Dollar = Rs 50 </span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">1 Dollar = RMB 5 .</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">India sells this apple abroad at (100/50)=2 dollars</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">China sells this apple abroad at</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">(10/5)=2 dollars</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px"></span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px"></span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px"></span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">China devalues its currency by 10%</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">1 Dollar=Rs 50</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">1 Dollar=RMB 5.5</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">Now India will sell the Apple at the same 2 Dollars</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">But </span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">China will sell the apple abroad at (10÷5.5)=1.8 Dollars</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px"></span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">So Now people abroad will prefer Chinese apples since they are getting apples at 0.2 dollars  cheaper than India. </span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">So Indians exports will go down </span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">And Chinese exports will increase</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px"></span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">Now Indians will find Chinese apples cheaper so they will start importing them from China @1.8 Dollars ie@ (1.8 *50)=Rs90 .</span></span></p><p><span style="font-size: 18px"><span style="font-size: 18px">Which is cheaper than Indian made apples which will bring doom to Indian apple industry</span></span></p></blockquote><p></p>

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