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Set D qn 5
b) Assess which are the appropriate policies that firms and…
Set D qn 5
b) Assess which are the appropriate policies that firms and the govt could adopt to overcome such constraints. [15]
KW:
- assess: come to a conclusion
- appropriate policies: bring in multiple policies
- govt and firms: two stakeholders to take note of
- such constraints: the constraints in a
body
firms
product differentiation
- pdt differentiation consist of pdt promotion and product development
- pdt promotion: involing the use of celebrities
- product development: adding/changing new features
mergers
- merge eg central kitchen to come tgt to order raw mateials and lower AC
- firms come tgt to buy raw materials which allows them to reap mkting economies
- local firm will merge with foreign firm to break into a foreign mkt to increase its cr base
-
govt
trade agreements
- expands export mkts
- trading partners are likely to impose protectionist measures during times of recessions
- allows for more sources to import raw materials from
- increase revenue and enjoy lower COP
Limitation:
- in the SR, there is incrase competition and some firms have to leave the mkt
- in the LR, these firms are able to increase efficiency and thus be more competitive in the LR
ssp
- give eg: pdtivity solutions grant
- increase education, skills training
- increase productivity of workers
- decrease AC and MC
- unit COP decreases
- increase revenue as pple dd for goods increases
Limitations:
- takes very long
- strain on govt budget
Help firms to venture overseas given that oversease investments are the natural way for sg companies to create good jobs for employees
eg Market readiness Assistance Grant: eligible SMEs will receive up to 80% of eligible costs to help take their biz overseas
-
conclusion
- firms and govt have to work tgt to see an increase in effectiveness
- eg govt sigms FTA, it becomes easier for firms to venture into these contreis and increasr rev or reap EOS
- govt needs to have a good knowledge of firm's needs so that the govt can be more targeted
- govt can identify the critical skills that firms need when they venture out of the country
- eg iTalent Solutions Map developed by SkillsFuture Sg and SMU
- awareness and receptivity of firms in taking up govt initiatives
- firms might not be aware of initiatives
- good to consolidate all the initiatives under a one stop website