Such policies of the government strongly affect the businesses so being the student of business education; you are required to evaluate the effects of relaxed import policy regarding import of used cars on local automobile industry (identify at least three (03) effects) and then on economy (identify at least two (02) effects).
Solution:

Another solution:
EFFECT ON LOCAL AUTOMOBILE COMPANY:

1. In general: If import duty reduce then economy will destroy. Because menufacturing unit will close. People purchase imported items on low price and pakistanani goods are not sold mean company closed.

Explanation: The levying of tariffs is often highly politicized. The possibility of increased competition from imported goods can threaten domestic industries. These domestic companies may fire workers or shift production abroad to cut costs, which means higher unemployment and a less happy electorate.
2). A government may levy a tariff on products that it feels could endanger its population. For example, South Korea may place a tariff on imported beef from the United States if it thinks that the goods could be tainted with disease.

3). The use of tariffs to protect infant industries can be seen by the Import Substitution Industrialization (ISI) strategy employed by many developing nations. The government of a developing economy will levy tariffs on imported goods in industries in which it wants to foster growth.

2 EFFECT ON ECONOMY:

1. Import duty is a income of Pakistan Govt. When relaxation is made on the import duty. Its mean income of the govt. will automatically decrease.
2. Purchasing power of the economy will automatically increase. Because cast will decrease. For example: If imort duty will 20% then cost will be 1,000 but after relation like 10% in import duty. Cost will autiomaticaly decrease like 800.

MGT211 GDB Solution October Fall 2012

SKI Ltd runs an assembly plant for laptop computers. Managers of the company hold a meeting after six months to review current position of the business and the long term plans. Extracts from the most recent meeting are as follow:
 Marketing manager said that sales of our latest OLED screen models have exceeded expectations and the shift toward laptop with OLED display from TFT screen models is expected to continue. The company also has a chance to expand his business by entering into African market, as the trade barriers has been removed by African countries and its market has high growth potential for the company.
Operations manager revealed; the automation of the screen assembly section is in progress. Last month, we turned down a big order due to little factory capacity and shortage of skilled labor. I do propose to extend the factory space and to train more new workers.
Finance manager conferred that our profits are steadily increasing, but due to expenditures on automated machines and on research & development activities, we are facing shortage of cash flow. We need to borrow funds but we would be in trouble as interest rate has increased. At the same time, we must constantly be aware of exchange rate fluctuations as recent depression helped us to be more competitive in local market.
Requirement:
You are required to conduct SWOT analysis for SKI ltd by identifying its one strength, one weakness, one opportunity and one threat, only in bullet form.