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  • Category: Quiz & Puzzles

    Have You Ever Wondered About The High Dollar Prices Could Be An Advantage For Our Country.

    Do you know that if the dollar prices gets its value equal to the value of a rupee then this could prove a serious threat to the employment generation in our country, in India. How?

    You must be aware of the fact that major consultancy companies including the BPO's are working for the overseas operations but all the way based in India. This is because the cost of establishment as well as running a business is less in comparison to the developed countries like the USA. Now imagine that their Dollar value as well as our Rs. value gets equivalent to each other or having a minor difference then the company operating from overseas won't find any big revenue loss then instead of giving employment to the Indians they will outsource the employment from the local regions. So in that case we in India will be loser as will have lesser employment then resulting in more unemployment throughout which won't be a good for our economy as well.

    Not to tell that being in the situation of lesser jobs, our market will be good for nothing as the purchasing power of the community is now weaken effecting the overall economy.
  • #626256
    The author made some interesting revelations on how the dollar prices would have impact on Indian BPO companies which are purely based on dollar rate payment and even little fluctuations shall have huge impact on their earnings. Most of the companies which have huge employees working in three shifts, the inflow of dollar payment would be more and great and that will have greater profit to the company. But imagine the reverse situation when the dollar price starts to dip and that will have worst effect on the pay scales and even removal of some staff citing reason for the slump in their earnings.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #626287
    If we are exporting any item to other countries and if we are receiving the money in dollars, then the downfall of rupee value against a dollar is advantageous to our country. For Example when we have quoted an item the cost as 400 dollars when 1 dollar is equal to 60 rupees. When we got the order and when you supplied the material you will receive 400 dollars. At that time if the dollar value is 65 rupees the value in rupees id 5X 400 = 2000 rupees in excess will be received.
    When you are importing some material of value 400 dollars. When you order the same. By the time the materials are received to pay 400 dollars to the party you have to spend 2000 rupees in excess.
    Similarly, if they are paying the salaries in dollars for the people in India the reduction is rupee value is good but if you are receiving in rupees it makes no difference for an employee.

    always confident

  • #626295
    If the dollar goes up in comparison to rupee then our exporters are at an advantageous position as they will get more rupees in hand after conversion of the paid dollars by the foreign company. Overseas BPO units will also be happy to get more work and more profit.

    On the other hand if dollar goes down our exporters will be losing rupees while importers will be happy to pay less rupees for imports. The BPO will also be costlier for the foreign companies reducing the margin for BPOs.

    Any fluctuation in dollar value affects our business, related to foreign countries, directly.

    Knowledge is power.

  • #626315
    I totally agree. But what you say is right when dollar value falls. But what if it's the rupee value that increased? Wouldn't that mean our economy is flourishing and we're now a superpower?
    Now, when we're equal to dollars, can't we do the same with developing or underdeveloped countries?

    Hm. An interesting thread.
    I don't think such scenario is possible in near future. There are countries in Asia and Europe with far lesser currency value than a ruppee.
    We'll reap our benefits from them instead.
    That would make India a truly Capitalist economy.

    Are you in agreement with my hypothesis?

    The stronger a light shines the darker are the shadows around it.

  • #626319
    Yes, the appreciation of dollar price vis-a-vis Indian rupees will be beneficial for exports from India. But if the appreciation is above some limit, it may cause some other problem. So, everything should be within limits.
    Beware! I question everything and everybody.

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