Thanks for your question. Trying to explain how scarcity of raw materials limits export earnings.
Why lack of raw materials hinders export earnings:
* Reduced production capacity: Factories cannot produce at full capacity without raw materials. As a result, the quantity of products produced decreases.
* Orders may be cancelled: If the factory is unable to fulfill the order on time, the buyers are forced to buy the product from elsewhere. Apart from the decrease in export earnings, the reputation of the company is also damaged.
* Difficult to find new buyers: If production is disrupted due to lack of raw materials, it becomes difficult to find new buyers. Because no buyer will want to deal with a company from whom the product is not available within the stipulated time.
* Difficult to compete on price: When raw material prices rise, production costs rise. As a result, the price of the product has to increase. This makes the price higher than other countries' products and makes it difficult to compete in the market.
* New technology and product innovation slows down: Due to lack of raw materials proper investment cannot be made for new technology and product innovation. This results in delays in bringing new products to market and the possibility of lagging behind competitors.
Summary:
Scarcity of raw materials is a critical issue, which can affect export earnings in several ways. Solving this problem requires joint efforts of government, business and all stakeholders.
If you want to know more about this, you can ask any specific question.
For example you can ask:
* What is the reason for the lack of raw materials?
* What can be done to solve the lack of raw materials?
* Which industries in Bangladesh are suffering from lack of raw materials?
I will try to answer your question as best as possible.
1575.373 SRY