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متابعة

What is make or buy decision?

Is it true that in the long run a country would like to produce an agricultural or industrial product of strategic or military importance though it can be imported at much lower price from abroad? For example many countries produce wheat at a far higher price than it takes to import wheat. India imports crude oil but sells petrol to the consumers at a price higher than many countries. Why is that so?

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تم إضافة السؤال من قبل Subhranshu Ganguly , Quality Analyst. , WIPRO
تاريخ النشر: 2013/11/27
amer jayyousi
من قبل amer jayyousi , Business Development Consultant , freelance

a country that doesn't make what it needs is doomed to fail soon.

it is always easy to import or buy what we need but doing this we come slaves for the suppliers,they can raise prices,they can discontinue supply when we most need it and not ready to produce.

on the long run if you can make what you need you will be positively leveraged.

 

 

Mohammad Tohamy Hussein Hussein
من قبل Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

A make or buy decision is the decision you make to choose between whether to make something (a car for example) or to buy it.

Just like any other decision you make, it will have short term impact and a long term imapct. It will have a short term price performance and a long term price performance.

In the car example, both short term and long term parameters support buying the car and not making it. In other cases you might conclude with positive short term returns and a negative long term returns and vice versa.

Know for the context descibed in the question, will you import a cheaper wheat or go for an expensive planting og wheat. If you anticipate a risk as a negative long term impact of importing cheaper wheat, you should mitigate that risk. This coud be by going to the more expensive choice of planting your own wheat (if you can afford it) to maintain your independence or work on building your strengths to ensure that you will always be capable of importing the cheaper wheat.

المزيد من الأسئلة المماثلة

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