Mgt301 Gdb 1 Solution Spring 2022

Before solving gdb must read the instructions to understand everything easily. The last Date of this gdb is 17 August.

Scenario:

Due to the current economic situation, many industries in Pakistan have been badly affected. One of these is the automobile industry. As compared to last year, automobile prices have increased by around 50%. Currently, some automobile manufacturers are shutting down their production, and are not accepting any further bookings.

Point of discussion:

In your opinion, are economic factors affecting the price hike in the automobile industry? Support your position with at least three logical arguments. 

Solution Here

Yes, the economic factors affecting the price hike in the automobile industry:

Logical arguments:

Taxes Imposed by the government:

The automobile industry said that they have to pay a high amount of taxes to the government. In 2022 cars sale in Pakistan decline. Just because of the hike in car prices. Automakers already pay a tax on the import of auto parts.

Economics Crisis:                                      

When the economy is falling its affect on the level of production. Pakistan is considered as underdevelopment countries. Our economic crisis is the cause of low production. The economic crisis also affects purchasing power.

Devaluation of Currency: Devaluation of currency is the largest reason for the jack-up amount of cars in Pakistan. The dollar is considered as an international currency. At the international level traders follow the dollar rate. This is a big reason for rising cars cost. If the strength of the dollar increases then automakers have to pay the amount on the current dollar rate. They have to pay the FED and other taxes to the tax department. All of these are increasing the cost of the product. Auto manufacturers hike the prices to meet up their expenses.

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