Question

Ashtar wants to set up a textile industry in Sindh. He has funds and an open space to set up the factory. Discuss what other factors he has to consider before establishing the industry? What would be the main obstacle which can lead to the failure of his planning?

Answer 1

Answer:

The availability of raw materials and the ability to transport products quickly and cheaply are the factors he must consider before establishing the industry. The unavailability of raw material is the main obstacle that can lead to failure, if not well discussed in planning.

Explanation:

Although Ashtar has resources and an appropriate space to set up a factory, he did not present the availability of raw material for this factory to be able to operate in the region. The lack of raw material can be very harmful to the factory, if not well analyzed. This is because this unavailability can make production extremely expensive, as you will need to pay for the purchase of raw material. This could make the product, produced by the factory, very expensive, which would be unfavorable to customers. In addition, the lack of raw material can even make it impossible for the factory to work normally.

The availability and price for transporting the products must also be analyzed, as this is a factor that can promote large production costs, making the product unfeasible and disadvantageous.