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Organizational Behaviour

Essay by   •  February 9, 2013  •  Essay  •  264 Words (2 Pages)  •  707 Views

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My article is about the decline in export of carpets in Nepal. Carpets are one of Nepal's major export items and recent studies show that its export has fallen by 11.29 percent. In monetary terms, the exports fell to US$ 17.86 million from US$ 20.13 million. Carpet exporters in Nepal have stated that the reasons behind this drop in exports were labor shortage, high cost of production and lack in proper policy of the government. This decline in international trade negatively affects the carpet industry in Nepal, the government, unemployment and the GDP.

As the carpet industry faces a decline, it brings forward a lot of disadvantages. First of all, there will be a reduction in profits for the industry. Reduction in profits brings different problems like decline in growth of industry, which means a decline in investments. When a major export industry doesn't grow, it has negative effects in the country as a whole. Additionally, the dividends given to the investors in this sector decreases, as well as the salaries, the bonuses given and other benefits. This will make people reluctant to invest in this sector. Overall, there is high possibility in a further fall of the organization.

The decline in the carpet industry also might lead to an increase in unemployment. As the industry is facing a decline in labor, the decline in the earnings of the industry may further increase firing and laying-off of employees. This will result in the increase in unemployment and like the present trend of the country; unemployed people are more likely to go abroad as migrant workers.

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