[Show all top banners]

kentuckydaka
Replies to this thread:

More by kentuckydaka
What people are reading
Subscribers
:: Subscribe
Back to: Kurakani General Refresh page to view new replies
 Using condoms to make sarees & Horlicks to feed cattle: How business decisions lead to surprising outcomes
[VIEWED 3962 TIMES]
SAVE! for ease of future access.
Posted on 07-29-11 4:22 AM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

It takes 14 condoms to make a Banarsi saree. Around a decade ago, doctors in Varanasi finally discovered why free condoms being distributed for family planning had suddenly become so popular. They were being used to make the city's most famous export, the Banarsi saree.

The condoms are reversed and used to rub the bobbin (on which the yarn is wound) and smoothen it with their lubrications. This ensures that the bobbin move faster and at the same time the yarn does not snap. The weavers now use condoms to protect their fingers while weaving.

The Sonepur mela (fair) held in Sonepur, Bihar, is one of the biggest cattle fairs in the world. The story goes that around this time the sale of hair dye suddenly shoots up, and massive amounts are sold. Apparently the hair dye is used to blacken buffaloes, which are on sale in the mela. So the blacker the buffalo, the more money you make.

In fact, talking about buffaloes,Horlicks is often used as a health drink for cattle in some parts of the country. So what is common to all these stories? Thelaw of unintended consequences, which at a very basic level states that purposeful action can lead to unintended consequences. The consequences highlighted in the stories are positive consequences, but that is not the case always.

The high salaries that CEOs get paid in the US has always been a concern. To mitigate this, the Securities Exchange Commission (the stock market regulator in the US) decreed that all CEO salaries need to be disclosed to the public. Instead of having the impact it was supposed to, it had the opposite effect.

Between 1976 and 1993, CEO salaries went up from 36 times the pay of the average worker to 131 times. As behavioural economist Dan Ariely explains in his book Predictably Irrational, "It encouraged other CEOs to demand higher pay, since now they had hard data telling them they were underpaid."

SEBI, the Indian stock market regulator, decided to move to a zero entry load regime in August 2009. This meant that mutual fund agents and distributors would no longer be paid commissions as a fixed portion of the amount an investor was investing through them. The agent would now have to separately negotiate his commission with the investor. The idea being that this would move commissions in the downward direction.

While the intentions were noble, the outcome was not. The agents and the distributors simply stopped selling mutual funds and started selling high commission paying investment products offered by insurance companies.

The New Pension Scheme (NPS) that opened for the general public in May 2009 has extremely low charges for investing. The fund management charge of NPS is 0.0009% of the value of the investment, every year.

In comparison, insurance companies charge 0.75-1.75% as fund management charge. Despite this NPS hasn't taken off, given that there is no incentive for distributors to sell the scheme. So the low charges which were supposed to be good for the customers haven't turned out that way, with no incentives for distributors to sell the scheme, making it a non starter.

In the mid 1980s, Japan wanted to develop Tokyo as an international financial hub. To do this, a lot of restrictions on domestic as well as international financial transactions were done away with. The reforms allowed Japanese corporates to access the bond market. This meant fewer clients for Japanese banks and so they pushed up lending to real estate developers

 
Posted on 07-30-11 8:19 AM     [Snapshot: 432]     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

गूड् भन्दा सस्तो हर्लिक्स भएर होला ?

 


Please Log in! to be able to reply! If you don't have a login, please register here.

YOU CAN ALSO



IN ORDER TO POST!




Within last 30 days
Recommended Popular Threads Controvertial Threads
What are your first memories of when Nepal Television Began?
nrn citizenship
Send Parcels from USA to Nepal & Worldwide.
Why is every youths leaving Nepal? Why are not youths entering politics and serving the country, starting business etc?
TPS Work Permit/How long your took?
महँगो अण्डाको पिकल्प : कुखुरा र खोर भाडामा लिने
Travelling on TPS advance travel document to different country...
Informatica consultancy share
काेराेना सङ्क्रमणबाट बच्न Immunity बढाउन के के खाने ?How to increase immunity against COVID - 19?
TPS Renewal Reregistration
Nepali doctors future black or white usa ?
हेर अमेरिकामा नेपालीहरुको बेज्जत
Thank you for the sajha policy
Are you ready to know the truth?
मन भित्र को पत्रै पत्र!
चितवनको होस्टलमा १३ वर्षीया शालिन पोखरेल झुण्डिएको अवस्था - बलात्कार पछि हत्याको शंका - होस्टेलहरु असुरक्षित
Another Song Playing In My Mind
Does the 180 day auto extension apply for TPS?
Travelling to Nepal - TPS AP- PASSPORT
WHAT DO YOU GUYS THINK ABOUT THIS?
NOTE: The opinions here represent the opinions of the individual posters, and not of Sajha.com. It is not possible for sajha.com to monitor all the postings, since sajha.com merely seeks to provide a cyber location for discussing ideas and concerns related to Nepal and the Nepalis. Please send an email to admin@sajha.com using a valid email address if you want any posting to be considered for deletion. Your request will be handled on a one to one basis. Sajha.com is a service please don't abuse it. - Thanks.

Sajha.com Privacy Policy

Like us in Facebook!

↑ Back to Top
free counters