Are payday loans costs going up?
It is important to emphasize that the lower labour cost in itself does not provide a sustainable competitive advantage. In the long run, other firms may develop technologies reducing the cost component substantially. In addition, as the industry develops and becomes lucrative, the costs are expected to go up. Lower labour costs can only provide initial impetus in getting a foothold in the international market place. Once a firm establishes itself, it will have to develop traditional resources, such as technological and market capabilities. The positive benefi ts of lower labour costs can get enhanced when coupled with the traditional resources as has been seen in the case of software and pharmaceutical firms of India.
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