Development Strategy Of The Government Gives Priority To Local Industries Which Consider The Technological Capacity Of The Country And Which Are Smooth And Suitable To The Technological Transformation To Substitute Imports. A

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Development strategy of the government gives priority to local industries which consider therntechnological capacity of the country and which are smooth and suitable to the technologicalrntransformation to substitute imports. Align to this developmental direction many local andrnforeign direct investors were attracted to the metals and engineering sector. Reinforcement barrnmanufacturing industries are one of these categories which produce the main input forrnconstruction sector of the country. As many investors were attracted to these industries therndesign capacity of industries producing this product were increasing from year to year andrnreached currently on 4,754,874 ton per annum. These companies are operating with low capacityrnutilization as 32% capacity utilization in 2014/15 which was decreased to 6.79% in 2019. Reportrnof 2019 indicated that on average 57.51% of reinforcement bar yearly consumption are imported. rnThe objective of the study is to identify factor that highly affect consumer purchasing decision,rnwhether there is evidence based quality difference between local and imported reinforcement barrnor not, the product that have higher price and to identify the more available product in the marketrnas per consumer need. For the purpose of this study primary and secondary data has beenrncollected through different data collection mechanisms, and data were analyzed using descriptivernstatistics and factor analysis. The result revealed that quality is the major factor that highlyrninfluences consumer shift from local to imported reinforcement bar followed by availability.rnHowever, tested quality result of secondary data indicates that local reinforcement bar havernhigher quality than imported. This contradicts the consumers view. Moreover, all primary andrnsecondary data analyzed shows that local reinforcement bar is more available in market thanrnimported and price of imported is higher than local. As quality problem arises from productsrnproduced from scrap manufacturers should strongly control the quality of products producedrnfrom scrap through installation of necessary laboratory facilities, manipulation of chemicalrncomposition at melting stage, determination of rebar grade and should price accordingly.rnGovernment also should contribute its share by tightening its quality control method.rnFurthermore, to increase the supply of local industries the government should intervene tornincrease availability of raw materials locally through the development of iron ore by directrnreduction iron (DRI) process.

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Development Strategy Of The Government Gives Priority To Local Industries Which Consider The Technological Capacity Of The Country And Which Are Smooth And Suitable To The Technological Transformation To Substitute Imports. A

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