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ECO401 GDB solution - fall 2011

Economics Gdb solution::
ECO401 GDB solution -fall 2011

The Case:
Amjad hussain is currently working as Regional sales manager in Telenor Pakistan. This company is paying him Rs.60, 000 per month for his services. Meanwhile he receives a job offer from Mobilink which is considered to be at the top in Pakistan’s telecommunication sector. Mobilink is offering him salary package of Rs.80, 000 per month. At the same time, Mobilink has also laid off its 100 employees from different branches throughout the country due to financial crisis. Now Mobilink is offering low salary package to new inductees as compared to previous employees and Mobilink has also decreased the incentives for employees.

Requirement:
Think as an economist and advise Amjad Hussain that what should he do? Your advice should be supported by logical arguments.


Solution:

In my Point of view, the  Mr. Amjad should not leave the telenor company, because as case statement mention in above scanerio that the moblink company have been in crsis, and terminate may employes and paying less to new employees,
so
if he continues their service in telenor is best for mr.amjad
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