Obstacles to Economic Development

Obstacles to Economic Development

Obstacles to Economic Development Describes, there are many obstacles to economic development which are as follows: Vicious Circles of Poverty There is a circular relationship known as the vicious circles of poverty, that tend to perpetuate the low level of development in LDCs. The basic vicious circle stems from the fact that in LDCs total … Read more

Characteristic of an Underdeveloped Country

Characteristic of an Underdeveloped Country describes, Some of the characteristics of an underdeveloped country as follows. General Property An underdeveloped country is poverty-ridden. Poverty is reflected in low per capita income. Absolute poverty is measured not only by low income but also by malnutrition, poor health, clothing, shelter, and lack of education. Thus absolute poverty … Read more

Measurement of Economic Development

Measurement of Economic Development

Measurement of economic development in four ways, GNP, GNP Per Capita, Welfare, and Social Indicators. GNP One of the methods to measure economic development is in terms of an increase in the economy’s real national income over a long period of time. This measure fails to take into consideration changes in the growth of the … Read more

Effects of economic growth on international trade

Effects of economic growth on international trade

Effects of economic growth on international trade. Economic growth may take the form of either factor accumulation or technical growth or both. Economic growth has production and consumption effects. Production Effects on Growth The production effects of factor accumulation or growth emphasize the behavior of domestic production of exportable. Increased production of exportable tends to … Read more

What is the effective rate of Protection

effective rate of protection

What is the effective rate of Protection also implications and arguments for protection? The effective protection rate measures the degree of protection given to domestic production activities. It is defined as the percentage increase in domestic value-added per unit of output made possible by the tariff structure compared to a situation under free trade. The … Read more

Sporadic, Predatory, and Persistent Dumping

Dumping Sporadic, Predatory and Persistent

Sporadic, Predatory, and Persistent Dumping explained by three important types that are customary to distinguish among these. Dumping occurs when a commodity is sold to foreign purchasers at a price lower than the price changed for the identical product on the domestic market. The word identical makes it difficult to establish, the existence of dumping, … Read more

International Commodity Agreements (ICA)

International commodity agreement

International Commodity Agreements (ICA), International trade in certain primary commodities is governed by international commodity agreements allegedly designed to stabilize the world price of the commodity in question or dispose of surpluses. Nations and Agreements It is usually the producing nations that press for such agreements, claiming that when the response to price change on … Read more

International Cartels: Objectives and Demerits

International Cartels

International Cartels: Objectives and Demerits, when a group of business organization of some industry located in different countries, or a group of governments. Agrees to limit competition and to regulate markets and restrict trade in some way, it is known as an international cartel. Now we discuss International Cartels: Objectives and Demerits with the help … Read more

Justification and effects on economic of Import Quota

effects on Economic of import quota

Justification and effects on economic of Import Quota:- Explain the import quota and what effect on the economy of import quota and also discuss its justification? The govt. may directly restrict the volume of permissible imports to a certain maximum level. The absolute limit is known as the import quota. For example, the number of … Read more

Equivalence and difference between Tariff & Quota

Equivalence_between_tariff_quota

Equivalence and difference between Tariff & Quota, describe the difference. The diagram describes the domestic situation in the car market of a small car-importing nation that faces infinitely elastic export supply on the world market. In the case of Tariff In the absence of international trade, the domestic price is P1, while under free trade … Read more

Effects on Trade after Improve Environmental Quality

Effects on Trade

Effects on Trade after Improve Environmental Quality, What happens to the output of a nation and its effect on trade when it decides to improve environmental quality? Some goods and services are simply not traded internationally. It is certainly true of intangibles such as environmental quality. Pollution control aims at internalizing environmental externalities. In so … Read more

Transformation and Community Indifference Curves

Transformation and community indifference curves

General Equilibrium Transformation and Community Indifference Curves for two countries H and F, and two products A and B. we explain in the diagram. General Equilibrium Transformation and Community Indifference Curves: The two countries’ respective trade indifference curves drawn from the tangencies of the trade indifference curves with the various terms of trade lines. It … Read more

Offer Curve and Explain the Derivation Offer Curve

Derivation of Offer Curve

Offer Curve and Explain the Derivation of Offer Curves by different examples, let us start. It shows different amounts of the importable commodity which a country demand in response to one unit of exportable commodity. The offer curve of a country shows the nation’s willingness to import and export at various relative commodity prices. Now … Read more

Contrast and Community Indifference Curve

Contrast and Community indifference Curve

Contrast and Community Indifference Curve and use of these in the field of International Trade. The PPC of the country shows the supply side of that country while the Contrast and Community indifference curve represents the demand side of the economy. Indifference Curve Definition An indifference Curve is defined as depicting all possible combinations of … Read more