Commercial Policy Define Instruments consumer-producer

commercial policy

Commercial Policy Define Instruments consumer-producer: A definition of such policy which is designed to affect a countries trade relations with the rest of the world country is known as a commercial policy. Instruments of Commercial Policy Tariff – Definition Types Effect of tariff (partial analysis) price effect, consumption effect, the volume of trade effect balance … Read more

Monopoly and Monopsony Power of Trade Effects of Tariff

Monopoly and Monopsony Power of Trade Effects

Monopoly and Monopsony Power of Trade Effects of Tariff General approach small countries (Price Taker Country) Monopoly and Monopsony Power Large countries (Price Maker Countries) Monopoly Power The small country has a very small share in the total supply of the particular commodity in the international market. So she is not in the position to … Read more

Role of Foreign Trade Importance LDCs Benefits

Role of Foreign Trade

The role of foreign trade in economic development is considerable. The classical and neo-classical economists attached so much importance to international trade in a country’s development they regarded it as an engine of growth. Importance of Foreign Trade Foreign trade possesses greats importance of LDCs. It provides the urge that develops knowledge and experience, that … Read more

Easy Explained Big Push Theory

easy explained big push theory

Easy Explained Big Push Theory: The Big Push associated by professor Paul N. Rosenstein-Rodan. The thesis is that “Big Push” or a large comprehensive program is needed in the form of a high amount of investment and to overcome the obstacles to growth in an underdeveloped economy and to launch it on the path of progress. … Read more

Effects of Population growth on Economic

Describes Effects of Population growth on Economic Development: It was only Mathew and Ricardo who created an alarm about the effects of population growth on the economy. But their fears have proved unfounded because the growth of population in Western Europe has led to its rapid industrialization. Effects of Population growth on Economic Development, Some … Read more

Describes Different Hypothesis Effects

Describes Different Hypothesis Effects. In 1949, Dusenberry presented relative income theory. The starting point of the theory this that consumption and saving do not depend upon the level of current income. Relative Income Hypothesis In other words, spending is related to a family’s relative position in the income distribution of approximately similar families. A person’s … Read more

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

Economic Growth and Economic Development

Economic Development

Economic development refers to the problems of underdeveloped countries and economic growth to those of developed countries. Maddison Says, “The raising of income levels is generally called economic growth in rich countries and in poor ones it is called economic development.” Kindleberger Says, Which means “greater productivity, while economic growth means more productivity and changes … 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