Skip to main content

Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Post a Comment

INTERNAL AND EXTERNAL DISECONOMIES

Internal and external Diseconomies
The economies obtained by a firm or an industry are ultimately limited.A point comes where some factors start operation in the opposite direction and the cost of production start rising .These factors are called as internal and external Diseconomies.

Internal Diseconomies
These are those factors which raise the cost of production bid a firm as its scale of production is increased beyond a particular point. 

These include following given factors :
a) Technical difficulties - A main reason for internal Diseconomies is technical difficulties of operating large sized firm. There is a limit to the division of labour and splitting down of production processes. As division of labour is pressed beyond a point, Indivisibility of factors comes in. Every machine has an optimum capacity for work and an optimum proportion with other factors. If this proportion is exceeded, internal Diseconomies follow.

b) Unwieldy management- Another reason for decreasing returns to scale is the difficulties of managing a large sized firms. It becomes difficult to coordinate and supervise the work of different departments as specialization increases. There is a limit to decentralisation of decission. Beyond a limit the operational efficiency of top management falls. These are the major factors behind internal Diseconomies.

External Diseconomies
External Diseconomies are a part of economic theory. Some writers argue that there must be a limit to the expansion process between industries. The forces which ultimately limit the expansion of an industry may be called external Diseconomies.

They have provided 3 main reasons for this :
a)When an industry gets localised or concentrated in one place the cost of transportation increases dur to congestion.
b)As an industry expands , there is scarcity of some raw material or other which cannot be totally substituted. As a result cost will start rising.
c)As an industry expands, there are difficulties of obtaining skilled workers, finance and credit because other industries also compete there. As a result of all these factors , external Diseconomies become more forceful as Industry matures . 

Comments

Post a Comment

Popular posts from this blog

BASICS OF MACROECONOMICS

Basics of Macroeconomics   a) Capital goods : Capital goods are described as fixed assets of producers which are used in the process of production for several years. Plant, heavy equipment, machinery are examples. b) Investment : Investment is a process of capital formulation also known as the process of increase in stock of capital .             I =∆k Where I is investment and ∆k refere to the change in capital stock during the year. There are two types of investment  Fixed investment refers to increase in stock of fixed assets of producers during the period of an accounting year .Plant ,machinery are some of its examples.It is also called as fixed capital formation. Inventory investment are those stock which keeps varying . At a point of time,producers have stock of finished goods ,semi finished goods or raw material . These are called as inventory investment. Change in the stock of these are called as inventory investment of producers. c) D...
Post a Comment
Read more

Insolvency and bankruptcy code

  Insolvency and bankruptcy code (IBC) 2016 IBC 2016 is a code which is not applicable to financial institutions like banks, pension funds, mutual funds. This means if company has taken loan from a bank and is not making repayment of its debt, bank can then move to National company law tribunal under IBC 2016 to declare the company bankrupt. To deal with the bankruptcy of financial institutions, Government is planning to bring " Financial Resolution and Deposit Insurance " (FRDI) bill. It is a system to deal with financial firms insolvency while at same time providing highest level of safety to the depositors .  This law is in dicussion since last 4 to 5 years, but still not passed by the parliament due to "Bail - in "clause. It states that in case there is bankruptcy or insolvency in bank, then depositors will have to give up some parts of their deposit to protect the bank. There is disagreement on this clause.  To conclude, The FRDI bill, 2017 was mea...
Post a Comment
Read more

SAARC

SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC) Introduction    The South Asian association for regional cooperation comprises of Afghanistan, Bangladesh, Bhutan, Indian, Maldives, Nepal, Pakistan and Sri Lanka. The foreign ministers of these countries, at their first meeting in New Delhi in August 1983,adopted the declaration on SAARC and formally launched its Integrated Programme of Action IPA. SAARC has also nine observers - Australia, China, EU , Iran, Japan, Republic of Korea, Mauritius, Myanmar and USA. Meaning  The aim of the organisation is to accelerate the process of economic and social development in Member states joint action in agreed areas of cooperation. Observers are not allowed to be part of deliberations and their participation is limited to the inangural and closing sessions of the summit. Objectives   a)To promote the welfare of the people of South Asia and to improve their quality of life. b)To accelerate economic growth, social progess ...
Post a Comment
Read more