Economics

Multinational co-operations (MNCs) Meaning : MNCs are huge industrial organisation which extends their industrial and marketing operations through a network of their branches.Instead of aiming for maximization of their profit from one or two products ,these operate in number of fields and from this point of view,their buisness stategy extends over number of countries. Features a)These are giant in size. Their sales run into billions of dollars and thus makes super normal profits. b)They operate all over the world  where these have effective control and supervision. c)They have been comprised of Oligopoly structure. d)These usually grow in a spontaneous and unconscious manner. e)An MNCs facilitates multilateral transfer of resources includes equipment, machinery, raw material, finished products etc. f)The various countries have their share in total capital of corporation. g)They have multi national management. h)Large part of capital assets of parent company is owned by the citizen ...

Major issue facing Indian economy Introduction - After independence, India made progess in political, economic, social fields but many problems like poverty, unemployment and inflation are yet to be solved. Meaning - Economy means a money framework in which all economic activities of a country are explained. Indian economy is a mix economy whereby both private and public sector plays its role. The root cause of the 3 problems namely poverty , unemployment and inflation is population explosion that is increasing at very fast speed. These three problems are major challenges for Indian economy. Poverty Poverty has attracted attention of economists, sociologists and educationists . It exists when one is not able to get the basic necessities of life - food ,clothes and shelter. It is condition of lower standard of living, inability of an individual to get minimum requirement of food , education and health. It further indicates 3 direction  a) Economic inequality b) Economic dependence ...

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 ...

THE WORLD TRADE ORGANISATIONS Introduction : The Uruguay Round of GATT negotiations concluded on 5th April, 1994 at Marrakesh, Morocco. The WTO agreement is the Uruguay Round agreement infact whereby the original GATT is now part of WTO Agreement which came into force from January 1,1995. Meaning : The WTO is the successor to the GATT. The WTO is properly established permanent world trade organisations. It has a legal status and enjoys privileges amd immunities on same footing as IMF and WORLD BANK. It includes the GATT as modified by Uruguay round and all agreement concluded under GATT and complete results of Uruguay Round. There were 77member countries of WTO on January 1,1995.Now, there are 160 members India is one of the founder members. Objectives a)It's relation in field of trade and economic endeavour shall be conducted with view of raising standard of living, enduring full employment and large and steadily growing volume of real income and trade in goods and services. b)T...

General aggreement on tariffs and trade GATT Introduction The GATT emerged in Havana in the year 1947-48 as the allied owners thought of having a liberal world trading system after World War 2nd.Fifty three nations drew up and signed a charter for Establishing International Trade Organisation ITO . But due to the negligence of Havana centre by Congress , it never came into existence. Simultaneously, 23 nations agreed to continue extensive tariffs and trade. This was signed on October 30, 1947 and came into force from January 1,1948 when other nations had also signed it. In the year 1995 ,GATT disappeared and passed into history when it was merged in the World Trade Organization . Meaning:  GATT was a multilateral treaty which had been signed by 96 government known as contracting parties. It was multinational treaty which covered 80% of world trade. It was decision making body with a code of rules for conduct of International Trade, and mechanisms for trade liberalisation. The contr...

THE EUROPEAN UNION Origin of EU The European Economic Community (EEC) or European Community (EC )was founded in 1957 under the treaty of Rome,France, Germany, Italy, Belgium,Luxemberg and Netherlands. The community of these orginal members was enlarged with the addition of Ireland , Denmark and United Kingdom in 1973.In 1981 Greece joined the community afterwards  Portugal and Spain joined in 1984.The community has now 28 members. Since 1955,it is also called as European Union (EU). AIM of the union The forerunner of EU was European Coal and Steal Community (ECSC) treaty which was ratified by original members in 1952.It removed all import duties and quota restrictions on coal , iron ore, steel on intra community trade. The aim was to have economies of scale in these industries. The integration. Of six members was enlarged by Treaty of Rome in 1957 for the establishment of common mark for all commodities . Objectives of EU a)To eliminate custom duties, restrictions in regard to impo...

THE WORLD BANK Origin of the bank The International Bank for Reconstruction and Development (IBRD) or The World Bank was established in 1945 under the Bretton Woods Agreement of 1944 to assist in bringing about a smooth transition from a war time to peace time economy . Membership of the Fund The members of the International Monetary Fund are the members of IBRD. It had 180 members in 2015.If a country resigns its membership, it is required to pay back all the loans with interest on due dates. If the Bank incurs financial loss in the years in which member resigns, it is required to pay its share of loss on demand. Functions of the Bank a)To assist in the development of territories of its members by facilitating tthe investment of capital. b)To encourage the development of productive facilities and resources ib less development countries. c)To promote foreign investment by means of guarantees on participation in loans. d)To supplement private investment by providing finance for product...

INTERNATIONAL MONETARY FUND (IMF) Origin of IMF The International Monetary Fund is an institution established by 44 nations under the Bretton Woods Agreement of July 1944 . The world depression of 30's forced every country to abandon the gold standard. This led to the adoption of purely nationalistic policies whereby almost every country imposed trade restrictions, exchange controls in order to encourage it's exports .This further brought a marked decline in world trade and extention of depression . It was against this background that 44 nations assembled at United Nations Monetary and Financial conference at Bretton Woods, New Hampshire from July 1st to 22 nd , 1944. Thus, IMF was established to promote economic and financial cooperation among its members in order to facilitate the expansion the expansion and balanced growth of world trade. Membership of the fund It started functioning from March 1st ,1947.In January 2016 ,the Fund had 188 members .The Amendment of the article...