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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...
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Balance of payments

BALANCE OF PAYMENT

Balance of payments refers to the statement of accounts recording all monetary (arising out of export and import of goods and services, international sale and purchase of assets) transaction of a country with the rest of world. 
In other words, Balance of payments of a country is a systematic record of all economic transaction between it's residents and residents of foreign countries.

Components of BOP
It is split broadly into two categories:
a)Current account
b)Capital account

Current account records exports(X) ,imports(M) of goods and services as well as invisibles.

-Export and import:The export and imports of goods are called as merchandise or visible trade as goods are of tangible nature.

-Invisibles:  The exports and imports of services are called as invisible trade as services are of intangible nature .

*The services are further categorised into two:
Factor services involved payments in terms of income like investment income,compensation of employees.
*Whereas, Non factor services involves payment in terms of revenue like shipping,insurance,banking.
*Current transfer refer to unilateral transfers like gifts,grants,donations, remittances.

Capital account is that account which records all such transactions between residents of a country and rest of the world . It does not involve movement of goods and services between one country and rest of the world.

This account includes:

a)Foreign investment which consist of 
1)Portfolio investment is further divided into 
-foreign institutional investment refers to investment by non residents in shares and bonds of domestic company.
-ADR/GDRs depository receipts relating to equities.
2)Foreign direct investment relates to ownership of enterprises  by non resident in domestic economy.

b)External assistance which is available at concessional rate of interest.

c)External commercial borrowing is available at market rate of interest.

d)NRI deposit is another component particularly in context of emerging economies like India where interest rates are high.

e)Banking capital refers to foreign assets holding of commercial banks. banking capital inflow into domestic economy tends to rise.

f)short term trade credits .
g)rupee debt service

To conclude, capital account shows net change in ownership of assets between one country and rest of the world .

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