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

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 .

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