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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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BOP Disequilibrium

BOP DISEQUILIBRIUM - TYPES

Disequilibrium in BOP may be of following kinds:

a) Cyclical Disequilibrium: Disequilibrium caused by trade cycles are called as Cyclical Disequilibrium.Growth of trade undergo a change as a result of trade cycles,due to which BOP is influenced. It can be corrected by import-export adjustment.
b)Secular Disequilibrium:When an economy undergoes intensive changes,it causes Secular or long term Disequilibrium in BOP.
c) Structural Disequilibrium:When Structural changes take place in some sectors of the economy,then they effect import -export trade of the country which result into Structural Disequilibrium.
d) Fundamental Disequilibrium:When a country suffers from chronic Disequilibrium in its BOP ,then according to IMF ,it will be called as Fundamental Disequilibrium.
e) Temporary Disequilibrium: Short term factors account for temporary Disequilibrium in BOP. 

EFFECTS
a)It lowers international economic creditability of the country.
b)Economy of a particular country is subjected to exploitation.
c)Reserves of gold and precious metals go down ,as it flows out from the country .
d)Economic development pace slows down during this.
e) Dependency of domestic country is more on the foreign country .
f)Foreign exchange reserves of the country are depleted.
g)Foreign dependence assumes the form of political dependence.
h)Foreign interference in country's economic,social and political spheres goes on increasing.

CAUSES OF BOP DISEQUILIBRIUM
a)Economic factors 

•Huge investment-The reason being the adverse BOP in the developing countries is the huge investment in the development schemes.

•Rise in imports -Large scale development expenditure may cause large imports.On the other hand ,exports may not increase because countries are primary producers already.

•Domestic prices -High domestic prices of -export industries affect the volume of exports and create Disequilibrium in BOP. Increase in prices due to high wages ,cost of raw material reduces exports and causes Disequilibrium in BOP.

•Changes in foreign exchange rates-Increase in external value of money makes imports cheaper,thus exports fall and cause BOP Disequilibrium.

•Cyclical fluctuations-Cyclical fluctuations in business cycle such as depression or recession causes Disequilibrium
.
•Substitutes availability-New sources of supply and new better substitutes to existing products and change in costs results in BOP Disequilibrium.

b) International factors

•Demonstration effect -The people of less developing countries tend to follow the consumption pattern of developed countries.As a result of this demonstration effect ,the imports of less developing countries will increase causing BOP Disequilibrium.

•New independent countries-The newly independent countries in order to develop international relations,incur huge expenditure on establishment of embassies,missions in other countries which affect their BOP.

•Borrowing and lending-International borrowing and lending is another reason as borrowing of a country tends to have unfavourable BOP while lending tends to have favourable BOP. 


c)Political factors

•Instability -political instability resulting in large capital out flows and damps the inflow of foreign capital which causes Disequilibrium in BOP.

d)Social factors 

•Change in fashion -Change in fashion,tastes , preferences may effect imports and exports of a country.

•Population explosion-Another reason being BOP Disequilibrium is population explosion in poor countries.Rapid growth of population tends to increase imports and thus causing Disequilibrium in BOP.

•Cross border prejudice- It forces the countries to shift to expensive sources of imports and less profitable areas of exports which often drive an economy towards BOP Disequilibrium.

e)Natural factors 

•Natural calamities such as droughts,floods,volcanic eruptions adversely  affect the production of the country ,due to which imports increases and leads the BOP towards Disequilibrium .

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