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

Measures to solve the problems

MEASURES TO SOLVE PROBLEMS OF TRADE CYCLE

The measures which can be employed to solve the problems arising out of business cycles are classified into two types :

a)Preventive measures :These are those measures which are designed to prevent the individual concern from suffering losses during Recession and contraction phases of the cycle .
b) Relief measures :These are those measures which are designed to quicken the recovery following a period of contraction.

Preventive measures
These include all measures which would be adopted during the period of expansion.
1) Conservation of assets during expansion by avoiding undue increases in plant and equipment and in dividends.
2)Managing the plant use in such a manner as avoids decrease in unit production and increase in unit overhead costs and maintain satisfactory labour conditions and steady employ throughout the year.
3)Avoiding excessive inventories and purchase commitments beyond the available financial resources and excessive sales promotion which results in cancellation of orders.
4)Employing a flexible credit standard so that the terms and conditions can be tightened during expansion and relaxed during contraction.

Relief measures
1)Reduction of costs of manufacturing products through streamlining of production processes and quick liquidation of inventories.
2)Improving the quality of products and adoption of marketing methods based on accurate analysis of developing market situation for securing increased demands.
3) Development of plant labour and organisations to make it more flexible and versatile in order to meet challenges of contraction phase.
4)Launching of new merchandise lines during slack periods so that plant and organisations are both ready for production and sales so the contraction phase starts .

Other measures
1)During the period of depression ,the credit standards may be softened in border to attract customers.
2)Fixed investments are heavy and made in plant,building and equipment. The business manager must determine long term trend of given business and should plan his programme accordingly.
3)The choice among price rigidity,price variation to cost ,price variation to price,price variation to stabilize market,price variation relating to price of substitutes is open to firms which are having some monopolistic advantage in prove fixation.
4)The proper cyclical advertising policies should be adopted :

-Commodities having high income elasticity of demand require larger advertising expenditure to overcome consumer resistance during contraction phase.
-Old products should be improved and new trends developed in order to attract consumer to product even when their incomes are at low level during recession phase .
-Firms must stabilize their advertising outlays so as to maintain continuity in promotion .

Comments

Post a Comment

Popular posts from this blog

MAJOR ISSUES IN INDIAN ECONOMY

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 ...
1 comment
Read more

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
Read more

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