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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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Factors influencing terms of trade

FACTORS INFLUENCING TERMS OF TRADE

a) Elasticity of demand : The Elasticity of demand for exports and imports of a country influences it's terms of trade. If demand for a country's exports is less elastic as compared to her imports, the terms of trade will tend to be favourable because the exports can command higher prices than the imports.

b) Elasticity of supply:The nature of elasticity of supply also significantly influences the country's TOT . If the supply of a country's exports us more elastic than the imports, the TOT will tend to be favourable.

c)Nature of goods:If a country is producing and exporting only primary goods,and importing manufacturing goods the TOT will be unfavourable.

d)Economic development:The economic development has two types of effects :
1) The demand effect which refers to the increase in demand for imports as a result of increase in income associated with economic development.
2)The supply effect which refers to the increase in supply of imports substitutes .
The net effect of economic development depend upon the extent of these two effects.

e)Rate of exchange: Changes in rate of exchange of a country's currency also affect its TOT. If a country's currency appreciates , it's TOT will improve because a rise in value of currency causes an increase in exports prices and decrease in import prices.

f)Tariff policy:Tariff and quotas also influence the TOT .These measures , if not retaliated by other countries ,TOT will tend to be unfavourable in this case relative to the underpopulated or optimally populated country.

g)Population size:An overpopulated country will have higher demand for imports. As a result the TOT will tend to be unfavourable in this case relative to the underpopulated or optimally populated country.

h)Country size :A larger country will tend to have less favourable TOT as compared to a smaller country. Thus is because the smaller country can reap the gains of economies of scale enjoyed by the large one in the international trade.

i)Degree of competition:If a country enjoys monopoly power in case of its exports and there are many alternative sources of supply of its imports, then it will have favourable TOT.

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