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

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.

Comments

Post a Comment

Popular posts from this blog

Role of capitalism

ROLE OF CAPITALISM IN DEVELOPING ECONOMY Capitalism is that part of the economics where there is no role of government agencies. The sole supe power of capitalism is in the hands of private owners. This means that if private is working on the behalf of government, instead of social welfare, their main objective is to have profits. Features Lack of intervention of government. Role of private firms. Role of price mechanisms. Advantages Encourages innovation Efficient firm incentives Consumers can choose services of their choice. Prevents government from interrupting. Creates climate of innovation and economic expansion. Helps in increasing GDP. Disadvantages Firms can gain monopoly power. Externalities damages the environment. Prone to boom and bust in the economic cycles. Inequality creates social division. Capitalist market crashes causes economic downturn , uneven business cycles. There is difficulty in mobilising unprofitable sector into profitable sectors. By taking advantage of poo...
Post a Comment
Read more

Tokenization

Tokenization  Tokenization is the process of turning sensitive data into non-sensitive data called "tokens" that can be used in a database or internal system without bringing it into scope.  •It can be used to secure sensitive data by replacing the original data with an unrelated value of the same length and format.  •The tokens are then sent to an organization’s internal systems for use, and the original data is stored in a secure token vault. •The purpose of tokenization is to swap out sensitive data—typically payment card or bank account numbers—with a randomized number in the same format but with no intrinsic value of its own. •Tokenization is the process of removing sensitive data from your business systems by replacing it with an undecipherable token and storing the original data in a secure cloud data vault.  Token will be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and p...
Post a Comment
Read more

Investment Multiplier

INVESTMENT MULTIPLIER The number of times by which the increase in ∆Y exceeds the increase in investment is called as Investment Multiplier.  Investment Multiplier or output multiplier refers to the number of times by which the increase in output/income ∆Y exceeds the increase in investment ∆I. It is measures as the ratio between change in output /income and change in investment.                                      k = ∆Y / ∆I Where k is the multiplier. Relationship between Multiplier and Marginal propensity to consume (MPC) There is direct relationship between Multiplier and MPC . Higher the value of MPC ,higher the multiplier .                   K =1 / 1- MpC This is because of the given reasons : a)Additional investment means additional expenditure in the economy, additional expenditure means additional income . b) Higher the value of MPC ,...
Post a Comment
Read more