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Supply of Basic Industrial Inputs:
Allowing their duty-free imports by exporters would require an elaborate machinery of customs and import licensing to ensure that the imports did not leak out into the domestic economy. Even now the machinery which allows limited export-related imports, does not function very satisfactorily. To extend it to manage large-scale imports of basic goods is not possible. Besides, there are inputs which cannot be imported. There are indirect inputs for which it would be impossible to work out any import our exporters to compete fairly with their counterparts abroad is to ensure that these basic goods are available to everyone?exporters, potential exporters and non-exporters?at international prices. There is another issue that needs resolution: rupee lending rates. Obvious comparisons crop up with foreign currency financing. However, while foreign currency loans are available at a spread over London, Inter-Bank Offered Rate (LIBOR) and US Treasury (UST) rate, the rupee funds will come only as a spread on Prime Lending Rates (PLR).
Capital Account: The Capital Account presents transfers of money and other capital items and changes in the country's foreign assets and liabilities resulting from the transac
Diseconomies of Scale A rises in a firm's cost of producing an additional unit as all another factors of production rising. Diseconomies of scale can be caused by poor and ine
What are the problems of interest for several reasons in cost minimization? Cost Minimization: A significant implication of the firm choosing a profit-maximizing producti
significance of income elasticity coefficient
Sources of monopoly power: The main sources of monopoly power include the following: (i) Control of the entire supply of a basic input . It only one firm has access to or co
what is the theory of second best? prove the theorem with the help of a diagram.
Development Administration: Since the Government has been entrusted to manage economic and business activities, it was found difficult to manage the economic policy with the t
Elasticity of Price Expectations (epe)
write down the assumotions and importance of game theory
How does the production possibilietes curve relate to present day economics?
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