Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
TRADE AND DEVELOPMENT:
In the earlier Units of this block, you have learnt about the trade policy from historical perspective and the recent shift in policy during nineties. You have also learnt about the balance of payments problems in India. In this Unit we will recapitulate the problem of India's International Debt during seventies and eighties and then proceed to the issues of FDI, MNCs, export promotion and trade liberalisation'under WTO regime in India. As mentioned in the previous Unit, India had a problem of external payment during eighties. This was reflected in the sharply rising debt-service ratio that steadily rose from 16-18 percent in 1980-83 to 34-38 percent during the last three years of 1987-90. Apart from this, India's current account deficit (CAD) as a proportion of GDP was also increasing. It moved up sharply from an annual average of 1.3 percent during 1980-85 to 2.9 per cent in March 1989. The growing magnitude of CAD and rising CADIGDP ratio were posing the problems of financial constraints t6 meet the BOP deficit.
Falling foreign exchange reserves in relation to increasing import requirements was of the magnitude ofUS $15 billion over the first eight months of 1988-8.9. Evidently the country was depleting its foreign exchange reserves to meet the
ex temal liabilities. From what has been documented on the trends in India's balance of payments in the previous Unit, it is evident that by the early nineties the nation's current liabilities continued to be on the increase, with uncertainty and unpredictability in terms of maintaining the on-going pattern of financing through net private transfers. A rise in the CAD/GDP ratio on the one hand, reflected the growth in current external liabilities. Reliance on net private transfers as the major source of non-merchandise current earnings, on the other raised the question of the viability of the current mode of external financing. This was particularly serious in the face of the steady increases in interest liabilities. It was apparent that the nation would be soon compelled to accept further reductions in the flow of real transfers as a proportion of GDP. The need had thus arisen to find additional sources of finance in the capital market at terms which would not preclude the possibilities of securing a rise in real transfers.
factors that causes the shifts in balance of payments
Your Insurance firm processes claims through its newer, larger high tech facility and its older, smaller low-tech facility. Each month, the high-tech facility handles 10,000 claims
Including different interest rates with different maturities would complicate the models however it wouldn't buy you very much. Because interest rates with different maturities are
Crowding out would most likely occur when: A. the Congress enacts budget cuts to balance the budget. B. workers lose jobs as a result of anti-inflationary fiscal policies. C. the f
Government revenue, government spending and net exports G, NT and NX are exogenous variables in the classical model In the classical model (and
comparison between neoclassical factor endowment theory of international trade and classical labor cost theory of comparative advantage
He rapid growth of the national debt alarmed some politicians and created pressure for restricting Congress's unlimited ability to spend. Efforts to Reduce the Deficit, discuss the
Gross Domestic Savings Income not devoted to current consumption is saved. In an economy during a particular year some units will consume less than their income while some wil
Separation of growth and fluctuation It is very useful to separate the evolution of a variable which grows over time into a trend and fluctuations around the trend. The graphs
Evaluate your workplace and identify a group that has "power" in the organization. Analyze why the group is considered powerful. a. What are the elements that contribute to the gro
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd