* Introduction * Definition * Types * Arguments for Free trade * Arguments against Free trade * Arguments for Protectionism * Arguments against Protectionism * Free Trade versus Protectionism * Conclusion * Bibliography…
The author is an Assistant Professor at the Department of Economics, University of Dhaka. For a list of trade liberalisation indicators in a cross-country context see Appendix 1.…
4. Simplification of the application procedure for availing various benefits 5. To set in motion the strategies and policy measures which catalyse the growth of exports To encourage exports through a "mix of measures including fiscal incentives, institutional changes, procedural rationalisation and efforts for enhance market access across the world and diversification of export markets.…
FISCAL/BUDGET DEFICIT: FISCAL DEFICIT MEANS GOVERNMENT EXPENDITURE IS MORE THAN ITS REVENUES. THE GOVERNMENT HAS TO BORROW TO MEET ITS EXCESSIVE EXPENDITURE LEADING TO GOVERNMENT ABSORBING HIGHER PORTION OF DOMESTIC SAVINGS AND HIGHER INTEREST RATES. THIS IN TURN LEADS TO CROWDING OUT OF PRIVATE SECTOR INVESTMENT IN THE ECONOMY. HIGHER INTEREST RATES, IN TURN LOWERS THE PRIVATE SECTOR INVESTMENT AND CONSUMPTION LEVELS. IN MANY ECONOMIC HISTORY CASES, WE HAVE SEEN GOVERNMENTS RESORTING TO PRINTING PRESS TO MANAGE THEIR DEFICITS LEADING TO HYPERINFLATION AS SEEN IN CASES OF GERMANY, HUNGARY AND ZIMBABWE.…
Economic historians and analysts have been faced with a conundrum for quite some time. They found it hard to comprehend that South Asia, which was a single large market until a few decades ago with goods, services, capital investment and skilled labor flowing freely and the newly independent countries inheriting a common historical, legal, cultural and administrative background and a very well linked infrastructure was the least integrated region in the world while East Asia with countries having such diverse background and very little in common historically had become the most integrated region second after the European Union. Moreover, there was almost a consensus among academic economists in both the countries that the normalization of trade relations would bring substantial economic benefits evenly. Among many reasons responsible for this puzzle the political tension and rivalry between the two major countries of the region-- India and Pakistan—stands out as the main explanatory variable.…
India has been described as an ‘import substituting country par excellence’. A balance of payments crisis in 1991 led to the initiation of an ongoing process of trade liberalization. These events corrected the in-built systemic bias against exports and they have led to a degree of correction of the price distortions in the Indian economy through the creation of a more open economy. More importantly, increased competition and the presence of firms from foreign markets has injected a greater degree of quality consciousness and customer orientation, which has been largely absent due to the lack of competitive pressures. In the past there were few foreign firms present in the protected domestic Indian market. These changes have reduced the tendency of…
The scope of the project aims to analyze the bilateral trade relations between India-US. Indian and USA’s governments are currently pursuing a “strategic partnership” based on numerous overlapping interests and improved economic and trade relations. India is in between a rapid economic expansion, and many US companies view India as a potential market for foreign investment. US have the highest market share (11.82%) of Indian exports and ranks 4th in the list of importers having a market share of 5.19% in the year 2012-13. The bilateral trade has increased from $5.6 billion in 1990, to $62.9 billion in 2012 representing an impressive 1023.2% growth in a span of 22 years. India’s exports to the US grew from $12.84 billion during the period January- April 2012 to $13.74 billion during the period January- April 2013 whereas US exports of merchandize to India grew by 4.36% from $6.54 billion during the period January- April 2012 to $6.82 billion during the period January- April 2013.…
Lemke, D. (2010), Dimensions of Hard Power: Regional Leadership and Material Capabilities, in: Flemes, D. (ed.), Regional Leadership in the Global System: Ideas, Interests and Strategies of Regional Powers, Farnham: Ashgate.…
India has now established itself as an important component in the globalization machinery with the introduction of various trade and investment policies and the regulatory environment globally in the past decade, including trade policy and tariff liberalization, easing of restrictions on foreign investment and acquisition in many nations, and the deregulation and privatization of many industries.1.…
According to the open trading system of World Trade Organization (WTO), India government amends its Export and Import policy (EXIM policy) to be more flexible in recent years. (BUSINESS.GOV.IN, 2013) It facilitates the sustained growth in imports of India to achieve larger percentage share in the global merchandise trade. Moreover, India’s customs tariff rates have been declining since 1991. The “peak” rate has come down from 150% in 1991 and 1992 to 40% in 1997 and 1998. The downward momentum was reversed the next year with the imposition of a surcharge. This momentum has resumed with the reduction of the “peak” rate to 35% in 2001 and 2002 and 30% in 2002 to 2003. (Custom-duty, 2012) As the India’s import tariff is decreased, it attracts many investors to enter in India retail market.…
The South Asian Association for Regional Cooperation was established on 8 December 1985 by the 7 governments representing India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan & SriLanka. Afghanistan was added to the regional association in April 2007 and SAARC is headquartered in Kathmandu, Nepal. The objectives of this SAARC association are to promote the welfare of the peoples of SOUTH ASIA and to improve their quality of life. To accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realise their full potentials. To promote and strengthen collective self-reliance among the countries of SOUTH ASIA. To contribute to mutual trust, understanding and appreciation of one another's problems. To promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields. To strengthen cooperation with other developing countries. To strengthen cooperation among themselves in international forums on matters of common interests and to cooperate with international and regional organisations with similar aims and purposes.…
Secondary steel making processes are then applied to make fine adjustments to the steel composition, temperature and cleanness.…
The origin of India’s foreign trade can be traced back to the age of the Indus…
In the last five years India’s exports witnessed robust growth to reach a level of US$ 168 billion in 2008-09 from US$ 63 billion in 2003-04. India’s share of global merchandise trade was 0.83% in 2003; it rose to 1.45% in 2008 as per WTO estimates. India’s share of global commercial services export was 1.4% in 2003; it rose to 2.8% in 2008. India’s total share in goods and services trade was 0.92% in 2003; it increased to 1.64% in 2008. On the employment front, studies have suggested that nearly 14 million jobs were created directly or indirectly as a result of augmented exports in the last five years.…
Over the years, India’s exports AND imports grew vastly, proving a stable country for the people, and for the economy, considering the cost of imports and the price of exports most probably balanced themselves out…