Development Economics: Key Concepts, Reforms, and Global Issues
Critical Discussion of Land Reform Measures in Developing Countries
Land reforms in developing countries, aimed at addressing inequitable land ownership and control, have seen various approaches, including redistribution, tenancy reforms, and consolidation. While these measures have been intended to improve agricultural productivity, reduce poverty, and promote social justice, their effectiveness and impacts are often debated. Critically, the successes and failures of land reforms depend on a complex
Read MoreBusiness Combinations, Mergers, and Government Regulation
What is a Business Combination?
A business combination refers to the process by which two or more companies join together to form a single entity, either by merging, acquiring, or consolidating with each other. Business combinations can take different forms, including mergers, acquisitions, amalgamations, or takeovers. The goal is often to increase market power, achieve synergies, or expand operations.
Types of Business Combinations
Business combinations can be broadly classified into the following
Read MoreFailures of Planning and India’s 1991 LPG Economic Reforms
Failures of Pre-1991 Economic Planning
Increase in Poverty
- The number of people who fail to get the basic necessities of life was increasing.
- The policies adopted by the government till 1990 were very rigid and were unable to generate sufficient employment opportunities and income.
High Rate of Inflation
- Despite some progress shown by policies undertaken by the government till 1991, it was observed that the government could not control the persistent rise in prices.
- The price level increased from nearly
Global Economic Balances: Deficits, Surpluses, and Interest Parity
Balance of Payments: Deficits & Surpluses
If we sum all debits and credits in the current account, private capital account, and public capital account, the total should theoretically be zero. However, this seldom happens in practice. Numerous transactions are missed or intentionally hidden from the accounting process.
If the sum of credits and debits in the current account, private capital account, and public capital account is not zero, an offsetting entry, known as the *statistical discrepancy*
Read MoreStrategic Product & Pricing: Market Positioning & Competitive Advantage
Product Mix Strategy & Customer Perception
The products or services of an organization help to create the firm’s image in the mind of the customer. This image is reflected in the customers’ perceptions and feelings about its products or services. It is important, since experience with only one of a firm’s products or services can affect a person’s attitude toward the firm’s other offerings. This can apply even if the customer has never used the other products.
Products are more than tangible
International Trade, Globalization, and Environmental Policy
Ricardian Model of International Trade
The Ricardian model explains international trade as a result of differences in labor productivity. It highlights:
- Market mechanisms that allow specialization in sectors with a comparative advantage.
- How international trade is organized for mutual benefits.
Let’s imagine that the world only produces cheese and wine, and is composed of two countries: the domestic and the foreign one. There are obvious gains from trade if the domestic country can only produce cheese
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