Composition of India's Foreign Trade - Import and Exports

Introduction to India's Foreign Trade ↓
Foreign Trade is one of the significant macro fundamental variable of an economy. India till recently was predominantly a primary goods exporting and mainly an industrial goods importing country.In 1950s, India's share in the world trade was 1.78% which was decline to 0.59% in 1990 and continues to remain around 0.60% till now. India's share in world

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GATT Rounds - Emergence of World Trade Organisation WTO

The Second World War ended in Europe in May 1945. After its end, some countries in the world soon realised the importance and need of international trade. Later, after a period of two years, these countries finally came together and started discussing important plans with an intension to promote global trade. As a result, the General Agreement On Tariff and Trade (i.e GATT) was first signed by 23

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Factors That Determine Stress Vulnerability of the Employees

Factors Deciding Stress Vulnerability of Employees
Some employees are more vulnerable to stress as compared to others. Stress Vulnerability of employees depends upon three main factors like stress threshold, type of person they are and their control on work methods.Image Credits © Anhtu
1. Stress Threshold - Low and High ↓
Stressors are the factors that cause stress. Stress Threshold is the

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Relationship Between Stress and Job Performance

Stress can be either helpful or harmful to job performance, depending upon its level. When stress is absent, it limits job challenges and performance becomes low. As stress increases gradually, job performance also tends to increase, because stress helps a person to gather and use resources to meet job requirements.Image Credits © Wilson BantaConstructive stress inculcates encouragement among

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Frustration - Types of Reaction and Causes of Frustration

Meaning of Frustration ↓
Frustration is one of the causes of stress. It arises when one's motivation to achieve a desired goal is blocked. For example, an employee wants to finish a report before the end of the day but finds that something or the others keep interrupting him at work. This can lead to his frustration.Image Credits © Sybren A. Stüvel
Types of Reactions to Frustration ↓
The

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What is Stress? Meaning, Definition and Causes of Stress

What is Stress? Meaning
Stress is a general term applied to various mental and physiological pressures experienced by people feel in their lives.
Image Credits © Queen Roly
Definition of Stress
Stress may be defined as "a state of psychological and / or physiological imbalance resulting from the disparity between situational demand and the individual's ability and / or motivation to meet those

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WTO TRIPs - Trade Related Intellectual Property Rights

The importance of intellectual property rights (IPRs) in international trade is increasing day by day. The agreement on Trade Related Intellectual Property Rights (TRIPs) establishes standards for the protection of intellectual property rights including patents, industrial designs, trademarks and copyrights. The Trips agreement is an important aspect of the WTO.Image Credits © World Trade

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Management Is An Innovative Art That Inculcates Creativity

According to Harold Koontz, Mary Parker Follett and other notable thinkers, "Management is an art of getting things (i.e work, task) done through people."So, Is Management really an innovative Art that inculcates Creativity?Image Credits © CMI ManagersBefore we arrive at our conclusion, let's find out whether management is really an art or not by discussing and analysing following important

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Insurance Terms, Glossary and Dictionary - Terms of Insurance

1. Insurer
The company which issues insurance policy is called insurer. Insurance company is also called assurer or underwriter. Insurer agrees to pay compensation on the happening of uncertain and unfortunate event.Image Credits © Alan Cleaver
2. Insured
The person who is protected against uncertain losses and who is paid a compensation by the insurance company is called insured or assured. He

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Principles of Insurance - 7 Basic General Insurance Principles

Understanding Principles of Insurance
The main objective of every insurance contract is to give financial security and protection to the insured from any future uncertainties. Insured must never ever try to misuse this safe financial cover.Seeking profit opportunities by reporting false occurrences violates the terms and conditions of an insurance contract. This breaks trust, results in

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Ohlin's Modern Theory Vs Classical Ricardian Theory

Comparison - H.O Theory Vs Ricardian Theory ↓
The advantage or superiority of Ohlin's Modern Theory over the Ricardian Classical Theory of international trade gets highlighted from the following important points of comparison. 1. No difference among internal and international trade
According to the Classical economists, there is a need for a separate theory of international trade because of the

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Ohlin's Factor Price Equalization Theorem with Diagram

Ohlin's Factor Price Equalization Theorem
In International Trade, commodities move instead of factors.According to Bertil Ohlin,"Commodity movement acts as a substitute for factor movement in bringing about factor price equalisation."Image Credits © Butler University.In a two country model with relatively large differences in their endowments (capital and labour), prior to trade the prices of

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Heckscher Ohlin's (HO) Modern Theory of International Trade

Introduction To Heckscher Ohlin's H-O Theory ↓
The Modern Theory of international trade has been advocated by Bertil Ohlin. Ohlin has drawn his ideas from Heckscher's General Equilibrium Analysis. Hence it is also known as Heckscher Ohlin (HO) Model / Theorem / Theory.According to Bertil Ohlin, trade arises due to the differences in the relative prices of different goods in different countries.

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Fiscal Responsibility and Budget Management FRBM Act 2003

Concerned over the worsening of fiscal situation, in 2000, the Government of India had set up a committee to recommend draft legislation for fiscal responsibility. Based on the recommendations of the Committee, Government of India introduced the Fiscal Responsibility and Budget Management (FRBM) Bill in December 2000. In this Bill numerical targets for various fiscal indicators were specified.

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Scope of Commerce means Coverage of Commerce

Scope of Commerce
Scope of commerce means or implies the coverage of commerce.The scope of modern commerce has become very wide, perhaps it has no boundary at all, because it has crossed the boundaries of nations, and it has acquired an international status.Scope of commerce includes the role played by trade and aids to trade, banks and insurance companies; transport and advertising agencies

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Fiscal Crisis In India - Indicators, Causes and Consequences

What is Fiscal Crisis ?
The fiscal imbalance takes place when the government expenditure exceeds government revenue. This fiscal imbalance is also refered as the fiscal crisis.In 1980, the growing burden of non-development expenditure caused deterioration in the fiscal situation of India. Later this resulted in a fiscal crisis at the beginning of 1991-1992.
Indicators of Fiscal Crisis ↓
The

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Measures To Overcome Fiscal Imbalance In India - Fiscal Policy

Measures To Overcome Fiscal Imbalance In India ↓
Fiscal imbalance takes place due to excess of government expenditure over revenue. To overcome the deficit, government resort to borrowings. This further aggravates the situation of debt servicing.Therefore there is a need to correct and overcome the fiscal imbalance.The fiscal imbalance can be corrected by adopting following two methods:-Reducing

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Fiscal Policy Meaning - Its Main Objectives In India - Conclusion

Meaning of Fiscal Policy ↓
The fiscal policy is concerned with the raising of government revenue and incurring of government expenditure. To generate revenue and to incur expenditure, the government frames a policy called budgetary policy or fiscal policy. So, the fiscal policy is concerned with government expenditure and government revenue.Image Credits © Center for American Progress.Fiscal

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What is Commerce ? Meaning and Importance of Commerce

Meaning of Commerce
Commerce is a branch of business. It is concerned with the exchange of goods and services. It includes all those activities, which directly or indirectly facilitate that exchange.Image Credits © Senator Mark Begich.Commerce looks after the distribution aspect of the business. Whatever is produced it must be consumed, to facilitate this consumption there must be a proper

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What Are Aids To Trade In Commerce ? Meaning and List

What are Aids To Trade in Commerce ? Meaning ↓
Trade or exchange of goods involves several difficulties, which are removed by auxiliaries known as aids to trade. It refers to all those activities, which directly or indirectly facilitates smooth exchange of goods and services.Aids to trade includes Transport, Communication, Warehousing, Banking, Insurance, Advertising, Salesmanship, Mercantile

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What is Trade? Meaning and Nature - Different Types of Trade

What is Trade? Meaning and Nature
Trade refers to buying and selling of goods and services for money or money's worth. It involves transfer or exchange of goods and services for money or money's worth. The manufacturers or producer produces the goods, then moves on to the wholesaler, then to retailer and finally to the ultimate consumer.Image Credits © Sophie Atkinson.Trade is essential for

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What is Industry ? Meaning - Classification Types of Industries

What is Industry ? Meaning ↓
The production side of business activity is referred as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products.Image Credits © Barrie Caveman.The products are consumer's goods as well as producer's goods. Consumer goods are goods, which are used finally by consumers. E.g. Food grains, textiles,

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What is Business? Meaning Definitions Features of Business

What is Business? Meaning
Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.
Image Credits © Mohddeeb.
Business is an economic activity, which is related with continuous and regular production and

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What Are Economic Activities ? Types of Economic Activities

What are Economic Activities ? Meaning ↓
Economic activities are related to production, distribution, exchange and consumption of goods and services.The primary aim of the economic activity is the production of goods and services with a view to make them available to consumer.Image Credits © Chigmaroff."Human activities which are performed in exchange for money or money's worth are called

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How To Export Goods From India? Steps for Exporting Goods

Step 1. Receipt of an order
The exporter has to get himself registered with various authorities like RBI, income tax authorities, etc. In addition, he has to appoint agents or distributors for collection of orders from foreign countries. Exporter receives an order from importer directly or through Indent House.
Step 2. Obtaining License and Quota
After obtaining order, exporter has to secure

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How To Import Goods In India ? Procedure For Importing Goods

Procedure of importing goods means the orderly steps to be taken for importing goods from aboard. This import procedure is quite lengthy and time consuming as various formalities are required to be completed.

Step 1. Obtaining import license and quota
In all countries there are many government regulations to be followed. Sanction of government is necessary. Importer has to apply to the

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What is Foreign Trade ? Types and Importance of Foreign Trade

What is Foreign Trade ? External Trade Meaning ↓
Foreign trade is nothing but trade between the different countries of the world. It is also called as International trade, External trade or Inter-Regional trade. It consists of imports, exports and entrepot. The inflow of goods in a country is called import trade whereas outflow of goods from a country is called export trade. Many times goods are

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Documents Used In Foreign Trade Transactions - Shipping

The Shipping Documents Used In Foreign Trade ↓
Following is a list of various types of documents used in foreign trade transcations. The documents are related to either export trade or import trade.
Image Credits © Whitecat Singapore.
1. Indent
Indent is an order placed by the importers to the exports. It contains the essential information regarding the goods to be imported i.e. quality,

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Reserve Bank of India Bankers Bank - RBI Lender of Last Resort

Reserve Bank of India Works As A Bankers' Bank ↓
The Reserve Bank of India i.e RBI is the central bank of our country. It was established in the year 1935, under the Reserve Bank of India Act, 1934.
Being a central bank, RBI has control over the entire currency and banking system in India. It acts as a banker to both the state and the central government in India. It has the exclusive right to

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Why A Crossed Cheque is Safer Than A Bearer Cheque?

A Crossed Cheque is Safer Than A Bearer Cheque
When a cheque is crossed, the holder thereof cannot encash it at the counter of the bank. Encashment at the counter of the bank is possible only in the case of an open cheque, i.e. a bearer cheque or an uncrossed cheque.
Image Credits © Investing Thesis.
The holder of a crossed cheque has to present the same to his bank for collecting its amount

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Bank's Demand Draft - Mail & Telegraphic Transfer - Overdraft

1. What is a Bank Draft or Demand Draft ?
Bank Draft is also called as Demand Draft, in short, DD. DD is a special type of cheque. It is drawn by a bank on any of the branches of the same bank. It is used for remitting money from one place to another place. It is the cheapest mode of sending money. It is an order to pay money on demand.Image Credits © Tuxedo Travels.The person who wants to send

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What is Budget Deficit ? Types of Budgetary Deficit - India Trends

What is a Budget Deficit ? Meaning ↓
When the government expenditure exceeds revenues, the government is having a budget deficit. Thus the budget deficit is the excess of government expenditures over government receipts (income). When the government is running a deficit, it is spending more than it's receipts.Image Credits © Alex Grech.The government finances its deficit mainly by borrowing from

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The Budgetary Trends In India Budget - 1990-91 and 2005-06

Image Credits © Soumik Kar.
A. Trends in Revenue Budget ↓Revenue Receipts : They consist of tax and non tax revenue. Revenue receipts have increased from Rs. 54,954 crores in GDP in 1990-91 to Rs. 3,43,833 crores in 2005-06. Revenue receipts were 9.7% of GDP in 1990-91 and 9.6% in 2005-06. The share of tax revenue in the total revenue receipts was 81% in 2006-07.
Tax Measures and Reforms :

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