Facts And Figures Of Global Economics

INTERNATIONAL CAPITAL MOVEMENTS INTRODUCTION  We find enormous increase in international movement of capital. This phenomenon has received a great deal of attention from not just economists and policy-makers but people in different walks of life including workers' organisations and members of civil society.  TYPES OF FOREIGN CAPITAL The term'foreign capital' is a comprehensive one and includes any inflow of capital into the home country from abroad and therefore, we need to be clear about the distinction between movement of capital and foreign investment. Foreign capital may flow into an economy in many ways. Some of the important components of foreign capital flows are: (1) Foreign aid or assistance which may be: (a) Bilateral or  direct inter government grants (b) Multilateral aid from many government who pool funds to a international organizations like the World Bank (c) Tied aid with strict mandates regarding the use of money or unitied aid where there are no such sti...

INTRODUCTION Money is at the centre of every economic transaction and plays a significant role in all economies. In simple terms money refers to the assets which are commonly used and accepted as a means of payment or as a medium of exchange or of transferring purchasing power. For policy purposes, money may be defined as the set of liquid financial assets, the variation in the stock of which will have impact on aggregate economic activity. Money has generalized purchasing power and is generally acceptable in settlement of all transactions and in discharge of other kinds of business obligations including future payments.  For example, a bill of exchange may also be a medium of exchange, but it is not money since it is not generally accepted as a means of payment.  Money is a totally liquid asset as it can be used directly, instantly, conveniently and without any costs or restrictions to make payments. At the fundamental level, money provides us with a convenient means to acces...

A Complete Information Of   National Income INTRODUCTION When we undertake the study of national economics, we are interested in macroeconomics aggregates such as, aggregate income, output, employment, prices, consumption, savings, investment etc. Just as there are accounting conventions, measure the performance of business, there are conventions for analyzing the economic performance of a nation.  National income means the net value of final  goods and services produced within the domestic territory of a country in an accounting year plus the net factor income from abroad.  The basic fundamental principle of national income is based on the following basis:                         In a nation Production=Sale=Income ∴ GDP:  The aggregate value of all the final goods and services produced in the domestic territory of the country during a period, generally a year. Domestic territory is defined to incl...

CHAR TERED ACCOUNTANCY COURSE what is Chartered Accountancy?   It is a designation given to an accounting professional who has received a certification from statutory body. It is one of the respectful and challenging career fields. CA is a good career field in India. Everyone can do CA Course after 12th related to any subject. The CA exams conducted by Institute Of Chartered Accountants Of India (ICAI). ICAI is also known as the mother body of Chartered Accountant Of India. The CA course started in 1st JULY 1949. It took the 5 years to complete the CA course. By the year 2006, the ICAI has launched the three level of this challenging course. The CPT is the entity- level FOUNDATION level involves the quantitiative aptitude test, general economics, laws and accounting with written examination. This course sharps your knowledge as well as skills. You will not be jobless after becoming a CA. No unemployment faced by any person because after doing this course you gain a vast knowledge i...

EXCHANGE RATE AND ITS ECONOMIC EFFECTS INTRODUCTION Each day we get fascinating news about currency which fuel our curiosity, such as Rupee gains 12 paise against US Dollar Spot/Forward Rates plummet, Rupee down, Euro holds steady, Pound strengthens etc. Ever wondered what these and other jargons mean? We shall try to understand a few fundamentals related  to currency transactions. The demand for supply of domestic currency. It is not domestic currency alone that we need. Households, businesses and governments in India, for example, buy different types of goods and services produced in other countries. Similarly, residents in India. Foreign investors, businesses, and government invest in our country, just as our nationals invest in other countries. In the same way, lending, and borrowing also take place internationally. These and similar other transactions give rise to an international dimension of money, which involves exchange of one currency for another. Obviously, this entails ...

HUMAN CAPITAL FORMATION Human capital refers to the stock of 'skill and expertise' of a nation at a point of time in the economy. It is the sum total of skill and expertise of engineers, doctors, professionals, professors and workers of all types who are engaged (or have the capacity and expertise to be engaged) in the process of production in the economy. Human capital formation is also refers to the process of adding to the stock of human capital over a period of time. Human Capital is Different from Physical Capital and Financial Capital • Physical capital formation refers to the produced means of production in the economy. Stock of physical capital measures production capacity of a nation. • Financial capital refers to paper claims against physical capital. • Human capital refers to skill and expertise acquired by man over time. Human capital is the cause behind physical capital. Indeed, it is the ultimate cause of an exponential pace of growth and development in advanced e...

New Economic Policy 1991 Economic Reforms - Economic reforms refer to a set of economic policies or economic decisions which is directed to accelerate the pace of 'growth and development' in the country's economy. In 1991, the Government of India initiated a series of economic reforms to pull the economy out of the crises of 90's. These reforms came to be known as New Economic Policy (NEP). Three broad components of NEP are: The policy of liberalisation (L) in place of licensing for the industries and trade. The policy of privatisation (P) in place of quotas (Q) for the industrialists, and The policy of globalisation (G) in place of permits (P) for exports and imports in the country. Thus, LPG was set to replace LPG in 1991. ELEMENTS OF NEP (NEW ECONOMIC POLICY) Liberalisation Privatisation Globalisation Let us discuss these elements in detail: Liberalisation   Liberalisation of the economy means freedom of the producing units from direct or physical controls imposed b...

The Central Bank The central bank is an apex bank that controls entire banking system of a country. Central bank is the sole agency of note issuing in the country and controls the supply of money in the economy. Central bank of the country serves as a banker to the government and manages forex (foreign exchange) reserves of the country. Reserve Bank of India is the central bank of India which is established in 1935 under the Reserve Bank of India Act, 1934. Functions of the Central Bank Principal functions of the central bank as under: Bank of issuing Notes: Central bank of a country has the exclusive right or monopoly right of issuing notes in the economy. This function of issuing notes is known as Currency Authority function of the central bank. The notes issued by the central bank in the economy are an unlimited legal tender (coins are not included). Banker to the Government: Central bank is a banker to the government, and also agent, and financial advisor to the government. As a ...

Control Of Money Supply By The Central Bank                             The central bank of the country adopts various measures to handle or control the supply of money in the economy. Largely, these measures relate to credit supply of the commercial banks. These are broadly classified as: Quantitative Instruments, and Qualitative Instruments. (A) Quantitative Instruments Of Credit Control Qualitative Instruments are those instruments of credit control which focus on the overall supply of money in the economy. Supply of money is lowered to tackle inflation, and it is raised to tackle deflation. Following are the points which are used in quantitative instruments of credit control in the economy:- Bank Rate: Bank rate refers to the rate of interest at which the central bank lends money to the commercial banks. It relates to instant (immediate) loan requirement of the commercial banks. When bank rate is increased, marke...

China: According to the exchange data, the people's bank of china i.e. the central bank of china bought 1.01% stake in Indian bank i.e. HDFC Bank in the month of April, 2020. The number of shares which they bought earlier is 1,74,92,909 i.e. around 1.75 crores share of HDFC Bank. HDFC Bank - Private Sector Bank                             Now, the central bank of the China or the people's bank of China is going to sell his all stakes of HDFC bank that is 1.01%. People's starting boycott china products in India. This will surely affects Chinese companies revenue as well as their maintained reputation.   What was the reason behind selling HDFC bank shares? As we all know, 20 Indian arms killed by the China arms in the Galwan valley, India. Because of this incident boycott China products started in India and Indian goverment bans 59 Chinese apps (including tiktok) and cancelled future deals with China. Indian ...

Do You Know That Today Is World's Population Day? Celebrating World Population Day                             Date: 11/07/2020 Total World's Population: 776.70 Crores Total India's Population: 138.30 Crores (17.7% of the World's Population) Let's discuss about the history of the world's population which is amazing fact and it's also important to know how the population grows year by year in double growth rate: • The first 100 crores world's population is completed in the 18th century. • Then, next 100 crores world's population is completed in the financial year 1940. It means it was taken only 140 years to complete next 100 crores population. Hence, we completed total 200 crores world's population in 1940. • Next 100 crores world's population is completed in the financial year 1964. It signifies that it was taken only 24 years to complete next 100 crores world's population. Hence, in the financial year 1964 we com...

               China:  On 16th November, 2002, the SARS (Severe Acute Respiratory Syndrome) pandemic outbreaks from the China. The first outbreak had been founded on 16th November, 2002, Guangdong, China. It impacted the whole China's GDP in the financial year 2002-2003. It also impacted heavy losses to the Hong Kong's and Taiwan's GDP. Real Statistics Data Of SARS SARS outbreak: 16 Nov. 2002-19 May, 2004 World-wide Total Active Cases: 8437 World-wide Total Deaths: 813 How much it impacted to the world's economy? According to the World Bank, the Gross World Product (GWP) in the financial year 2002 was $23 trillion USD in nominal terms, world trade growth had increased to 3 per cent, world output had increased to 1.5 per cent. Later, In the financial year 2003, the GWP had increased to 2.90 per cent. During the financial year 2004, the GWP was $51.48 trillion USD in nominal terms. According to the statistics of the world's economy of the finan...

                                Before 1947, India was ruled by the British government. Britishers do all the things which is profited for their country i.e. Britain. Britishers had cheated and fraud with the Indian economy before the independence of the India. Let us discuss the main features of the Indian economy before the independence of the country:- Stagnant Economy   :-   In ancient times, when there was a British rule in India, Indian economy was completely a stagnant economy. A stagnant economy is the economy which shows little or no growth in income. In the year between 1865-1925, the growth rate of per capita income in India as low as 0.5 per cent per annum and between 1925-1950 it was just about 0.1 per cent per annum.                                                ...