ECONOMICS AND TRADE-2

16.  Pure monopoly : a pure monopoly exist if one and only one firm produces and sells a particular commodity in the market.

17.Oligopoly : It is a situation where a few large firms compete against each other, there is an element of interdependence in the decision making of these firms and market has subtentorial barrier to entry.

18. Gross profit : This refers to the difference between receipts and payments over time
Period.

19. Net profit: This refers to the difference between  gross profit  and implicit cost.

20. Break even point: It is that point of activity where total revenue and total expanses are equal. It is the point of zero profit.

21. Average rate of return : This is known as the accounting rate of return, return on investment (ROI) or return on assets  (ROA).It is obtained by dividing average annual post-tax profit by the average investment.

22. Capital budgeting : This is a decision making process concerned with whether or not (a)The firm should invest fund in an attempt to make profit and (b) How to choose among competing projects.

23. Net present value : A method of evaluation consisting of comparing the present value of all net  cash flows to the initial investment cost.

24. Payback period : A method of evaluating investment proposal which determines the time of project`s cash inflows will take to repay the original investments of the project.

25. GNP (Gross national product) : The most comprehensive indicator of the level of economic activity of an economy is its aggregate output, i.e. the total annual amount of finished goods and services known as Gross National Product.

26. Business cycle : It refers to the situation in the economic activity occurring regularly in the capitalist societies. This fluctuations are wave like   and cyclic in nature.

27. Balance of payments : It is a statement of all transactions between residents of a country and the residents of rest of the world.

28. Tariffy (Custom duty) : A duty or tax imposed  on a imported goods.

29.WTO : T he WTO (World Health Organization) is the only global international organization dealing with the rules of trade between nations. Its main function is to ensure that the trade flows as smoothly, predictably and freely as possible. Today WTO has 32 members with another 31 in the process of accession.

30. Monetary policy : It refers to the credit control measure adopted by the central bank of an  economy (RBI OF INDIA).These are of two kinds (a) Quantitative and general controls (b)Qualitative and selective controls.

31. Fiscal policy ; It refers to the deliberate changing of taxes and government spending for the purpose of keeping the actual GNP close to the potential full employment GNP.

32. Export Processing Zone (EPZ). A designated area that provides infrastructure facilities like sheds, power, water supply, banking etc. In addition to the whole range of fiscal incentives, the clearing agents and custom clearance facilities are also provided in this zone.

33. Full convertibility : When a currency can be converted  ( both on capital and current accounts) into foreign currency and can be used freely for payments without any limitations.

34. Globalization : This refers to the phenomenon of integration of an economy into the wold economy. This can be achieved by liberalizing imports and exports.
35. TRIMs: TRADE RELATED INVESTMENT MEASURES taken by WTO. Its main objective is the general elimination of quantitative restrictions on foreign investments.
36. Trade Related Intellectual Property Rights (TRIPRs ) : These are measures taken by WTO. These provide norms and standards for copyrighting and related rights , trader marks ,patents , industrial designs, geographical investments etc.

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