Explore topic-wise InterviewSolutions in Current Affairs.

The market scenario in the world today is changing very rapidly.

Strategies of Recent Marketers:

1. Due to the development in information technology, transportation, liberalisation, their buying habits are varying. 

2. In the globalised business environment, the marketer must move goods faster and quicker to satisfy the needs of the customer. 

3. It is possible to carryout all the business transactions over an electronic network.

4. They use a variety of tools like computers, laptops, tablet or android phone devices to access different websites.

The types of Globalization are:

1. Economic Globalization: Countries integrating economically 

2. Social: Information and ideas integration socially all over the world. 

3. Political: Political co-operation between countries.

(a) (i) is correct

Globalization is the process of integrating various economies of the world without creating any barriers in the free flow of goods and services, technology, capital and even labour or human capital.

A. (iv) 

B. (iii) 

C. (i) 

D. (v) 

E. (ii)

1. New Economic Policy 

2. Globalization 

3. Theodore Levitt 

4. Three 

5. Archaic 

6. Modem 

7. Second 

8. Hellenistic 

9. 1602 

10. General Agreement on Tariffs and 

11. World Trade Organisation 

12. Cholas, Pallavas 

13. Red 

14. Europeans 

15. 1498 

16. Cochin 

17. Golden Fireman 

18. Fort St.George 

19. Triangular

20. 1668 

21. Golconda 

22. Pondicherry

Students can collect the pictures of various Multinational corporation companies (list is given in the text book itself) and paste the pictures and make an album.

Multinational corporation is a corporate organisation which owns or controls production of . goods or services in at least one country other than its home country. MNCs are also called Transnational corporation (TNG) or Multinational Enterprise (MNE). Most of the MNCs at present belong to the lour major exporting countries – USA. UK. France and Germany.

(a) (i), (iii), (iv) is correct

1. 1701 

2. Special Economic Zones 

3. 1994 

4. England 

5. 1991 

6. MNC 

7. Multinational Enterprise 

8. America 

9. 1991 

10. Business 

11. Foreign Contribution Regulation Act 

12. 1947 

13. 23 

14. 99 

15. various tariffs 

16. Geneva 

17. Uruguay Round 

18. WTO

19. Information with a commercial value 

20. Trade Related Intellectual Property Rights 

21. Trade Related Investment Measures 

22. Globalization 

23. TRIPs

(d) All the above

1. 1693 

2. Capital market 

3. Fort St. George 

4. January 1, 1995 

5. Prof. Theodore Levitt 

6. Pondicherry

Pondicherry was the headquarters of the French.

Initially Pondicherry was captured by the Dutch and later handed over to the French.

(d) Total value of goods and services

Correct option is D. Retrenchment

(c) GDP plus net factor income from abroad

Correct Answer is: (a) 65

(c) Product and Income method

(i) Gross National Product (GNP): It is the total value of goods and services produced and income received by the domestic residents of a country. It includes profit earned from capital invested abroad.

GNP = C + I + G + (X – M) + NFIA

(ii) Gross Domestic Product (GDP): It is the value of output of goods and service produced by the factors of production within the Geographical boundaries of a country.

GDP = GNP – NFIA

(iii) Net National Product (NNP): It is arrived by deducting Depreciation value from the Gross National Product.

NNP = GNP – Depreciation

(iv) Net Domestic Product ( NDP): It is arrived by deducting the value of depreciation from the Gross Domestic Product.

NDP = GDP – Depreciation

(v) Per-Capita Income: It is obtained by dividing the National Income by the population of a country.

PCI = N.I / population

In the above context,

C – Consumption expenditure

I – Investment expenditure

G – Government expenditure

NFIA – Net Factor Income earned from Abroad

Depreciation – Wear and Tear expenses

(vi) Personal Income: It is the total money income received by all the individual of a country from all possible sources before direct taxes.

PI = NI Corporate Income Taxes – Undistributed Corpo – rate profit – social security Contribution + Transfer payment

(vii) Disposable Income (DI): It means the actual income which can be spent on consumption by the people of the country.

DI = PI – Direct taxes

(c) Gross National Product

Commonly, National Income is called as GNP.

National Income is a measure of the total value of goods and services produced by an economy over a period of time, normally a year. National Income is also known as Gross National Product or GNP or National Dividend.

Correct Answer is: (a) Income

Developmental path based on GDP and employment:

1. In the development path of India, at first undertook the policy of closed trade. It means that trade and interaction with the outside world remained limited. 

2. In 1991, India finally decided to open its borders to free trade and liberalised its economy by allowing foreign companied to enter the Indian economy.

3. A thrust was given to employment generation under the Five Year Plans. Rural development was also given importance in India. 

4. The public sector was given significant importance. Private companies and industries were subject to strict regulations and standards. It was believed that the Government was the sole protector of the people and would work towards social welfare.

5. India has sustained rapid growth of GDP for most of the last two decades leading to rising per capita income and a reduction in absolute poverty. Per capital incomes have doubled in 12 years.

Agricultural Policy: It means a set of decisions and actions taken by the government relating to domestic agriculture and imports of agricultural products.

The policy mainly focus on the following areas:

(a) Risk Management and Adjustment 

(b) Economic Stability 

(c) Natural Resources 

(d) Environmental Sustainability 

(e) Research and Development 

(f) Market for domestic agricultural commoditie.

In general, the agricultural policy includes Price policy, Land Reform policy, Green Revolution, Irrigation policy, Food policy, Labour policy and co operative policy.

Industrial policy: It means a set of decisions taken by the government relating to industrial sector, domestic production, trade, self-sufficiency and modernisation.

The policy mainly focus on the following areas:

1. Employment generation 

2. Utilisation of Natural resources 

3. Boosting the other sector development

4. Research and Development 

5. Modernisation 

6. Environmental protection 

7. Trade 

8. Development of small scale industries.

In general, the Industrial policy include Textile Industry policy, Sugar industry policy, Price policy, Small scale industries policy, Industrial Labour policy.

New Economic Policy: The New Economic Policy was introduced in 1991 which includes LPG. LPG refers to Liberalisation, Privatisation and Globalisation. Therefore the policy is called LPG model.

The main objective of this model was to make the economy of India, the fastest developing economy of the world to become equal to the biggest economies of the world. Definitely, this model had influenced India’s Economic growth and development.

(d) Both (a) and (c)

(b) Intermediate

(c) Both (a) and (b)

The intermediate Goods value are indirectly included in the measurement of GDP.

(b) Portuguese

(a) Portuguese, Dutch, English, Danish, French

Pulicut was the headquarters of the Dutch in India.

(d) (i), (ii) is correct

Correct Answer is: (c) 1498 BC

(b) (i),(ii),(iii) and (iv) are correct

The Dames sold all their Indian settlements to the British.

Dutch East India company was formed in 1602. Dutch established factories at Masulipatnam, Pettapoli, Devanampattinam and with the help of King of Chandragiri Pulicut factory also. The commodities exported by the Dutch were Indigo, Saltpeter, Bengal raw silk. They captured Nagapatnam from Portuguese in 1659.

Correct Answer is: (b) SAIL

(d) Sony Corporation

Fair trade is an industrial arrangement designed to help producers in developing countries achieve better trading conditions. Fair trade is about better prices, decent working conditions and fair terms of trade for fanners and workers.

With fair trade, everyone is the beneficiary. Take examples of consumers, traders and producers.

(i) Consumers – Fair trade relationship provide the basis for connecting producers with consumer and for informing consumers of the need for social justice and the opportunities for change. Consumer support enables fair trade organisation to be advocates and campaigners for wider reform of international trading rules, to achieve the ultimate goal of a just and equitable global trading system. Shoppers can buy products in line with their values and principles. They can choose from an ever growing range of great products.

(ii) Traders / Companies – Since its launch in 2002, the fair trade mark has become the most widely, recognised social and development label in the world. Fair trade offers companies a credible way to ensure that their trade has a positive impact for the people at the end of the chain.

(iii) Producers – For producers fair trade is unique in offering important benefits: 

(a) stable prices that cover the costs of sustainable production,

(b) market access that enables buyers to trade with producers who would otherwise be excluded from market,

(c) partnership 

(d) empowerment of farmers and workers.

Fair Trade is about better prices, decent working conditions and fair terms of trade for farmers and workers.

Beneficiaries of Fair Trade practices:

Consumers:

1. Consumers are the main beneficiaries. 

2. This is because they can advocate and compare for wide reform of International trading rules. 

3. They can choose from growing range of great products. 

4. Consumers support producers by buying fair trade labelled products who are struggling to improve their lives.

Traders (or) companies:

1. Fair Trade offer companies a credible way to ensure that they have a positive impact. 

2. Launched in 2002, Fair Trade mark has become the most widely, recognized social and development label in the world.

Producers:

1. It gives the farmers / producers a kind of empowerment. 

2. Stable prices cover the cost of sustainable production. 

3. Buyers easily access the market and trade with producers, which in turn boost production..

When India was facing a down grading economic crisis situation, the government presented a budget in July 1991 for 1991-92 with a series of policy changes which underlined liberalization, privatization and globalization. This has come to be called as India’s New Economic policy.

The Foreign Contribution (Regulation) Act or FCRA, 2010 has been enacted the Parliament to consolidate the law to regulate the acceptance and utilisation of Foreign contributions or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.

Chettiars in Tamil Nadu are examples of early Traders.

Aggregate demand (AD) or domestic final demand (DFD) is the total demand for final goods and services in an economy at a given time. It specifies the amounts of goods and services that will be purchased at all possible price levels.This is the demand for the gross domestic product of a country. It is often called effective demand, though at other times this term is distinguished.

The aggregate demand curve is plotted with real output on the horizontal axis and the price level on the vertical axis. It is downward sloping as a result of three distinct effects: Pigou's wealth effect, Keynes' interest rate effect and the Mundell–Fleming exchange-rate effect. The Pigou effect states that a higher price level implies lower real wealth and therefore lower consumption spending, giving a lower quantity of goods demanded in the aggregate. The Keynes effect states that a higher price level implies a lower real money supply and therefore higher interest rates resulting from financial market equilibrium, in turn resulting in lower investment spending on new physical capital and hence a lower quantity of goods being demanded in the aggregate.

The Mundell–Fleming exchange-rate effect is an extension of the IS–LM model. Whereas the traditional IS-LM Model deals with a closed economy, Mundell–Fleming describes a small open economy. The Mundell–Fleming model portrays the short-run relationship between an economy's nominal exchange rate, interest rate, and output (in contrast to the closed-economy IS–LM model, which focuses only on the relationship between the interest rate and output).

The aggregate demand curve illustrates the relationship between two factors: the quantity of output that is demanded and the aggregate price level. Aggregate demand is expressed contingent upon a fixed level of the nominal money supply. There are many factors that can shift the AD curve. Rightward shifts result from increases in the money supply, in government expenditure, or in autonomous components of investment or consumption spending, or from decreases in taxes.

According to the aggregate demand-aggregate supply model, when aggregate demand increases, there is movement up along the aggregate supply curve, giving a higher level of prices.

The consumption function or propensity to consume refers to income consumption relationship. It is a “functional relationship between two aggregates, i.e., total consumption and gross national income.”

Symbolically, the relationship is represented as C= f(Y), where С is consumption, Y is income, and/is the functional relationship. Thus the consumption function indicates a functional relationship between С and Y, where С is the depend at and Y is the independent variable, i.e., С is determined by Y. This relationship is based on the ceteris paribus (other things being equal) assumption, as such only income consumption relationship is considered and all possible influences on consumption are held constant.

(c) Bangalore

(c) Both (a) and (b)