Economy

Net domestic product (NDP) represents the net book value of all goods and services produced within a nation’s geographic borders over a specified period of time. Net domestic product provides insight into the age or obsolescence of a country’s assets, as well as how much the country has to spend to maintain its current GDP. After all, if the country … Read more

Merger: It is a process wherein two or more companies are combined together to form either a new company or an existing company absorbing the other target companies. Amalgamation: It is a process wherein two or more companies combine to form an entirely new company. Acquisition: It is a process wherein one company purchases most … Read more

When in an economy aggregate demand falls short of aggregate supply at full employment level, i.e. the production is more than the demand, the demand is said to be deficient demand and the gap is called deflationary gap. Causes of the deflationary gap are: Fall in aggregate demand (AD) due to: Fall in exports (global … Read more

The interest rate fluctuation impacts foreign investment in India. The developing countries like India tend to have a higher interest rate than those developed countries. The foreign investment institutes such as FIIs (Foreign Institutional Investors) borrow money from their domestic market at a low-interest rate and invest it in countries like India where the interest … Read more

A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee. In other words, it is a transferable, signed document that promises to pay the bearer a sum of money at a future date or on-demand. The payee, who is the person receiving the payment, must … Read more

Infrastructure is the term for the basic physical systems of a business or nation. Transportation, communication, sewage, water, and electric systems are all examples of infrastructure. These systems tend to be high-cost investments and are vital to a country’s economic development and prosperity. Grant of infrastructure status enables the industry to raise money from insurance … Read more

Cost-push inflation occurs when overall prices increase due to increases in the cost of production. Higher costs of production can decrease the aggregate supply (total production) in the economy. If the demand remains unchanged, the prices of commodities increase causing a rise in the overall price level which then is passed on to consumers creating … Read more

Foot loose industries can be located in a wide variety of places. They are not dependent on any specific raw material, weight losing or otherwise. They largely depend on component parts which can be obtained anywhere. They produce in small quantity and also employ a small labour force. These are generally not polluting industries. The … Read more

The Act is expected to re-establish the rule of law with respect to the fugitive economic offenders as they would be forced to return to India to face trial for scheduled offences. This would also help the banks and other financial institutions to achieve higher recovery from financial defaults committed by such fugitive economic offenders, … Read more

A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control. Foreign direct investment (FDI) in India is a major monetary source for … Read more