Causes of BoP Deficit (BoP Disequilibrium) The BoP deficit or Balance of Payment Disequilibrium occurs due to various factors, which may be economic or non-economic. In some cases, the economic factor may be dominant, while…
The effectiveness of fiscal and monetary policy depends upon the exchange rate system of the economy. If the exchange rate system is fixed, then monetary policy is ineffective; however, for a flexible exchange rate system,…
What is Dumping? Dumping is a practice of selling the product at a lower price in the foreign market than in the domestic market. So, it is a type of third-degree price discrimination where the…
What is Factor Pricing? Factor Pricing refers to the determination of the reward or payment given to the factors of production (land, labor, capital, and entrepreneurship) for their contribution to the production process. Suppose a…
In the previous post, we explained the causes of the BoP Deficit in Nepal. Now, we talk about how to adjust the BoP Disequilibrium. BoP disequilibrium refers to the situation of either a deficit or…
What is Balance of Payment (BoP) A balance of Payments is a systematic record of a country’s economic transactions with the rest of the world during a specific period. It records the inflow (receipts) and…
What is an Oligopoly Market? It is the market structure in which there are few sellers (two or more), a limited (or given) market, and almost identical, very close substitutes. Due to the given size…
Topic – Economy, Trade & Industry 1) Which of the following statements is normative? Large government deficits cause an economy to grow more slowly. People work harder if the wage is higher. The unemployment rate…
Nepal initiated to promote foreign investment formally by the enactment of the Foreign Investment Act 2038 BS. Probably it was the first attempt to attract foreign investment through a specific act in South Asia. However,…