02Dec 2018 by admin

What are the Merits and Demerits of Monopoly Market? – Answered!

Investment
Merits and Demerits of Monopoly Market are described below:Before we get carried away with some of the negative features of monopoly, let us look at its positive features too. A monopoly possesses the following merits. (i) Potential to stand depression: Due to its extensive financial resources, a monopoly firm can survive the shocks of falling prices and the consequential losses, which, to small sized competitive firms, prove fatal during the period of depression. ADVERTISEMENTS: Small competitive firms close down due to losses, while monopoly firms not only fare through them but even succeed in maintaining the price level. Image Source: lionsheartcounseling.com (ii) Potential for Research and Development: Due to its large financial resources, a monopoly can introduce any type of invention or improved technology which is deemed crucial for its…
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02Dec 2018 by admin

What are the 3 Main Functions of Primary Market? – Expaliend!

Finance
The main functions of primary market are described below: 1. Organisation of New Issues: The organisation of new issues requires investigation of viability and prospects of new projects. An important element of the organisation of new shares is the knowledge about adequacy and structure of financial arrangements.The structure of financial arrangements involves requirements and availability of promoter’s equity, equity from public, debt-equity ratio short term funds, liquidity ratio, and foreign exchange requirement. All this requires a careful study of the new issue by competent and well trained staff. Image Source: wallworkshop.com 2. Underwriting of New Issues: ADVERTISEMENTS: Another step involved in floating a new issue is its underwriting. The term underwriting means guaranteeing purchase of a specified amount of new issue at a fixed price. The purchase may be for…
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02Dec 2018 by admin

Essay on International Criminal Law and International Criminal Court

Trade
Here is your essay on International Criminal Law and International Criminal Court in Present Age:International law is a body of rules and principles which regulate the conduct and relations of the members of international community there are many factors which led to the development of law in 19th and 20th centuries. ADVERTISEMENTS: The relation of the state and their mutual contracts has greatly increased during the said period and many rules and principles were formulated on the basis of the practice of states and the needs and requirements of the changing times and circumstances in this period witnessed the birth, growth and development of public International Law as a universal face or a legal system to reckon with.The modern International Law as a definite branch of jurisprudence there has been…
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02Dec 2018 by admin

Advantages and Disadvantages of Foreign Trade in India – Explained!

Economic Development
Main Advantages and Disadvantages of Foreign Trade in India are described below: Advantages: 1. Optimal use of natural resources: Foreign trade helps each country to make optimum use of its natural resources. Each country can concentrate on production of those goods for which its resources are best suited. Wastage of resources is avoided. Image Source: civilengineeringbasic.com ADVERTISEMENTS: 2. Availability of all type of goods: It enables a country to obtain goods, which it cannot produce or which it is not producing due to higher costs, by importing from other countries at lower costs.3. Specialisation: ADVERTISEMENTS: Foreign trade leads to specialization and encourages production of different good in different countries. Goods can be produced at comparatively low cost due to advantages of division of labour.4. Advantages of large-scale production: Due to…
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02Dec 2018 by admin

7 Important Demerits of Free International Trade

Budget
The important demerits of free international trade are listed below:(i) Free trade works against developing countries. Developing countries export primary products whose income elasticity and demand elasticity is very low. Changes in supply and demand conditions leads to wild fluctuations in prices and revenue of exports of developing countries. This creates adverse impact on the domestic markets of developing countries. Terms of trade moves against LDCs, which leads to transfer of income from developing countries to developed countries. ADVERTISEMENTS: (ii) Entry of multinational companies will wipe out indigenous sector before they can become strong enough to compete.(iii) Free trade will encourage consumerism, thereby distorting the national priorities. Products, which are not at all necessary, will be imported by spending scarce foreign exchange. Image Source: i.ytimg.com(iv) Free trade will encourage specialization…
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02Dec 2018 by admin

How to Evaluate Monopolistic Competition? (7 Ways)

Trade
Chamberlin theory has been severely criticised by a number of economists like Stigler, Coten and Cyert. The evils and defects of monopolistic competition, which are generally spoken of as ‘wastes of competition’ are as follows. 1. Interdependence: The assumption that the firms take decisions independently and ignore the possible reactions by their competitors has been criticised on the ground that the products under monopolistic competition are close substitutes to one another.The very fact that the firms resort to product differentiation implies that they are aware of the market structure and actions as well as possible reactions of their competitors. Actually, the assumptions of product differentiation and independent actions by the rivals are inconsistent. Image Source: leadingeffectively.com 2. Naive Behaviour: ADVERTISEMENTS: Chamberlin’s implicit assumption of naive behaviour that firms do not…
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02Dec 2018 by admin

Ten Essential elements of a valid contract – Essay

Trade
A contract has been defined in Section 2(h) as “an agreement enforceable by law.” To be enforceable by law, an agreement must possess the essential elements of a valid contract as contained in Sections 10, 29 and 56. According to Section 10, all agreements are contracts if they are made by the free consent of the parties, competent to contract, for a lawful consideration, with a lawful object, are not expressly declared by the Act to be void, and, where necessary, satisfy the requirements of any law as to writing or attestation or registration. As the details of these essentials form the subject-matter of our subsequent chapters, we propose to discuss them in brief here. ADVERTISEMENTS: The essential elements of a valid contract may be summed up as follows: 1.…
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02Dec 2018 by admin

Five Important kinds of contracts from the point of view of enforceability – Essay

Trade
From the point of view of enforceability a contract may be valid or voidable or void or unenforceable or illegal.1. Valid contract:A valid contract is an agreement enforceable by law. An agreement becomes enforceable by law when all the essential elements of a valid contract as enumerated above are present. ADVERTISEMENTS: 2. Voidable contract:According to Section 2(i), “an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract.”Thus, a voidable contract is one which is enforceable by law at the option of one of the parties. Until it is avoided or rescinded by the party entitled to do so by exercising his option in that behalf, it is a…
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02Dec 2018 by admin

Essay on Political Corruption in India

Trade
Here is your essay on Political Corruption in India:It is well-known that a large number of politicians, not only in India, but almost in all countries are corrupt. People are never shocked when politician’s corruption is divulged. Honest politicians are a rare breed today. Ministers like Lal Bahadur Shastri, Sardar Vallab Bhai Patel, Jawaharlal Nehru, etc. are rare who had very little bank balance at the time of death. ADVERTISEMENTS: Money and politics have thus an “adulterous relationship”. In a democracy all political parties need money. While all political parties are guilty of seeking the support of trade and commerce and big business. All done only with the aim of rule on people or to be in ‘Power’ and for the fulfilment of this aim, they violate morals and ethical…
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02Dec 2018 by admin

Speech on Official Deviance by Bureaucrats

Inflation
Here is your speech on Official Deviance by Bureaucrats:Deviance by Bureaucrats is the most common problem in present administration in India. Deviance means illegal, immoral, and unethical activities towards their duties and norms of one’s profession. Bureaucrats mean officials who conduct rationally the work of such administration. ADVERTISEMENTS: It is a major trend of modern society, nowadays Bureaucrats has to play a tremendous role in political development and social change, with the change of concept from police state to welfare state the traditional functions of Bureaucrats as the instrument of revenue collecting agency or law and order maintaining machinery have further increased resulting in widening its scope.In modern administration vast discretionary powers are endowed on Bureaucrats and judicial control over Bureaucrats is very feeble. Only the mandatory duties can be…
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