The trade reforms initiated in the country since the beginning of 1990's were directed to achieve the basic objective of bringing about definite and permanent improvement in trade and payments situation in the country. The impact of the liberalisation of trade policies upon the economy of the country is as follows: Impact # 1. Shift Front Inward-Looking Trade Policies to [...]
In this article we will discuss about the trade reforms in India. The policy of economic liberalisation was put into operation with effect from 1991. A highly crucial aspect of economic liberalisation is the liberalisation in the field of foreign trade. Two basic components of the import policy of the government of India before 1991 were import restriction and import- [...]
In this article we will discuss about how to correct the balance of payments. Domestic Price Changes and Balance of Payments Adjustment: In the analysis concerning the changes in exchange rates, we took an over-simplified assumption that the home prices of depreciating country's exports and foreign prices of her imports do not undergo changes as a result of depreciation. In [...]