Lato-kosero

Globalization Globalization refers to an advance stage of development where capital, technology, labor, raw materials, information and transportation, distribution and marketing are integrated or interdependent on a global scale. Economic liberalization and globalization are closely linked. It is important to take these terms interchangeably. Basically it is liberalization policy which enables the growing globalization process. Thus economic liberalization generally refers to policy be defined as the process of increasing economic integration between or among countries leading to the emergence of a global market place or a single world market in every aspect of economic activities: production, consumption, exchange and distribution. Thus globalization may be seen as a major driving force of global economic integration and has the following main features: §   Internationalization of production with very fast changes in the structure of production. §   Liberalization a

CHAPTER I INTRODUCTION 1.1   Introduction of Market Failure A market failure is the inability of the market to produce a desirable product or to produce a desirable product in the "right" amount. Market failures are a common occurrence, as positive and negative externalities yield results that are imperfect (or, at least, not ideal) and warrant correction. We will consider several methods for correcting allocative issues in the market and reducing the incidence of market failures. In order to fully understand market failure, it is important to recognize the reasons why a market can fail. Due to the structure of markets, it is impossible for them to be perfect. As a result, most markets are not successful and require forms of intervention. According to K. Arrow and G. Debreu following condition must be satisfied if markets are to yield efficient outcomes: i)                     The absence of externalities(external economics or diseconomies that affect the acti

Socialist approach of Planning Socialist approach of planning is similar to interventionist planning. The classical conception of socialist economic planning held by Marxists involved an economic system where goods and services were valued, demanded and produced directly for their use-value, as opposed to being produced as a by-product of the pursuit of profit by business enterprises. This idea of “production for use” is a fundamental aspect of a socialist economy. This involves social control over the allocation of resources and production. This differs from planning within the framework of capitalism, which is based on the planned accumulation of capital in order to either stabilize the business cycle (when undertaken by governments) or to maximize profits (when undertaken by firms), as opposed to the socialist concept of planned production for use. “Socialist planning “usually refers to the Soviet-type command economy.  The main features are: Centrally (gover