Canalisation, Microeconomics

Assignment Help:

State trading is often associated with canalisation. Canalisation means estaolishment of state monomply in foreign trade. In other words, an item that is canalised can be imported or exported~ as the case may be, only the designated state trading agencies.

"'The emphasis is on the control of foreign trade flows rather than on the ownership of the organisation or the agency conducting it.

State trading agencies may also trade in products which are not canalised, ir addition to the canalised items, Thus while canalisation essentially means state: trading, there may also be state trading without canalisation.

Canalisation is widespread in the world. It is not confined to the centrally planned economies and other developing countries. It is also common with the developed countries. "In the period immediately after World War II, canalising enterprises sprang up in almost all OECD countries for trade in agricultural commodities, minerals and some industrial goods. Many of these enterprises subsequently grew in size, increased in relative importance and diversified their activities. Other than in commodities noted above, canalisation has existed at one point or other in products like petroleum, coal and iron. "After the oil crisis of 1973, several advanced countries canalised oil imports to ensure stable supply of oil. Almost all the industrialised countries have used this policy instruments in one form or other although the extent of canalisation is generally much lower than that in the developing economies.


Related Discussions:- Canalisation

Marginal rate of technical substitution and productivity, MRTS and Marginal...

MRTS and Marginal Productivity The change in output from change in labor equals:                     The change in output from change in capital equals

Marginal revenue function and price elasticity of demand, a) Explain the co...

a) Explain the conditions under which a monopolist is able to price discriminate. b) Demonstrate the relationship between a firm's marginal revenue function and its relationship

Calculate the equilibrium price and quantity, Question: (a) The market...

Question: (a) The market demand schedule and market supply schedule for firm H is as follows: Q D = 500 - 10P Q S = -100 + 6P Where Q D and Q S denotes quantity de

What do you meant by progressive tax, Q. What do you meant by Progressive T...

Q. What do you meant by Progressive Tax? Progressive Tax:Tax is considered progressive if a larger proportionate share of its total burden falls on individual'swith higher avera

Describe the trade triangles, Steel and aluminum production Steel Canada 50...

Steel and aluminum production Steel Canada 500, France 1200 Aluminum Canada 1500, France 800 The maximum amount of steel or aluminum that Canada and France can produce if they full

Strength of the multiplier in microeconomics, Q. Strength of the multiplier...

Q. Strength of the multiplier in microeconomics? Multiplier: An initial stimulus to spending (in form of new consumer, business or government purchases) generally results in a

Uses and habit forming commodity -price elasticity of demand, Uses and Habi...

Uses and Habit Forming Commodity -price elasticity of demand: The number of possible uses : A commodity has high price elasticity of demand (or elastic demand) if it can be p

Comparison with other countries, Comparison with Other Countries: The ...

Comparison with Other Countries: The basic purpose of this type of comparison is that: (i) it helps us to know the potentials of growth that can be built up in an economy,

Marginal Cost, why raise MC cost after minimum level ?

why raise MC cost after minimum level ?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd