Important Terms

Economic Reforms : By economic reforms we mean a change in the set of economic policies.

Liberalization: Liberalization means lifting of controls imposed by the government. In other words, liberalization means giving greater freedom to economic agents to take their own decisions.

Globalization: Globalization means increasing integration between different economics of the world.

Privatization: Privatization is closely associated with liberalization. It signifies a greater role for private sector in the functioning of an economy.

Bilateral Agreement: When a country makes trade relation with other country then it makes an agreement with the country separately. This is called bilateral agreement.

Import Quota: When a country puts restriction on the amount of commodities to be imported them it is called import quota. This is done in the interest of the domestic consumers.

Export Quota: When a country imposes restriction on the quality of a commodity to be exported then it is called export quotas. This is done in the interest of the domestic consumers.

MRTP: Following the recommendations of Monopoly Inquiry Committee (1965), an act was passed in 1970. The act was called Monopolies and Restricted Trade Practices Act.

Laissez Faire : It is a French term which means leave us alone. It denotes the view that government should interfere as little as possible in economic activity and leave decision to the market.

Foreign Investment: Foreign investment is of two types. The first is investment of foreign capital into new productive activity. This is known as direct foreign investment. The other is foreign capital, purchasing the shares of Indian companies. This is known as Port Folio Investment.

Direct Foreign Investment: Direct foreign investment creates additional capacity and contributes to additional production.

Intellectual Property Rights: Laws governing patents, copyrights, trade secrets, electronic media and other commodities, comprised primarily of information.

Mixed Economy: Under this economy both public sector and private sector work together.

Sustainable Economic development: It means that the development should take place without damaging the environment.

Hard Currencies: Currencies of those countries which are in great demand.

Development Strategy: Development strategy refers to a basic long term policy to realize certain objectives.