Question

With the listed terms give their definition and 1 significance in terms of economics or international political relations.

- New International Economic Order:

- Monoexporters:

- Macroeconomic stabilization:

- London Club:

- Latin American Debt Crisis:

- Industrialization:

- Import Substitution Industrilatization:

Answer 1

1. New International Economic Order: : This group was basically formed by the poor or developing countries in mid seventies to create a balance in the international trade with the developed countries. The main objective was to correct the BOT situations of this countries. , removal of trade barriers for these countries and fair and balanced trade. Purpose was to solve the disquilibrium in BOP .BUt this group was not successful due to lack of support of south and divergent interest of member countries.

2. Monexporters: I feelthe term mono means single and exporters means trader who sells goods outsie. Therefore monoexporters means those sellers who are single in market and exporting goods in other countries . There are many examples of mono exporters for example egypt was a mono exporter of famous cotton.There is a significance of mono exporters. Like member country can gain more foreign exchange. on the one way but it may create disparities world wide. There may explitation by these countries.

3. Macroeconomic Stablization:: I feel there are two types of corrective measures adopted by a country to improve the economic situation . One is structural measures which is long term corrective measures like change in economic policy, libralization of an economy or Free trade etc. They are long term so economy is affected in long way. Like for example demonetisation in India. Satbllisation measures are basically short term measures to correct the crises of economy like price control ( inflation) , correct in BOP situation , tax releief etc. Macroecomicstabalisation gives short term releief. Like in india after demonetisation there were lots of negative effects. For controling this government has adopted taz releif to big industries.

4. Londaon Club: It was basically created to solve the problems of debt of a country due to the faliure of repayments of loans. It is an informal association of all banks who were facing the problem of recavery of loans so they formed a group to reschdule their debt system.

5. Latin American Debt Crises:These crises were started in early eighties in many of the latinamiricancointries.There was a huge debt burden on some of the latin americancoutries specially venezuala , Maxico .The significance of this debt crises is that it created financial instabilty in thses countries.

6. Industrilisation: Simply it means establishment of industries. It startes in 15th or 16th century. But industrialisation can be seen in morden times also in different perspectives. Like heavy industrialisation in China is posing threat to environment.

7. Import Substitution Indusrialisation: Industrilisation should be in this way which will reduce the economic dependency of a country on other countries. Import substitution is the only solution for that. Which means producing those goods which are imported by the country from other country. But here the theory of comparative cost advantage is very important. A country should not produce those goods which are costlier to t produce rather they should be imported. Here import substitution based indusrilisation refers to only those goods which are cost effective.