1. COUNTERVAILING DUTIES:
COUNTERVAILING DUTIES ARE THE DUTIES IMPOSED ON IMPORTED GOODS BY AN IMPORTING NATION TO REDUCE OR MIGITATE THE IMPACT OF ALL INCENTIVES GIVEN BY THE EXPORTING NATIONS ON THE GOODS EXPORT.
THE MAJOR PURPOSE OF COUNTERVAILIG DUTIES ARE AS UNDER:-
- TO PROVIDE A LEVEL PLAYING FIELD IN THE GOODS MARKET
- TO INCULCATE A COMPETITIVE MARKET
- TO PROTECT ITS OWN DOMESTIC INDUSTRY
4. This also acts as a source of revenue ganeration for the importing nation.
2. TRADE WAR:
A trade war is a sitution wherein two coutries are started imposing tariff duty on importing items in order to protect its own domestic industry from the skewed competition. Tariff measures and counter-tariffs measures by countries one after the another increases the inflatio in the market and is deterimental for the international bussiness ecosystem.
the word has been widely used in the recent past, due to exorbitant tariffs imposed by the Trump administration on indian goods and chinese goods citing various reasons, the measures adopted by the trump administration has adversely impact the indian exporters and also increased the inflation in US market
further, the supreme court of USA has recently struck down the tariff increase decision of president Trump, citing it as an unconsititutional approach.
3. TARIFFS:
tariffs are the duty which are imposed by an importing nation on the foreign goods, this increases the price of imported commodity, the objective is to make the market more competitive for the foreign goods and also to protect the domestic industry and thereby save employment and own industrial development.
4. FISCAL CONSOLIDATION:-
fiscal consolidation are all the measure adopted by the government to reduce the fiscal deficit, increase revenue ganeration, reduce current account deficit while maintain the optimum growth the increase expenses in capital formulation and spur business cycle in the nation.
The recent decision of the government to reduce the GST rates and rationalise the GST Tax slab is an initiative in the direction of fiscal conslidation. the move has increased the consumption in the market on one hand through reduced tax on goods and the same time with increase in demand the tax collection has also increased.
5. ADVOLEREM TAX:
Such type of tax which increases with the increase in the income of the individual or corporation is called ad volerem tax, for example income tax fixed at certain percentage of total income.
6. OPEN MARKET OPERATION:
It is a tool available with the reserve bank of india, to increase or decrease the money supply in the economy, the RBI from time to time sell or purchase the government security from the market and thereby pull or push the liquidity/money supply in the market.
for example:-
When the RBI sells the government bond it abosorb the liquidity from the market and thereby control the increasing inflation.
7. SDR/ STATUARY DEPOSITORY RIGHTS :
SDR is a tool available with the International Monetary Funds /IMF to deposit certain amount of international currency/gold in respect of member country to provide them international currency during the balance of payment crisis.
8 MASALA BONDS:-
Masala bond are the rupee dominated bond which are raised in the international market, the objective of these bond is to escape the foreign exchange rate ups and downs or volatility of exchange rate. The raising of masala bonds in international bond market is a step towards internationalisation of indian currency.
9. SERVICE AREA APPROACH:-
The concept of service area approach is working style in banking sector wherein a particular bank branch is designated a particular area constituting of village or town to provide credit and take deposit. The approach was designed to reduce the chances of conflict between two branches in providing services in a particular area.
10. LEAD BANK SCHEME
Under the lead bank scheme, each bank is designed with the objective to provide banking sector to a particular district, the objective of the scheme is to provide banking services to a particular district in implementation of government schemes, develpmental works etc. The RBI through its nodal officer is also oversee the working fo the lead bank scheme.
