Nepal class 12 economics notes

CH pl CHAPTER 12: INTERNATIONAL TRADE Introduction: International Trade is the transaction of goods and services between different countries. It is taken as a major part of macroeconomics where various kinds of goods and services are exported and imported among countries in the world. In International Trade nations or people specialize in producing goods in which they have a greater comparative advantage. According to G. Lucket ‘The purchasing of goods and services by the citizens of one country from the citizens of another country is called International Trade’ International Trade has two aspects as Bilateral International Trade where only two countries participate in transacting commodities between each other and Multilateral International Trade where more than two countries are involved in export and import of goods and services. BALANCE OF TRADE (BOT): It is the summary of total volume of exports and imports of visible goods and services of a country with the rest of ...

CH CHAPTER 11: GOVERNMENT FINANCE CONCEPT: Government Finance also called Public Finance is that part of economic activities which deals with income and expenditure of the government. In the revenue side, Government Finance studies the principles of taxation, effect and impacts of taxation, collection of tax and non tax revenues, public debt management and their effects on economic development covering growth, price stability, unemployment, poverty, inequality etc. On the expenditure side, Government Finance deals with principles of government expenditure. It studies how a democratic government should allocate its expenditures on various headings to promote social welfare through the achievement of economic efficiency. According to Bastable ‘Public Finance deals with income and expenditure of public authorities of a state and their mutual relation with financial administration and control’ IMPORTANCE OF PUBLIC FINANCE: 1. To minimize the disparity in living standard: Diff...