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Labor union or a trade union is a voluntary organization of workers formed to bargain collectively with management about wages and terms of employment, such as working hours, over time, holidays, leaves, and other benefits. In case of a labor or industrial dispute the most effective weapon that unions can use is to call a strike which is walkout and work stoppage. On the other hand, if the management shuts down the work place to pressure workers to accept its term, it is called a lockout.
Wage is compensation paid to a worker by the employer for services rendered. Theoretically it is based upon how much value the worker adds to the product produced. But practically it is impossible to measure it and separate it from the values added by the other three factors of production: land, capital, and entrepreneurship. Also in case where the entrepreneur is self-employed it is all the more difficult to separate the value added as a worker from value added as the entrepreneur.
Division of labor and comparative advantage are the principles on which trade is based and carries on whether it is internal (domestic) or international (foreign). It is a transaction which is mutually beneficial for buyers or sellers or importers and exporters prompted by specialization—to engage in such activities that they are best qualified to do. Moreover, we now all live in a “global village” as interdependent neighbors.
The basis of trade between two nations is built upon two principles known as absolute advantage and comparative advantage which are explained below.
There are 12 import and export product groups with detail explanation from Zaheer.
The trade between nations—international trade/foreign trade—despite many merits also has its limitations and shortcomings as well as its opponents.
1. The WTO facilitates the implementation, administration and operation, and furthers the objectives, of this Agreement and the Multilateral Trade Agreements, and also provide framework for the implementation, administration and operation of the Plurilateral Trade Agreements.
The balance of payments is a system of accounts that measures transactions of goods, services, income, and financial assets between domestic households, businesses, and governments and governments and residents of the rest of the world during a specific time period.
A foreign exchange rate is the price of foreign currency in terms of domestic curren¬cy. If the foreign exchange rate for US dollar is 70 rupees, one dollar costs 70 rupees. Hence the exchange rate of one rupee is 0.142 dollars, because it takes 70 rupees to buy one dollar. The ex¬change rate between rupees and dollars is determined by the demand for and supply of rupees and dollars in the foreign exchange market.
In between the idealistic pure competition and pure monopoly lie many a categories of market structures facing a firm. The real world is made up of imperfect competition of varying degrees including government regulation and partial or full government ownership.