ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Advertisement and Markets

Different kinds of advertising such as targeted, informative and indirect comparison ads are used in order to augment the demand for products or to encourage customers to switch brands. Have the large amounts spent on advertising by firms in different industries borne rewards? How do customers perceive advertisements and how do they impact their buying decisions?

Exchange Rate Policy and Black Market Premium on Foreign Exchange

The precondition for exchange rate policies to reduce under-invoicing of exports is that the black market premium (BMP) on foreign exchange is lowered. The popular conception that this is always the case is not necessarily supported by empirical evidence. This gap between theory and evidence is due to the incomplete theorisation of the link between exchange rate policy and BMP. This paper discusses two additional channels through which BMP is affected. One is the income effect consequent upon employment and real income expansion that raises the black market dollar demand. The other is the variation in export quality that may raise the black market dollar supply. These effects work in opposite directions and together with the usual effects make the change in BMP less certain than predicted in the existing literature.

Globalisation and Inequality

With the possible exception of the east Asian countries, increased foreign trade and investment have increased wage inequality in almost all parts of the globe during the last two decades of the 20th century. Theoretically as well as empirically Heckscher-Ohlin-Samuelson model of trade, with the Stolper-Samuelson result at its core, fails to explain such widening of wage gap between skilled and unskilled labour particularly in the south. This paper discusses alternative variants of the specific factor model accounting for the diverse trade pattern, informal factor markets and existence of non-traded goods, that can help our understanding of the wage gap phenomenon.

Liberalisation, Innovation and Exports

One peculiar aspect of India's technological development is that whatever little innovation has taken place has been minor' innovation, including adaptation of process to indigenous raw materials, instead of major innovations at the frontiers of technology. Can the present liberalisation efforts through successive reduction of tariff rates reverse the trend' If so. how much tariff cut is needed? These issues are examined in this paper.
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