Government influence on income, planning, prices and production

 Government influence on income, planning, prices and production 

       INTRODUCTION:

                This deals with price policy and its effects. The factors and parameters associated with the pricing policy, it has also dealt with International prices.The important commodities like power, coal, and other such commodities are taken into account and dealt in detail.

•  Government influence on income, planning, prices and production
•  Price policy
• Objective price policy
• Pricing policy relationship 

Government influence on income, planning, prices and production 

              In the case ot its broad associative definition, government normally consists of legislators, administrators, and arbitrators. Government is the means by which state policy is enforced, as well as the mechanism for determining the policy of the state. A form of government, or form of state governance, refers to the set of political systems and institutions that make up the organisation of a specific government. Government of any kind currently affects every human activity in many important ways. For this reason, political scientists generally argue that government should not be studied by itself; but should be studied along with anthropology, economics, history, philosophy, science, and sociology.

         Monetary policy, economic planning and growth have tripartite intense relationship which has a specific influence of fiscal policy in countries like India. In India, economic policy requirements lead to an expansionary fiscal policy because of the reasons of expanding the demand on the one hand and complimentarily to expand the plan and the non-plan expenditure. Therefore, monetary policy measures are guided by the fiscal policy decisions which interpret in the terms of monetary policy focussing on availability of credit along with others and not just regulating the money supply.

Price policy  

A detailed study of the market structure gives us information about the way in which prices are determined under different market condition. 

Objective price policy 

1) Achieving a target return on investment

2) price stability

3) Achu market share

4) Prevention of competition

5) Increased profits

Pricing policy relationship 

• Uses price as a method to build long term relationship with the best customer
• Focuses on giving better deals to better customer
• Goal it is price relative to the value of the customer to the firm, while building and stimulating repeat buying. 
• As discussed in preceding paragraphs that policy and planning of a nation 
• associated with the international organization and the policy structure of other nations as well, therefore it has to be understood that the domestic prices of commodities depends on the behaviour of their world prices as well. Demand for a commodity in a country may affect the prices of that commodity in another country. Technology and alternative usage of a commodity may also affect the prices for example enhancing role of sugar prices further.