Terms Associated With Trade

Balance of Trade
The BOT(balance of trade) refers to the relationship between the total exports and total imports of a
country. Where the value of the imports exceeds the value of the exports there is a trade deficit
and where the exports exceeds the imports there is a surplus.
Impact Substitution Industry
ISI(impact substitution industry) are industries which produce goods that were previously imported.
They aim to:
● Reduce imports
● Increase employment
● Increase gdp
● Utilize country’s resources
Enclave Industry
Basically a sweatshop. It provides jobs but does not add to your gdp.

The Importance Of
● Employment to semi unskilled persons
● Makes use of natural resources
● Reduces import bill
● Potentially increases the import bill
● No bill
● Contributes to GDP
● Creates trade relationships

Measures Implemented By Gov To Develop Secondary Ind

Establishment of industrial estate
Area set aside for industrial development which provides the following:
● Warehouse
● Telephone
● Electricity
Small manufactures can rent out these premises to carry out their operations