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Monday, March 14, 2016

When we think of Geography, we often use the following words or concepts: location, site, place, access, spatial, regional, distance, separation, proximity, speed, mobility, transportation, resources, communication, agglomeration etc.
The study of Geography as science of Earth began from very early times. To most people, geography means knowing where places are and what they are like. Discussion of an area’s geography usually refers to its topography, its relief and drainage patterns and predominant vegetation, along with climate and weather patterns, together with human responses to that environment, as in agricultural, industrial, and other land uses and in settlement and urbanization patterns.
The word Geography is made up of two words “Geo and Graphia”. The Greek word Geo means earth and Graphia means "earth description" A literal translation would be "to describe or write about the Earth". The first person to use the word "geography" was Eratosthenes (276-194 BC).
1:       Geography, the study of the diverse environments, places, and spaces of the Earth’s surface and their interactions.
2:       Geography is that branch of knowledge which studied the earth, its surrounding and the human environment. (Ratzel)
3:       Geography is the science that studies the lands, the features, the inhabitants, and the phenomena of the Earth. Geography is the description or analysis of the various features and conditions of the Earth.
1.      Human Geography
2.      Physical Geography
Physical Geography
The earth sciences are all interconnected with physical geography. Physical processes are also studied, to understand the forces that shape the earth's surface. Some of the subcategories of Physical Geography are under:
·         Geology
·         Oceanography
·         Climatology
·         Hydrology
·         Glaciology
·         Biogeography
Some examples of practical applications of physical geography include careers in meteorology; geosciences; conservation; land, soil, or water management; and cartography.
Human Geography               
In human geography studies human perceptions of the environment, constructs of human activity, and how humans manage the environment. Human systems are affected by physical systems, as well as how the interaction, perception, and use of the environment affect human systems and evolution. Some of the subcategories are as under:
·         Anthropology
·         Cultural geography
·         Cartography
·         Demography
·         Political geography
Some examples of practical applications of human geography include urban planning, transportation, international business, tourism, marketing, regional planning, real estate and politics.
Definitions of Economic / Commercial Geography
1:       Economic geography is concerned with the distribution of man’s productive activities over the surface of the earth. (N.J.G. Pounds)
2:       A branch of geography that deals with the relation of physical and economic conditions to the production and utilization of raw materials and their manufacture into finished products.
3:       Economic geography is the study of the location, distribution and spatial organization of economic activities across the world.
4:       An Actions that involve the production, distribution and consumption of goods and services at all levels within a society called economic / commercial geography.
German Geographer Humboldt (A famous 19th century German Geographer)
Humboldt defines importance of commercial geography; he said that commercial geography provides knowledge and awareness in different parts of human life. Humboldt discusses goals in different steps are as under:

The main objective of Economic Geography is, to examine man’s economic achievement in terms of production and consumption in light of his environment.
Man and Resources
A study of economic activities is, in fact, a study of man in relation to resources. We may consider the earth as the abode of Man and its resources are his legacy.
Awareness about Country
It describes a country in terms of its natural, human and cultural environment with relation to man’s economic way of life.
Best for Commerce Student
Economic Geography provides true guideline for commerce students, traders, farmers, planner’s, economists. It provides information about labor force their unemployment and future planning.
Knowledge about Places
The study of economic geography could help us consider why some regions can produce food while others are too cold or too dry to support life.
Population Distributions
Economic Geography provides information about world population, distribution, occupations, density and other characteristics, which utilized for better economic development.
Resources Approach
Economic Geography provides true global picture of agriculture, minerals, industrial, forest and livestock resources, and their utilization.
Information for Businessmen
Economic Geography provide true picture of international trade and how they benefit the mankind and from where you can export or import for the betterment of your country.
National Issues
Every country shows great interest for resources within its geo-political boundary and development of her resources, be it natural or human or cultural.
Knowledge about the World
Economic Geography examines the distribution and occupations of people in different parts of the world. It gives us better understanding of where people are and what activities they are engaged in.
Global Village
Economic Geography tells us about international commodity trade and transportation and communication network over the global village.

Your Personal Finance

Tuesday, March 17, 2015

How to Become Financially Independent
 Financial independence means having the wherewithal to say to yourself: “If I wanted to, I could quit what I’m doing today and live comfortably for the rest of my life.”
Millions of Americans can achieve that dream.
You do not have to marry well or choose your parents wisely to reach financial independence. More likely, you will gain it by investing _ shrewdly and boldly. Or by starting your own business. Or by working for a generous company and taking advantage of all the corporate savings plans, stock purchase programs and profit sharing plans that you can.
Say that you have a good job and you figure on getting fairly substantial raises. You would like to retire in 20 years, but you want your retirement income to equal your final salary, counting your expected raises and inflation. You usually can achieve that goal by saving 10% of your salary every year for the next 20 year and earning 10% compounded on your money.
The sooner you start saving, the easier and faster you will be able to accomplish independence. And you will have help along the way. Banks and a bewildering variety of investment firms are all clamoring for your money, and offering high real rates of return to get it. In many cases, the government will even let you shelter your savings from taxes. One of the smartest ways to begin is to put the $2,000 maximum each year into a tax _ deferring Individual Retirement Account. If you start doing that in 1987 and earn 10% compounded annually on the money between now and the year 2007, you will have $129,000.
Even if you cannot deduct your contribution, an IRA is still a great tax saver. Your money can grow at a surprising clip. Thanks to the law of compound interest, you earn returns not only on your original stake but on your accumulated gains as well. At a 10% rate of return, which you should be able to get, your investment would double in just over seven years.
As a start to becoming financially independent, pick the safest high _ growth investment you can find _ and then give it your undivided attention. Probably it will be in the stock market or in real estate.
Real estate demands more hours and energy. You must scout around for the best property, negotiate the deal to buy it, fix it up if necessary and maintain it, But if you have some money to begin with, it can be most attractive to invest in single _ family house that you rent out. With perhaps $10,000 down and a 30 _ year mortgage, you might get a $100,000 property. Later, as your earnings accumulate, aim to buy another house, then another. Eventually, try to sell off your oldest house and use any after _ tax profits to pay the debt on the rest.
If you have less money and time to commit to your investment program, you are better off to concentrate on stocks. Choose growth stock, including some blue chips, scattered in several industries. If your capital base is not large, your best investment is probably a mutual fund that automatically diversifies your portfolio. Over the last 10 years, the typical growth fund has had a total  return of more than 18.5% a year.
You can also achieve financial independence long before retirement age simple by taking advantage of the liberal employee benefit plans offered by many corporations. Job hopping from company to company is not the way to build a reserve of capital. Most programs do not go into effects until you have been with a company for at least a year. But an employee earning, say, $35,000 who stays with the same firm for 20 year can amass as much as half a million dollars from generous benefit plans.
The most important capital _ building corporate benefits are profit _ sharing and savings plans. In both, your employer usually contributes money above and beyond your regular salary to an account that is turned over to you when you quit or retire. In a profit_ sharing plan, the contribution depends on the company’s annual earnings _ and in the best years usually amounts to about 10% of your salary. In a typical savings program, the company will match each dollar you invest with 50 cents of its own. And remember: everything the company tosses into the pot, plus all the earning on both your own and the company’s contributions will get the huge boost of tax deferral. The money grows free of taxes until you with draw it.
A relatively new kind of savings program _ called a salary _ reduction, or 401 (k) plan _ offers a great tax break. You put part of your pay in the plan and in is not considered immediate income _ so it is tax _ deferred and can grow with extra speed. One drawback, though: it is hard to take out any of your money before you leave the firm. Under tax reform, if you withdraw money before age 591/2 , you may have to pay a 10% penalty on top of any income tax you owe.
Probably the most common way to try to become financially in_ dependent is to start your own business. You still will find the widest range of opportunities in the fast_ growing Sun Belt states, but there also are pockets of prosperity in the Pacific Coast region and in New England. As more large industrial firm move into these areas, they will need smaller companies to supply them with parts and with secretarial, accounting, computing and many other services.
Before you launch any business, take a hard look at its real market potential. Do not try to start too big. The safest course is to create a firm small enough for the money you have and then make it larger.
A small success is better than a big failure.
Be sure you start with enough money. Under financing is as bad as over borrowing. It can choke a promising enterprise or force you to give up control to your backers.
A little financial help from your friends and relatives is fine, but treat such loans as strictly business deals, complete with signed legal agreements. Handshake deals often lead to bitter quarrels.
To launch and maintain almost any enterprise, you need a credit line from bank. When you first go to a bank and begin to establish a relationship, do not rush to the highest officer. Instead, find a younger employee who has time for you. Ask him or her to review your ideas and refer you to a lawyer or accountant who cab help you to write an intelligent business plan. In at least three or four pages, it should describe your product or service; the staffing, space and equipment you will need; and the reasons that your business should succeed. The plan will help you to define your objectives _ and to get a line of credit. Draw from it as you need the money, not in a lump sum that would saddle you with unnecessarily large reply_ ments.
Still another way to gain financial independence is to go to work for a start_ up company and persuade the founders to give you some stock in the firm in lieu of a large salary. But before you count your gains, bear in mind that one _ quarter or more of start_ ups fail to survive even two years. They tend to be undercapitalized and short_ handed, so you often work long hours for little pay.
You can find many start_ up among newly deregulated business, in fields such as airlines, trucking and other transportation; real estate and personal financial services; health services, especially geriatric care; and in software and other computer _ related businesses. To locate start _ups, watch the help _ wanted columns in trade periodicals and newspapers. You also can learn about new ventures in national magazines such as venture and Inc. and in regional ones such as California Business. High_ tech ventures cluster around universities, so a business school professor may know of some. Another source is the management _ assistance officer at your district Small Business administration office.
Before you join a new venture, be sure to consider certain questions: Is the new product or service really worthy? For evidence, read the founder’s business plan. What is the founder’s business record of past success? For information, consult his or her business associates and rivals. Who is putting up the money? A token of an entrepreneur’s commitment is the amount of his or her own money invested in the new venture.

The more complicated your employment arrangement, the more will want a contract or at least a letter of understanding. Get as much down on paper as possible, then show the agreement to your lawyer.

Problems of Financing Small Business and Industry in Pakistan and their Solution

Sunday, May 25, 2014

Problems of Financing Small Business and Industry in Pakistan and their Solution

The Banking Reforms of May 1972 had emphasized the need for adequate credit to small business and industry, and the state Bank ‘s Scheme for small business and industry, and the state Bank’s Scheme for Small Loans to Business and Industry was introduced. In Pursuance of this objective, on 20-11-1972
Definition of Small Loans
Under the original definition of the Scheme, advances for business Purposes not exceeding Rs.50.000, and advances to industrial units having fixed assets upto Rs. 10 lac, were treated as Small Loans. Subsequently as from 1-1-1975 the limit of Rs. 50,000 was raised to Rs. 75,000 From 1-4- 1975 this limit was further raised to Rs. 1 lac and the size of industries qualifying for small loans was enhanced, in terms of their fixed assets, form Rs 10 lac Rs. 20 lac excluding land and building.
(Rs. Crore)

Year                             (a)                    (b)                    as %
                                    Target              Achievement   of (a)
1972-73                       26.60               41.87               157.41
Net increase in outstandings
1973-74                       45.000             7.35                 16.33
1974-75                       67.00               58.14               86.78
1975-76*                     69.00               79.60               115.36
*Upto May 1976

            During the period July 1975- May 1976 we had already ceded the target for the full year 1975-76 buy more than 15%
            Outstanding of small loans to business and industry stood at Rs.118. 65 crore at the end o June 1974 i.e. the target year during which the bansks were nationalized. At the end of May 1976, these outstanding s stood at Rs. 278.72 crore, i.e. an increase of 134.91 per cent in a period of less than two years. No doubt, part of this increase is due to the revised definitions of loans but the figures also reflect the genuine and consistent efforts of the nationalized banks in the direction of credit to the socially desirable sectors which were hitherto neglected.
            Out standings of small Loans as a whole, i.e. small loans to agriculture and low-cost housing as well as business and industry, have similarly increased by 140.12 per cent, from Rs. 155.83 crore at the end of June 1974 to Rs. 3745. 18 crore at the end of May 1976. The share of small loans in the total private sector advances of the nationalized banks has almost doubled from 16 per cent in June 1974 to 31 per cent in May 1976.
            When the Scheme for grant of Small Loans to businessmen and small industries was launched. It was known that an earlier programme to disburse loans to small traders, regardless of security and chances of recovery, had proved a dismal failure, therefore, at the time of framing the  Scheme and prescribing mandatory targets several important factors were dept in view, Amongst these, the most important ones were (a) to ensure that only genuine loans for business and production were catered for and not consumption loans; (b) reasonable security was provided for the lens in the form of some tangible assets with reasonable margin; (c) the same borrowers did not avail of advances from a number of banks so as to defeat  the purpose of the Scheme; (d) all applications were processed expeditiously; (e) in case of rejection of any applications, valid and cogent reasons for it were available.
            The success so far achieved in implementation of the Scheme is evident from the fact that there are very few complaints about, delay or refection of application without any grounds and even a majority of such complaints, on examination, is found to be not justified.
            There are of course many aspects of financing small business and industry, particularly the problems involved and their solutions. I am sure that the papers circulated on the subject in this Seminar have brought out the problems that have to be tackled in the spirit in which the Scheme was launched.
            I hope that before we disperse we should be able to make some recommendations for resolving the issues under discussion with a view not only to broadening the base of small loans for business and industry but also to evolve a common methodology to speed up the decision making process in the light of practical experience gained in the working of the Scheme.
            Without taking any more of your time, therefore I would request that the discussion may be started.