YLC - IAS /PCS

Each Veda has 4 parts :

Samhitas - Most ancient part of Vedas
Contains mantras , prayers and hymns to gods.

Brahmanas - Prose interpretations of the samhita chapters .Gives details and explanations of sacrificial rituals and their outcome.

Aranyakas - Texts on forest life. It interprets sacrificial rituals in a symbolic and philosophical way.

Upanishads - 108 Upanishads, 13 of which are significant.They contain a great variety of philosophical ideas about sacrifice , the body and the universe.They are most closely associated with concepts of Atman and Brahman.

VEDIC PERIOD

A) Rigveda - oldest Veda
divided into 10 books (known as mandals )
-includes vishvamitra's famous Gayatri mantra and the purusha sukta prayer (the story of primal man)
-Rigvedic priest is known as Hotri.

B) Yajurveda- Essentially a manual for the Adhvaryu priest who was responsible for almost all ritualistic tasks in a sacrifice.
- Principally in prose form.
- Has been divided into two sections: the earlier black and the more recent white.

C) Samaveda - Shortest of all the four Vedas
- It is a collection of Rigvedic verses organised in the form of poetry to facilitate singing.
-Specially intended for Udagatar priest

D) Atharvaveda - Compilation of magical spells and charms that are used to ward of evil spirits and diseases.
- Latest and contains hymns ( some from the Rig veda)

Facts of Ancient India:

The inaugural Jain Sangiti, convened in the 4th Century BC in Patliputra under Sthulabhadra's leadership, resulted in the division of Jainism's 12 fundamental principles into two distinct sects: Shwetambara and Digambar. The second Sangiti, held in Vallabhi, Gujarat, in the 6th Century AD, was presided over by Kshmaanshraman.

Ancient India Facts :

Shaivism was propagated in the South by Nayanars , whose total number was 63. The saga of these 63 Nayanars was compiled in Periyapuranam, whose author was Nambi Andar Nambi.

Historical records reveal that Boghazkoi, situated in Asia Minor, Turkey, has yielded significant archaeological findings. The 14th Century BC inscriptions discovered at this site document a treaty between Hittite and Mittani Kings, invoking A***n deities such as Indra, Mitra, Varuna, and Nasatya as witnesses. Notably, Boghazkoi provides valuable insights into the migration patterns of the A***ns.

Ancient India Facts

To safeguard Vedic literature, sutras were formulated. Notably, Kalpa Sutras, comprising rules and regulations, are divided into four distinct categories: 1) Shrauta Sutra, addressing yagya development, 2) Griha Sutra, outlining rituals, 3) Dharma Sutra, providing the foundation for Indian law and social conventions, and 4) Sulva Sutra, focusing on geometric principles and measurement techniques for yagya altar construction.

Ancient India Facts

In Uttar Pradesh, significant ancient sites include the Mesolithic locations of Mahadaha and Sarai Nahar Rai in Pratapgarh district, and the Neolithic sites of Koldihwa, Maghara, and Chopani Mando.

Ancient India Facts :

1) Ropar

-Evidence of Dog burial with owner is found at Ropar Site in Punjab.

-Excavated by Yagya dutt Sharma

-First site excavated after Independence

2) Surkotada

-Kutch district , Gujarat

- Discovered by Jagapati Joshi

- Evidence of horse bones has been found

3) Chanhudaro

-Excavated by NG Majumdar

- Lipstick

4) Lothal

-Three pairs of cremation

- Excavated by R Rao

5) Kalibanga

- Camel Bone

- Excavated by Amlananda ghosh

Porter's Diamond theory of National Advantage

Classical theories of international trade insisted that compatitive advantage resided in the factor endowments such as land , natural resources , labour and the size of the local population that a country may be fortunate enough to inherit.

However, Michael E .Porter placed other advancements in determinant factors and cultural factors of nations such as skilled labour , a strong technology and knowledge base , and Government support.

Four ingredients of the diamond in terms of advantage are :

The availability of resources and skills

Access to information that industries use for production plans and decisions with available endowments.

The goals of individuals in companies

The pressure on companies to innovate and invest.

Main points of diamond theory:

1) Factor conditions - A country creates its own important factors such as skilled resources and technological base.Upgrading and deploying the factors in production is more than the availability of these factors.Innovation helps to overcome the local disadvantageous conditions such as labour shortages or scarce new materials

2) Demand conditions - Markets pay more attention to the product that has a higher demand in the local market than abroad , then this trend provides a competitive advantage when the local firms begin exporting the product.A more demanding local market leads to national advantage.Local firms are able to anticipate global trends with a strong trend setting local market.

3) Related and supporting industries - When local supporting industries are competitive, firms enjoy more cost effective and innovative inputs.This effect is strengthened when the suppliers themselves are strong global competitors.

4) Firm strategy, Structure and rivalry - A firm can have a high level strategy , however may have to be structured with the local markets and trends.Strategy and structure helps to determine in which types of industries are locally suitable and can function well.In porter's five forces model , low rivalvry is attractive .However , local rivalry is healthy as it helps to improve and innovate to stay in the business.Firms can use local rivalry as an advantage and move beyond the local advantages such as capital and resources.

5) The diamond as a system- Interdependency of factors helps to innovate.For eg- rivalry can help to innovate when there are local disadvantages.

Heckscher and Ohlin Theory - Modern Theory of International Trade

Eli Heckscher propounded the trade theory based on the country's comparative advantages based on the relative availability and scarcity of resources as factors of production.His student Bertil Ohlin , later developed international trade theory of the relative factor of abundance and scarcity.

This theory takes two exchangeable commodities as factors as a framework for production.

Assumptions of this theory

There are 2 counties involved
Each country has two factors (labour and capital) .Each country produces two commodities or goods (labour intensive and capital intensive).There is perfect competition in both commodities and factor markets .Factors are freely mobile within a country but immobile between countries.Two countries differ in factory supply.Human resources are fully employed in both countries and both countries have identical demand of products.No trade restrictions in form of tariffs and non tariff barriers.No transportation costs.

Heckscher Ohlins theory has been criticised on the basis of :

1) Unrealistic Assumptions
2) Restrictive
3) One sided theory
4) Static in nature
5) Wijnhold's criticism
6) Consumers demand ignored
7)Haberlers criticism
8) Leontief Paradox

International Trade theories

A) Classical Trade theories

Theory of Mercantilism

300 years old philosophy

According to this theory , it is always desirable to hold the treasure of a nation in the form of gold, which constitutes its wealth.

Countries should strive to export more than they import and difference in value or the trade surplus should always be received in the form of gold from those countries which were experiencing trade deficit.

However, Governments by establishing corporations and trading companies controlled the economic life of the people and ensured that goods produced by them had very good demand and commanded better prices in the colonies occupied by them while at the same time ensuring a balance of trade by importing barest minimum of goods for them.These goods were normally the raw materials required for the products exported by them; these will be of the highest quality but procured at the lowest prices . Thus they ensured their commanding position in foreign markets

B) Theory of Absolute Cost Advantage
(Adam Smith Model )

Adam Smith was of the opinion that the productive efficiency among different countries differs because of diversity in the resources both natural and acquired possessed by them.A country can possess certain natural advantages like its quality of land , conducive climatic conditions, availability of minerals , metals , petroleum reserves etc. Acquired resources can be the educational levels of its population, certain skills possessed by people of country and the technological capabilities available in the country.

He advocated that a particular country should specialise in producing only those goods that it is able to produce with greater efficiency, that is at a lower cost and exchange these goods with other items required by them from a country that produces these items with greater efficiency or at a lower cost.This will lead to optimum utilisation of resources in both countries and ensure that both the countries are able to obtain their requirements at the least cost possible

Theory of Comparative Cost Advantage

David Ricardo contributed to the theory in his book ' Principles of Political Economy and Taxation ' published during 1817.

The doctrine of comparative cost advantage maintains that when nations are left free to indulge in international trade , each country tends to specialise in the production and export of those goods in whose production it enjoys a comparative advantage.

Ricardo ' s Assumptions

There are two countries and two commodities. There is a perfect competition both in commodities and the factory market .Cost of production is expressed in terms of cost of labour.Labour hours/days for production is directly proportionate to the value of the product.The value of labour can be exchanged with the items.

Labour is perfectly mobile within a country but perfectly immobile between countries.
The movement of goods between countries is not restricted in free trade. Production is subject to constant returns to scale.There is no technological change.Trade between two countries takes place on barter system.Full employment exist in both countries.

There is no transport cost.