Volume-7, Number - 1  
Month: January - June, 2011
A Study of External Sector perfromance with Empasis on Exchange Rate and Foreign Exchange Reserve in India since 1980

Meenal Yadav
Lal Bahadur Shastri Institute of Management & Development Studies, Lucknow-UP
Page No. 47

Purpose/Aim: A study of foreign trade is necessary for understanding the nature and extent of economic interdependence among counties. Countries depend on each other for a variety of economical transactions, i.e: transactions in goods, services and capital, that is, financial transactions.

Methodology/Approach : People live and work in a national economy i.e.: the economy with in the borders of the country. But they also live and work in an international economy or world economy, being part6 of world.

Findings/Conclusion: No country can therefore live in economic isolation or afford to keep out of the global economy exceptat it own risk.

Keywords: The risk arises because no country is self-sufficient with regard to its needs or requirements, nor can it consume or use up all taht is produces; nor can the country remain a closed economy, insulating itself from external influences.