The term “political economy” is derived from the combinations of the Greek words “polis” (city or state) and “oikonomos” (one who manages the household). The term can thus be used to analyze how countries are managed in a system where both economic and political factors are at work Political Economy was the original term for studying the various acts of production buying and selling and their relations with the laws. customs and governance. It was meant to study the conditions under which production was organized in the new-born capitalist states. In a way, it could be named as branch of social science dealing with the production and distribution of goods and services and their management.