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Question
Giving any four points, explain the impact of government policy changes on Business and Industry.
Solution
Policies of liberalisation, privatisation and globalisation by the government affect the functioning of business enterprises. The impact of government policy changes on the business and industry:
1) Increased competition: The policy allowed easy entry of foreign firms and abolition of licensing. Domestic companies thus have to compete with international firms in the market which is a serious challenge and threat to them.
2) Increased demand: Because of the fierce competition from the foreign market and new businessmen joining the production line, there has been a tremendous increase in customer demands for a better choice of goods and services.
3) Change in business policies: Business enterprises had to alter their policies and operations from time to time following government policies under the new industrial policy.
4) Technological changes: The competitive spirit has led new firms to fund new and innovative ways to outperform each other in the market. They increasingly adopt new technology and engage and invest further research and development.
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1) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.
2) Also, explain briefly any three impacts of these concepts on Indian business and industry.
What is meant by 'liberalisation'?
What is meant by 'Globalisation'?
Krishna Furnishers Mart started its operations in the year 1954 and emerged as the market leader in the industry because of their original designs and efficiency in operations. They had a steady demand for their products but over the years, they found their market share declining because of new entrants in the field. The firm decided to review their operations and decided that in order to meet the competition, they need to study and analyze the market trends and then design and develop their products accordingly. List any two impacts of changes in business environment on Krishna Furnishers Mart’s operations. (Hint: increase in competition and Market orientation).
Explain the following terms:
a. Liberalisation
b. Privatization
c. Globalisation
What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?
What are the essential features of:
a. Liberalisation,
b. Privatization and
c. Globalisation?
Reduction in the role of public sector is due to ________.
Export promotion is concerned with _______.
Which of the following deals with the process of simplification of Import-Export?
A possible obstacle to growth of privatisation is ______.
Privatization of ownership through sale of equity share is called ______.
Liberalisation means :-
Which of the following does not explain the impact of government policy changes on business and industry?
______ refers to the removal of unnecessary controls and restrictions of the government in the form of -licenses.
What is the impact of government policy changes on the business and industry
What are the essential features of Liberalisation?
