Question

What is the impact of government policy changes on the business and industry

Options

• Increased Competition

• Increased Demand

• Change in Business Policies

• All of the above

Answer 1

All of the above

Explanation - 

The following points emphasise the effects of government policy changes on business and industry.

1. Increased Competition : Domestic firms face increased competition as a result of policies such as relaxation of the licencing policy and reduction of import duties. Companies in India faced competition in the service industry, such as telecommunications, banking, and insurance.
2. Increased Demand : As competition increases, so does the consumer's choice of goods and services. As a result, consumers benefit from higher-quality products and greater variety.
3.  Change in Business Policies : Government policies have a direct impact on the operation of businesses. As a result, they must modify their policies accordingly.
4. Technological Changes : Firms tend to find new and innovative ways to survive in the market as competition increases. In such a case, technological advancements are required.