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Question
Giving any four points, explain the impact of government policy changes on Business and Industry.
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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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What is meant by ‘liberalisation’?
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
Briefly discuss the impact of Government policy changes on business and industry.
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What are the essential features of:
a. Liberalisation,
b. Privatization and
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Reducing the role of Public Sector and increasing the role of Private Sector fall under ______.
In all the countries there is a free-flow of goods and services under which of the following does it come?
Which of the following deals with the process of simplification of Import-Export?
Globalization aims at ______.
Privatization of ownership through sale of equity share is called ______.
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?
What are the essential features of Privatisation?
