BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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technological upgradation
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Demanding customers
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Increased competition
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All of the above
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Detailed explanation-1: -Some of the impacts of changes in government policy on business and industry are: 1. Increasing Competition 2. More Demanding Customers 3. Rapidly Changing Technological Environment 4.
Detailed explanation-2: -Impact of Government Policy on Business The government can amend the fiscal policy, which provokes changes in taxes, commerce, subsidies, regulations, interest rates, licensing, and more. Businesses should be supple enough to respond to changing rules and policies.
Detailed explanation-3: -Government policy can influence interest rates, a rise in which increases the borrowing cost. Higher rates will lead to decreased consumer spending, but Lower interest rates attract investment as businesses increase production. Businesses can not thrive when there is a high level of inflation.
Detailed explanation-4: -Change in agricultural prices does not explain the impact of government policy changes on business and industry.
Detailed explanation-5: -Impacts of Government Policy The New Industrial Policy, 1991 brought reforms in terms of Liberalisation, Globalisation and Privatisation. These had a major impact on the working of enterprises in business and industry. These have posed several challenges to the Indian corporate sector.