BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increasing competition
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More demanding customers
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Rapidly changing technology
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Market orientation
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Detailed explanation-1: -The impact of LPG policies on the government are: It increases the per capita income due to increased job creation. Builds relations with other countries. Extension on trade barriers is lifted.
Detailed explanation-2: -In 1991 the unemployment rate was high but after India adopted new LPG policy more employment got generated as new foreign companies came to India and due to liberalisation many new entrepreneurs started companies. Per Capita income increased due to an increase in employment.
Detailed explanation-3: -Elements of the LPG Reforms in India This policy aimed to build foreign reserves and move towards a higher economic growth rate. Also, it proposed to convert the Indian economy into a market economy, free of restrictions. Lastly, the motivation was to increase private players in all sectors of the economy.
Detailed explanation-4: -Negative Impact of LPG Reforms The reforms were mainly for the formal sector of the economy, the agricultural sector, the urban informal sector, and forest depending communities were untouched by the reform. This resulted in Uneven economic growth and unequal distribution of wealth.