BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

PRINCIPLES AND PRACTICE OF MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Under which environmental effects IBM and Coca-cola had to leave India? *
A
Political
B
Technical
C
Social
D
Economic
Explanation: 

Detailed explanation-1: -Under political environment effect, IBM and Coca-Cola had to leave India. Explanation: The political atmosphere in a country like India can have an impact on businesses organization. This is done since it may introduce a risk factor for the company, and they may have to lose money as a result.

Detailed explanation-2: -Coca-Cola operates 58 water-intensive bottling plants in India. In the southern Indian village of Plachimada in Kerala state, for example, persistent droughts have dried up groundwater and local wells, forcing many residents to rely on water supplies trucked in daily by the government.

Detailed explanation-3: -In 1977, as per the provisions of the Foreign Exchange Regulation Act brought by the Morarji Desai government, Coca-Cola was required to reduce its ownership stake of its Indian operation. Coca-Cola along with other United States companies chose to leave India than to operate under the new laws.

Detailed explanation-4: -Governments can raise or lower corporation tax, which will impact on profits. They can also affect businesses by increasing value-added tax on products or business rates. They can bring in new laws like the National Minimum Wage, which impacts on profits and employment rights.

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