Even after opening up of our economy in 1991, foreign companies found it extremely difficult to cut through bureaucracy and red tapism.' Identify the element of business environment and explain it with the help of an example.

Even after opening up of indian Economy, foreign companies found it extremely difficult to cut through the bureacratic and redtapism in government offices. This discourages them from investing in India. Identify the dimension of environment mention in above para.

Amko Ltd. An American company is manufacturing a high quality products, which is very popular in America. The company is searching for the posibilities of exporting its product to foreign countries. After a through search on the internet it arrived at the conclusion that India. Now the company is looking for such a company which is already establity in india. Nowthe company names 'Surya Ltd.'which was facing severe financial constraints, but it bad a very strong distributions system. Amko Ltd. negotiated with Surya Ltd, and both the companies made an agreement to jointly run their businesses. In this way the American company, with the help of Surnya Ltd., got a good experience of entering the foreign markets. (a) Identify the tupe of business enterprise formed by merging Surya Ltd. with Amko Ltd. (b) State any four features of such a business enterprise.

Crisis of June 1991 Major elements of the crisis situation which led the Government of India to announce economic reform were : .A serious fiscal crisis in which the fiscal deficit reached the level of 6.6 per cent of GDP in 1990-91. Heavy internal debt which rose to about 50 per cent of GDP with interest payments draining about 39 percent of total revenue collections of the central government. Low GNP growth rate which fell to 14 per cent from the peak level of 10.5 per cent in 1988-89 (at 1980-81 prices). Low overall agricultural production, foodgrain production and industrial production showed negative growth rates of -2.8 per cent,-5.3 per cent and -0.1 per cent respectively. Soaring inflation rate based both on wholesale price index and consumer price index (for industrial workers) at 13-14 per cent Shrinkage of foreign trade, imports (in terms) fell by 19.4 per cent and exports by 15 per cent. Depreciation of rupee by 26.7 per cent vis-à-vis US dollars. Fall of foreign exchange reserves to such a low level that they were barely adequate to meet the import requirements of a few weeks Non-resident Indians (NRIS) were withdrawing their deposits at an alarmingly high rate The confidence of the international financial institutions was badly shaken and in just over a year its creditworthiness rating fell from AAA to BB+ (put on credit watch). The country was on the verge of defaulting on international financial obligations and the situation warranted immediate policy action to save the situation. In May 1991, the Government had to lease 20 tons of gold out of its stock to the State Bank of India to enable it to sell the gold with repurchase option after six months. In addition, Reserve Bank of India was allowed to pledge 47 tones of gold to the Bank of England to raise a loan of $600 million Name one component of business environment affected in the above case. Explain it briefly