Home
Class 12
BUSINESS STUDIES
When government came out with policy cha...

When government came out with policy changes it laid some positive and negative impact on the business. Discuss some of them.

Text Solution

Verified by Experts

Positive impacts of government policy change are
(i) Investment in research and development: In the present scenario. business units are investing more in research and development in order to associate with latest technology. It has enabled the faster growth of industries
(ii) Creation of products as per the demand of customers: With the entry of MNC's in India, there has been increase in the demand of inputs. Now, no shortage of goods persists in the market. The customers are enjoying a surplus and good quality products of different brands This helps in making the buyer sovereign to the market
Negative impacts of government policy changes are
(i)Threats from MNC: With the entry of MNC in India, it has posed serious threat to domestic business and industries, due to the comparative advantage they have in terms of financial and technological resources
(ii) Higher labour turnover ratio :With the entry of MNC's in India, there has been tremendous increase in the labour turnover ratio. Hence, Indian industries are finding it difficult to retain its best brains with them.
Promotional Banner

Topper's Solved these Questions

  • BUSINESS ENVIRONMENT

    ARIHANT PUBLICATION|Exercise CASE STUDIES|21 Videos

  • BUSINESS ENVIRONMENT

    ARIHANT PUBLICATION|Exercise SELF ASSESSMENT (MULTIPLE CHOICE )|5 Videos

  • BUSINESS ENVIRONMENT

    ARIHANT PUBLICATION|Exercise CHAPTER PRACTICE (SHORT ANSWER )|25 Videos

  • CONSUMER PROTECTION

    ARIHANT PUBLICATION|Exercise CBSE Examinations Archive Long Answer Type Questions|7 Videos

Similar Questions

Explore conceptually related problems

The policy of liberalisation, privatisation and globalisation has made a significant impact on the working of enterprises. The Indian corporate sector has come face-to-face with several challenges, due to government policy changes. But these challenges have generated some values also. Describe them.

In the following table, some compounds are listed. In each case indentify the positive and negative radicals presents in the compound

In prokaryotes, the negatively charged DNA is held with some positively charged proteins in a region called as: