A variety of price-control measures have been implemented. These controls are both indirect and direct in nature. Indirect Control Indirect controls are primarily implemented through monetary, fiscal, and commercial (foreign trade) policies. Monetary policy refers to the Central Bank of the country’s policy regarding the cost and availability of credit. The rationale for using monetary […]
A policy can only be effectively implemented and the objectives met if the government has the authority to take the necessary steps. The Industries (Development and Regulation) Act was passed in 1951 with this goal in mind. Until the advent of economic liberalisation in 1991, firm entry, growth, and expansion were governed by licensing administered
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FERA FERA – the four-letter acronym for Foreign Exchange Regulation Act – is a piece of legislation that was enacted in 1973 with the goal of regulating certain dealings in foreign exchange, imposing restrictions on certain types of payments, and monitoring transactions involving foreign exchange and currency import and export. The Foreign Exchange Regulation Act
A multinational corporation (MNC) operates and generates at least 25% of revenue outside its home country, with offices and facilities globally. Advantages include increased market share and cost efficiencies, while disadvantages involve job outsourcing, monopolization, environmental impact, and ethical violations. MNCs can be decentralized, centralized global, international division, or transnational corporations, each with distinct structures and operations.
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The World Trade Organization (WTO) is a global organization facilitating international trade. It replaces the GATT and oversees trade agreements, dispute resolution, and adherence to regulations. Benefits include reduced trade barriers and investment liberalization, but criticisms revolve around disparities in negotiations and treatment of developing countries. Developing nations seek fairer representation and protection, particularly in agriculture and textiles trade.
Marketing orientation refers to the approach that governs a company’s processes, with marketers and marketing teams dictating strategies. Five key categories are production, product, sales, societal, and market orientation. Each has distinct advantages and disadvantages. Market orientation, centered on meeting consumer needs, is increasingly favored as customers become more knowledgeable and demand higher quality and variety.
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The General Agreement on Tariffs and Trade (GATT) was a treaty signed by multiple countries to promote international trade by reducing trade barriers like tariffs and quotas. The GATT significantly lowered tariffs, ultimately leading to the formation of the World Trade Organization (WTO). However, GATT had flaws, including a lack of enforcement authority and limited benefits for less developed countries.
Demand management is crucial for businesses to anticipate and meet customer demand. It focuses on understanding consumer needs, coordinating supply and inventory, and shaping operational strategies. Through demand forecasting and strategy development, businesses can optimize processes and reduce costs, ultimately boosting customer satisfaction and efficiency. This process involves seven key steps, from reviewing past data to optimizing the overall demand management process.
Production involves combining inputs to produce valuable goods or services. Production management directs a company’s operations to provide desired services and products by organizing and managing processes. It is a system with interconnected components, subsystems, and claimants, requiring effective communication and response to external variables. Production management includes selecting products, processes, planning, control, inventory, cost, and quality management, and decision-making for efficiency and competitiveness.
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Trade liberalization involves the reduction or removal of barriers to international goods exchange. Opponents argue it may lead to job loss and lower quality goods, while proponents claim it reduces consumer costs, boosts efficiency, and spurs economic growth. Examples include NAFTA and India’s economic reforms, which resulted in increased foreign investment and GDP growth but also sparked criticism for widening inequality and rural hardships.
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