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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Globalization refers to the increasing interconnectedness of the world’s economies, cultures, and populations. It has economic, political, cultural, and ecological dimensions. Pros include economic growth and social justice, while cons involve wealth concentration and cultural homogenization. Its effects include lower prices, innovation, and job churn, and it is important due to its impact on businesses, politics, and the global market.
Competitors value market research and competitor analysis to gain a competitive edge. Technology offers benefits like real-time insights, competitive pricing, remote work, and improved online services. Businesses leveraging technologies effectively gain an advantage. To succeed, companies need a human-centered technology strategy, agile operations, data-driven decisions, and partnerships for innovation. Embracing technology and collaboration will be crucial for success in the digital age.
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The Indian Constitution has significant implications for businesses, particularly in the areas of fundamental rights, directive principles of state policy, and trade and commerce. The preamble outlines key principles such as sovereignty, socialism, secularism, and democracy, while fundamental rights protect equality, freedom, and religious and cultural practices. Additionally, directive principles guide economic and social policies, and constitutional clauses govern trade and commerce activities in Indian territory, ensuring economic unity and free flow of trade.
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The major economic functions of the government of an economy are: Although most people agree that the government should play a role in redistributing income in favor of the poor, providing public goods and services, and dealing with externalities, there is significant disagreement about how far the government should go in these areas—and about additional
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Large-scale industries in India, with over ₹10 crore in fixed assets, drive economic growth through job creation and foreign reserve import. Small-scale industries, with limited machinery and personnel, play a vital role in India’s economy, contributing to employment, per capita income, and resource utilization. These locally-focused enterprises produce 40% of India’s goods and significantly impact export and social development.
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The circular flow model in economics portrays the flow of products, money, and factor services in an economy. It includes major sectors such as households, businesses, government, and foreign trade. Three types of flows are illustrated: physical, monetary, and international. The equilibrium of injections and leakages determines the stability of an economy. (Word count: 50)
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