The scope of the term business environment includes in a broad sense both internal and external factors impacting the business, it is commonly used for external factors. Identifies Business Opportunities and Threats Businesses can identify a variety of possibilities and risks thanks to the business environment. When a business can quickly identify market opportunities, they […]
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Globalization is the process of eliminating barriers to trade between countries in order to enhance the integration, interconnectedness, and connectivity of manufacturing processes and capital markets, as well as the movement of financial resources, products, and services across borders, thus facilitating international trade and economic development in intricate ways. Globalization Factors The digital revolution: The
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Financial markets are the institutional arrangements for trading various types of financial assets and credit instruments such as currency, cheque, bank deposits, bills, bonds, and so on. The financial system of an economy operates through financial markets and institutions. Functions of Financial Markets These are the major functions of Financial Markets Types of Financial Markets
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Introduction of the Indian Financial System Lenders and borrowers can exchange funds through the financial system. In India, the financial system is governed by independent regulators in the insurance, banking, capital markets, and various service sectors. Thus, a financial system can play an essential role in a country’s economic growth by mobilizing surplus funds and
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Decisions are made in all areas of human endeavor. A glance at the newspaper headlines reveals the breadth of the range. The decision-making process involves economic, political, social, and technical considerations. However, the same decision-making process that may be observed for events worthy of inclusion on the front page of ‘Business Standards’ underpins even the
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A government license was necessary to launch new businesses or increase production. To encourage the establishment of new businesses in economically underdeveloped areas, incentives such as easy licensing and the subsidization of essential inputs such as electricity and water were used. This was done to address inequalities between regions of the country. Only after the
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A strategic state attempt to promote economic transformation, or the transition from lower to higher productivity activity, within or within sectors, is known as industrial policy. Industrial policy is any form of selective government action or policy that seeks to alter the structure of production to favor industries that are expected to provide better economic
Even before India gained its independence, the colonial government had established a planning board that operated from 1944 to 1946. Planning in India dates back to the 1930s. In 1944, three development plans were published by independent manufacturers and economists. Hence, planning was not entirely new to the economy even before independence. Soon after gaining
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An economy can be significantly impacted by the financial decisions made by households. For example, a household decision to consume more and save less can lead to an increase in employment, investment, and, ultimately, profits. Similarly, corporate investment decisions can have a significant impact on the real economy and corporate profits. Individual corporations, on the
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A strong reversal of the trend of statist economic expansion set in globally around 1980 and has become the hallmark of the new wave of economic reforms that has been sweeping the world. Privatization refers to the transfer of ownership and/or management of a business from the public to the private sector. It also refers
