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.
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.
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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