Briefly discuss the impact of Government policy changes on business and industry.
Answers
SOLUTION :
The Impact of government policy changes on business and industry are :
(i) INCREASING COMPETITION :
Changes in the rules of licensing and entry of foreign firms has increased the competition for Indian firms in many industries like banking and communication.
(ii) MORE DEMANDING CUSTOMERS :
Due to increase in competition and availability of large number of products, customers are becoming more choosy. He is not regarded as the king of the market.
(iii) MARKET ORIENTATION :
Earlier, firms used to produce first and then sell the goods in the market, but now producers have become market oriented , where they analyse the market first and then produce goods accordingly.
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Answer:
The following points highlight the impact of government policy changes on the business and industry. ... Increased Competition: As a result of the policies such as relaxation of the licensing policy and reduction of import duties, the competition faced by the domestic firms increases.