Question

Examine the impact of liberalization on companies owned by indian. Are the competing with the mncs satisfactorily?

Answer 1

Explanation:

Directive:

Examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction:

Begin with brief introduction on what you understand by liberalization.

Body:

Discussion should include the following:

First explain the effects of liberalization in general and then explain how it impacted the Indian companies and in what way is the impact different from that on the MNCs

Explain that Foreign direct investment (FDI) in India is a major monetary source for economic development in India. Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India.

Then discuss in what way it is helping the Indian companies to compete with other MNC’s successfully, what are the challenges associated etc.

Conclusion:

Conclude with way forward.