Metlapp Networks and Technologies Ltd. is a leader in technology innov

1.	Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India.It set up its office in Jamnagar with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers.1. In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts. 2. Also, explain briefly any three impacts of these concepts on Indian business and industry.
Answer» (1) In the given paragraph, following two major concepts related to government policy have been discussed : (a) Liberalization – Liberalisation means the extensive reduction in government regulations and making business enterprises free from direct or physical controls. Liberalisation includes the following: 1. Abolishing licensing requirement in most of the industries except a short list. 2. Freedom in deciding the scale of business activities i.e., no restrictions on expansion or contraction of business activities. 3. Removal of restrictions on the movement of goods and services. 4. Freedom in fixing the prices of goods and services. 5. Reduction in tax rates and lifting of unnecessary controls over the economy. 6. Simplifying procedures for imports and exports. 7. Making it easier to attract foreign capital and technology to India. (b) Globalisation – Globalisation refers to the growing economic interdependence among countries. Globalisation ensures free movement of capital, technology, labour and manpower. Following are the features of globalisation : 1. Liberalisation of import licensing. 2. Rationalisation of tariff structure. 3. Reforms in foreign exchange management. 4. Reduction in custom duties. 5. Lifting of restrictions on imports. 2. Following are the impacts of liberalisation and globalisation on Indian business and industry : Increasing competition – Asa result of changes in the rules of industrial licensing and entry of foreign firms, competition for Indian firms has increased especially in service industries like telecommunications, airlines, banking, insurance, etc. Loss of budgetary support to public sector – As a result of changes in the government policy, there is a greater role for privatisation and lesser role for public sector. Consequently, budgetary support of the government for public sector has been declining over the years. Professional management – Asa result of global outlook, work culture has improved in India. Management has become professionalised. Managers and workers have become more conscious about quality and cost.

Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India.It set up its office in Jamnagar with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers.1. In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts. 2. Also, explain briefly any three impacts of these concepts on Indian business and industry.

Answer»

(1) In the given paragraph, following two major concepts related to government policy have been discussed :

(a) Liberalization – Liberalisation means the extensive reduction in government regulations and making business enterprises free from direct or physical controls. Liberalisation includes the following:

1. Abolishing licensing requirement in most of the industries except a short list.

2. Freedom in deciding the scale of business activities i.e., no restrictions on expansion or contraction of business activities.

3. Removal of restrictions on the movement of goods and services.

4. Freedom in fixing the prices of goods and services.

5. Reduction in tax rates and lifting of unnecessary controls over the economy.

6. Simplifying procedures for imports and exports.

7. Making it easier to attract foreign capital and technology to India.

(b) Globalisation – Globalisation refers to the growing economic interdependence among countries. Globalisation ensures free movement of capital, technology, labour and manpower.

Following are the features of globalisation :

1. Liberalisation of import licensing.

2. Rationalisation of tariff structure.

3. Reforms in foreign exchange management.

4. Reduction in custom duties.

5. Lifting of restrictions on imports.

2. Following are the impacts of liberalisation and globalisation on Indian business and industry :

Increasing competition – Asa result of changes in the rules of industrial licensing and entry of foreign firms, competition for Indian firms has increased especially in service industries like telecommunications, airlines, banking, insurance, etc.

Loss of budgetary support to public sector – As a result of changes in the government policy, there is a greater role for privatisation and lesser role for public sector. Consequently, budgetary support of the government for public sector has been declining over the years.

Professional management – Asa result of global outlook, work culture has improved in India. Management has become professionalised. Managers and workers have become more conscious about quality and cost.

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