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1a) State the impact of social environment on business.
b) Examine how sociological environment affects and gets affected by the economic environment of business. Give examples.

2. State the main objectives of industrial policy, 1991. Critically assess the industrial policy of India particularly with respect to economic liberalization and globalization.

3. “Foreign Direct Investment (FDI) is increasingly important in economic development because of its close links in trade, financial flows and technology transfer”. Explain the above statement and examine the policy of the government in promoting foreign capital in India.

4. Discuss the role of public sector in India. Examine the achievements by public sector of India.
5. Write short notes:
a) Small Scale Industries.
b) Globalization.
c) Balance of Payments.
d) Social Responsibilities of Business.

Previous Jan 2020

  1. Discuss the macro environmental variables concerning business. Explain how socio- cultural environment affects business decisions giving examples.
  2. What are the various dimensions of the structure of Indian Industry? Describe the industrial structure on the basis of ownership pattern.
  3. Briefly discuss major trends in India’s foreign trade in the post-reform period with the support of data.
  4. Write a note on the changing role of government in recent past with suitable examples.
  5. Analyse the impact of economic reforms on the growth rate of GDP and employment and identify the reasons for fall in GDP and employment in the recent years.
  6. Write short notes:
    (a) Private Sector and Economic Development
    (b) Small Scale Industry (SSI)
    (c) Inflation
    (d) Foreign Direct Investment (FDI)

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Q1. Explain how business environment influences business management, giving suitable examples.


Answer: Management at all levels of specified functions is influenced by the critical elements of the business environment. The business environment influences business managements. The critical elements of the business environment often interact with the critical elements of business management. The critical elements of business management are: planning, direction, organization, control or coordination, leading and motivation and evaluation. Management all levels, top middle as well as supervisory, is concerned with these critical elements to certain degree. Similarly, these very critical elements are the concerns of the movement that specialties in different functions such as production, finance, marketing, purchase, inventory control, personnel, public relations, research and development etc.
…contd…

Q2. What are the factors responsible for inflation? As a student of management how would you look at the problems of inflation? Collect data on inflation for the last five years and analyse the trends.


Answer: Inflation means there is a sustained increase in the price level. The main causes of inflation are either excess aggregate demand (economic growth too fast) or cost push factors (supply-side factors).

Q3(a) Discuss the incentives given by the government to exporters as a part of EXIM policy.


Answer: On August 31, 2004 the Government spelt out a bold vision to double India’s share in world trade within five years, and to focus on the generation of additional employment in the process. The current trade figures indicate that India is not only on the right path but approaching the goal at an accelerated pace. 

FTP strategy is on the right track
When the five years Foreign Trade Policy was announced on August 31, 2004, the Government took cognizance of the fact that a bold and clearly delineated approach was needed to tap such opportunities. The Foreign Trade Policy articulated two basic objectives that would enable India to achieve these goals.
contd…

Q3(b) Examine the role of foreign trade in an economy.


Answer: Foreign trade between different countries is an important factor in raising living standards, providing employment and enabling consumers to enjoy a greater variety of goods.
 
International trade has occurred since the earliest civilisations began trading, but in recent years international trade has become increasingly important with a larger share of GDP devoted to exports and imports.

Q4. “The reform process has helped to accelerate the growth but the benefits of the growth have not percolated to poor and weaker sections of the society”. What measures would you suggest to modify reforms so as to achieve the objective of growth with social justice?


Answer: There is no doubt that we grow in every sector due to reform process but still many poor and weaker sections of the society have not benefited. So we will give to suggest for achievement of the objective of growth with social justice.

Population Control: This is the first and most important factor. Population in India has been increasing rapidly. Growth rate of population is 1.8%. For removal of poverty the growth rate of population should be lowered. So I will suggest for law amendment for population control for atleast 20-25 years.

Increase in Employment: Special measures should be taken to solve the problems of unemployment and disguised unemployment. Agriculture should be developed. Small scale and cottage industries should be developed in rural areas to generate employment. Government should give award who generate good employment.
contd..

Q5. Why is the study of Public Finance Theory important in understanding the fiscal system of an economy better? Elaborate.

Answer: Public finance theory explains the concepts like fiscal policy, its measures, Govt. revenue. The principles behind tax structure, the deficits & their implications, the reforms.

Public finance, like economics, has both positive and normative dimensions. Positive analysis is aimed at building models to show the effect of people reacting to economic and financial stimuli. Normative analysis provides the criteria which help us determine whether the predicted economic and financial changes are desirable.
…contd..