Question

Briefly discuss the impact of government policy changes on business and industry.

Answer 1

Impacts of government policy changes on business and industry are:
(i) Increasing competition Changes in the rules of licensing and entry foreign firms has increased the competition for Indian firms in many industries like banking, communication etc.
(ii) More demanding customers Due to increase in competition and availability of a large number of products, customers are becoming more choosy.
(iii) Market orientation Earlier, firms use to produce first and then sell the goods the market, but now, producers have become market-oriented, where they analyse the market first and then produce goods accordingly.