Question

Three Marks Question:-
Explain 'Increasing competition' and 'More demanding customers' as impact of Government Policy changes on Business and Industry.

Answer 1

Impacts of government policy in India are:

(a) Increasing competition As a result of changes in the rules of industrial licensing, entry of foreign firms creates competition for Indian firms, especially in service industries like telecommunication, airlines, banking, insurance, etc which were earlier placed in the public sector.

(b) More demanding customers Customers today have become more demanding because they are well informed. Cut-throat competition in the market gives the customers wider choice in purchasing better quality of products and services.