Question

Very Short Answer Question:-
"Environment provides with constraints and opportunities."

Discuss with the help of an example.

Answer 1

The environment consists of constraints and opportunities. Constraints such as economic conditions, customs, government regulations, scarcity of natural resources, labour supply etc. restricts development of business in a country. For example, foreign direct investment in India is not picking up the way we expected due political and bureaucratic constraints. Environment offers various opportunities to a business. Large demand for products and changing trends and needs are opportunities for a business. For example, economic development and changing trends have created large demand for consumer electronics and luxury goods in India. There are several Indian and foreign companies competing for the market share in the attractive Indian consumer goods industry.