Question

What are the areas where small businesses feel threatened with the onslaught of global competition brought in by the LPG policy?

• A. Competition is not only from medium and large industries, but also from multinational companies which are
  giants in terms of their size and business volumes
• B. It is difficult to withstand the quality standards, technological skills, financial creditworthiness, managerial and
  marketing capabilities of the large industries
• C. There is limited access to markets of developed countries due to the stringent requirements of quality certification like ISO 9000
• D. All of the above

Answer 1

The correct option is D All of the above

All of the above are the areas where small businesses feel threatened with the onslaught of global competition brought in by the LPG policy i.e.

• Competition is not only from medium and large industries, but also from multinational companies which are giants in terms of their size and business volumes
• It is difficult to withstand the quality standards, technological skills, financial creditworthiness, managerial and marketing capabilities of the large industries
• There is limited access to markets of developed countries due to the stringent requirements of quality certification like ISO 9000.

LPG ( Liberalisation, Privatisation and Globalisation) enlarged the scope of private sector participation to almost all industrial sectors except three (modified). Simultaneously, the policy has given welcome to foreign investment and foreign technology. Since 1991, the country’s policy on foreign investment is gradually evolving through the introduction of liberalization measures in a phase wise manner.