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Xaviers Institute of Business Management Studies
Marks: 80
Business Environment
Note: Attempt any five questions (question no. 1. is compulsory)
Question.1. Attempt any four of the following questions:
(a) Explain the relevance of ecological issues to business environment.
Answer: Ecological issues are of utmost relevance to the business environment due to their significant impact on businesses, economies, and society as a whole. The relationship between businesses and the environment is complex and interconnected, and understanding and addressing ecological issues have become essential for sustainable and responsible business practices. Here are some key reasons why ecological issues are relevant to the business environment:
1. Resource Scarcity and Availability: Ecological issues, such as depletion of natural resources and loss of
(b) Analyze the social responsibility of business towards employees.
Answer: The social responsibility of businesses towards employees, often referred to as “social responsibility towards the workforce” or “employee social responsibility,” encompasses a range of ethical and moral obligations that businesses have towards their employees. This responsibility extends beyond complying with labor laws and regulations and involves creating a work environment
(c) State the basic objectives of regulating business.
Answer: The regulation of businesses is carried out by governments and regulatory authorities to achieve various objectives that serve the broader interests of society, consumers, employees, and the economy as a whole. The basic objectives of regulating business include:
1. Protecting Consumers: One of the primary objectives of business regulation is to safeguard the interests of
2.
(d) Describe the basic instruments of fiscal policy in lndia
Answer: Fiscal policy in India refers to the use of government expenditure and taxation to influence the country’s economy. The government employs various instruments to implement fiscal policy effectively. The basic
(e) State various measures for the prevention and settlement of the industrial disputes.
Answer:
(f) Explain the thrust areas of the new economic policy.
Answer:
Question.2. Discuss how does the environment acts as a stimulant to business.Analyse why business often does little for physical environment preservation despite the fact that it is significant for business activity.
Answer: The environment acts as a stimulant to business in various ways, presenting both opportunities and challenges. Here are some ways in which the environment influences business:
1. Resource Availability: The environment provides essential natural resources such as water, minerals, raw materials, and energy sources that businesses depend on for production and operation. A favorable environment with abundant resources can stimulate business activity in resource-based industries.
2. Market Demand: Environmental
3.
Question.3. Analyze the fourfold role of the government in business. Also explain in what respects the role of government has been redefined in lndia during the 1990s.
Answer: The government plays a fourfold role in business, which encompasses various functions and responsibilities. These roles are:
1. Regulatory Role: The government acts as a regulator by formulating and implementing policies, laws, and regulations that govern various aspects of business operations. This includes regulations related to trade, competition, consumer protection, labor, environment, taxation, and corporate governance. The regulatory role aims to create a fair and transparent business environment, protect consumers and stakeholders, and ensure compliance with ethical and legal standards.
2. Promotional Role: As a
Question.4. “The Industrial Policy of 1991 makes a clear departure from the Industrial Policy of 1956” Comment.
Answer:
Question.5. Discuss the various forms of foreign capital flows. Do you think entering o{ MNC’s in less developed countries is risky ?
Answer: Foreign capital flows refer to the movement of financial investments across international borders. These capital flows can take various forms, each serving different purposes and implications for the economies involved. The main forms of foreign capital flows are as follows:
1. Foreign Direct Investment (FDI): FDI involves the direct ownership and control of assets in a foreign country by a multinational corporation (MNC) or an individual/entity. It typically
Question.6. Describe the recent export promotion measures of the Government of India.
Answer:
1. Export Credit Guarantee Corporation (ECGC) Scheme: The government enhanced the scope of the Export Credit Insurance Scheme (ECIS) to provide higher insurance coverage and reduce the premium rates for exporters. This measure aimed to boost confidence among exporters and enhance their access to credit.
2. Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme: The RoDTEP scheme was introduced to replace the earlier Merchandise Export from India Scheme (MEIS). It aims to reimburse the taxes and duties incurred on the export of goods and services to boost
Question.7. Write short notes on any two of the following:
(a) Political and legal environment of business
(b) Nehru – Mahalanobis strategy of development
(c) Financial reforms in India
(d) Merits of globalisation from the point of view of India’s s economic development
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