When government came out with policy changes it laid some positive and negative impact on the business. Discuss some of them.
Positive impacts of government policy changes are:
(i) Investment in research and development In the present scenario, business units are investing more in research and development in order to associate with latest technology. It has enabled the faster growth of industries.
(ii) Creation of products as per the demand of customers With the entry of MNC’s in India, there has been increase in the demand of inputs. Now no shortage of goods persists in the market.
The customers are enjoying a surplus and good quality products of different brands. This helps in making the buyer sovereign to the market. Negative impacts of government policy changes are: (z) Threats from MNG With the entry of MNC in India, it has posed serious threat to domestic business and industries, due to the comparative advantage they have in terms of financial and technological resources.
(ii) Higher labour turnover ratio With the entry of MNC’s in India, there has been tremendous increase in the labour .turnover ratio. Hence, Indian industries are finding it difficult to retain its best brains with them.