QUESTION PAPER REVIEW 2013

SAQ’S

a. PQLI• The Physical Quality of Life Index (PQLI) is an

attempt to measure the quality of life or well-being of a country.

• It was developed for the Overseas Development Council in the mid-1970s by David Morris.

• The value is the average of three statistics:– basic literacy rate, – infant mortality, and – life expectancy rate• The UN Human Development Index is a more widely

used means of measuring well-being.

b. Elements of Political Environment

• Types of Political systems– Democracy– Monarchy (kings rule)– Theocracy (religion based)

• Political Institutions– Legislature: makes laws for country– Executive: enforces laws and administers– Judiciary: punishes who break the laws

• Impact of political environment– Ideology of government– Political Stability in the country– Relation of government with other countries

c. Measures of Economic growth

• Human development index• Human Poverty index

d. Globalisation• Process of Transition from a closed economy to

an open economy.• Process of integration of world into one huge

market.• Removal of all trade barriers among countries• No political and geographical barriers• At company level– Having manufacturing plants in various countries– Ability to compete in domestic markets with foreign

competitors

e. Define Business Environment

According to Keith Davis:“business environment is the aggregate of all

conditions, events that surrounds and affect it”

According to Andrews:“ the environment of a company as the pattern of all

external influences that affect its life and development”

f. Market Structure of Telecom Sector

g. Industrial Policy Resolution- 1948

• Monopoly of State: arms and ammunition, atomic energy, railways.

• New undertakings to be established by State: coal, iron, steel, aircraft, telephones, shipbuilding.

• Industries central government will plan and regulate but allow private sector to operate: machine tools, heavy machinery, chemicals and fertilizers, textiles, cement, sugar etc.

• Foreign capital allowed but ownership would remain in Indian hands

h. Rationale (Reasons) and Gains for Global Outsourcing

• Concentration on core business• Special Expertise• Strategic focus• Financial Savings (Labor Cost)• Increased resources and revenue• Time zone advantage• Faster and better services

i. Challenges of Austria

j. European Union

• The European Union (EU) is a political entity consisting of 28 member states that are located primarily in Europe.

• Founders: France, Belgium, Luxembourg, Italy, Netherlands, Germany (November 1, 1993)

• Write name of 28 COUNTRIES OF EUROPE• Location : Brussels, Belgium• Population: 507,416,607• GDP: $ 18.124 trillion (2014)• Currency : Euro, 23 Official Languages• JEAN CLAUDE JUNCKER, PRESIDENT, EUROPEAN COMISSION

k. Activities of SAARC• To promote the welfare of the peoples of SOUTH ASIA

and to improve their quality of life,• to accelerate economic growth, social progress and

cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potentials,

• to promote and strengthen collective self-reliance among the countries of SOUTH ASIA,

• to contribute to mutual trust, understanding and appreciation of one another's problems,

• to promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields,

l. Brief Country Profile of Pakistan• Capital City ::- Islamabad• Population :- :- 90,291,129 (July 2012 est.)• Total Area :- 796,095 sq km• Life Expectancy rate :- 66.35 yr• Literacy rate :- 54.9%• Muslim: 97% (Sunni 77%, Shi'a 20%),• Christian, Hindu, and other (inc. Sikh): 3%• Islam is practised by the majority of Pakistanis

and governs their personal, political, economic and legal lives.

n. Overview of South America

• Brief Country Profile:– Area 17,840,000 km2

– Population 385,742,554 (2011, 5th), Pop. density 21.4/km2 – South American Countries 12 – Languages Portuguese, Spanish, Arabic

• Trade Blocs in SA– Mercosur– Andean Community– UNASUR

LAQ’s

2. Economic Systems• Capitalistic Economic System

– Meaning– Features– Advantages & Disadvantages– E.g.

• Socialistic Economic System– Meaning– Features– Advantages & Disadvantages

• Mixed Economic System– Meaning– Features– Advantages & Disadvantages

• Comparison of all three

4. Provisions of Industries (Development and Regulation Act 1951)

5. Market Structure and Profile of Textile Industry

• Sectoral Analysis• Market Structure• Recent Developments• SWOT Analysis

Sectoral Analysis :Textiles

• Textile Industry in India is the second largest employment generator after agriculture.

• It holds significant status in India as it provides one of the most fundamental necessities of the people.

• Textile industry was one of the earliest industries to come into existence in India and it accounts for more than 30% of the total exports. In fact Indian textile industry is the second largest in the world, second only to China.

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Sectoral Analysis :Textiles

• Textile Industry is unique in the terms that it is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every stage of processing.

• Textile industry in India has vast potential for creation of employment opportunities in the agricultural, industrial, organised and decentralised sectors & rural and urban areas, particularly for women and the disadvantaged.

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Sectoral Analysis :Textiles• Indian textile industry is constituted of the

following segments:– Readymade Garments– Cotton Textiles including Handlooms– Man-made Textiles – Silk Textiles– Woolen Textiles – Handicrafts– Coir– Jute

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Sectoral Analysis :Textiles

• Till the year 1985, development of textile sector in India took place in terms of general policies.

• In 1985, for the first time the importance of textile sector was recognized and a separate policy statement was announced with regard to development of textile sector.

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Sectoral Analysis :Textiles• In the year 2000, National Textile Policy was

announced.• Its main objective was:– to provide cloth of acceptable quality at reasonable prices

for the vast majority of the population of the country, to increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and to compete with confidence for an increasing share of the global market.

• The policy also aimed at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion.

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Strengths of Indian Textile Industry

• India has rich resources of raw materials of textile industry. It is one of the largest producers of cotton in the world and is also rich in resources of fibers like polyester, silk, viscose etc.

• India is rich in highly trained manpower. The country has a huge advantage due to lower wage rates. Because of low labor rates the manufacturing cost in textile automatically comes down to very reasonable rates.

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• India is highly competitive in spinning sector and has presence in almost all processes of the value chain.

• Indian garment industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or export markets.

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Weaknesses of Indian Textile Industry

• Indian textile industry is highly fragmented in industry structure, and is led by small scale companies.

• The reservation of production for very small companies that was imposed with the intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry.

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Weaknesses of Indian Textile Industry

• Smaller companies do not have the fiscal resources to enhance technology or invest in the high-end engineering of processes. Hence they lose in productivity.

• Indian labour laws are relatively unfavorable to the trades and there is an urgent need for labour reforms in India.

• India seriously lacks in trade pact memberships, which leads to restricted access to the other major markets.

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Opportunities and Challenges for Indian Textile Industry

• The outlook for textile industry in India is very optimistic.

• It is expected that Indian textile industry would continue to grow at an impressive rate.

• Textile industry is being modernized by an exclusive scheme, which has set aside $5bn for investment in improvisation of machinery.

• India can also grab opportunities in the export market. The textile industry is anticipated to generate 12mn new jobs in various sectors.

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6. Indicators of Globalisation

• International Trade• FDI• Migration

7. Economic Environment of Europe

• Introduction• Policies in Europe• Euro Countries• European Union• Prospects and problems of doing business in

Europe

8. Similarities and differences between SAARC Nations

• Introduction of SAARC • SAARC Nations• In short business environment of all SAARC

Nations• Similarities and differences

Structure of Economies in SAARC Region

• SAARC economies are basically rural in nature.• Agriculture plays a vital role in SAARC region.• Service Sector plays major role than

agriculture in India, Pakistan & Sri Lanka.• Expansion of Industrial Sectors.• Diversification of Economies- from production

of primary products to that of manufactured goods.

9. Business Environment in Brazil

• Brief Country Profile of Brazil• Economic environment– Tax Structure– Infrastructure– Economic growth– Social Structure (Culture, Religion, Foods, Festivals

etc…)• Problems and Prospects of doing business in

Brazil

10. Economic Reforms• The process of economic reforms was started by

the government of India in 1991 for taking the country out of economic difficulty and speeding up the development of the country.

• Govt. of India initiates various actions including preparing budget, setting interest rates etc.

• Major economic reforms were LPG.• Liberalization means to reduce unnecessary

restrictions and controls on business units imposed by government.

Objectives of Economic Reforms of India

• Liberalization and opening up of economy• Proper distribution of resources• Balance between various sectors• Minimize poverty• Reduce the rate of unemployment• To remove restrictions on FDI• Making public sector more effective

Economic Reforms after 1991• Tax Reforms– Simplified & lowered Direct and Indirect Tax– Custom duties and Excise duties reduced

• External Sector Reforms– Reduced trade barriers– Globalisation, Liberalization– Removal of Import License

• Reforms in Industrial Sector– Licensing procedures reduced– Reservation of industries for investment only by

public sector was removed.– Allowing FDI

• Reforms In Infrastructure Sector– Involvement of private sector which was

restricted earlier

• Reforms in financial sector– Entry of foreign & new private banks

• Reforms in Agriculture Sector– Removal of constraints on interstate movement of

food grains– Allowing trading in agricultural commodities

Industrial Policy Resolution-1991

• Incentives for industrialization of the backward area.

• Development of technology through greater investment in R&D.

• Remove restrictions• Enhanced support to small sector• Focus on exports