Page 103 - DMGT401Business Environment

Business Environment

Notes 10. ………………… was established to put a tab on the outside currency flowing in the
economy.
11. Most of the SMEs face the problems in growth and development due to lack of
……………………
12. National income is also known as………………..
13. If in an economy, prices are rising but not steadily or prices are lowered but moderately,
the condition is called…………………
14. The rising requirement of crude oil is most likely to result in ………………. inflation in
India.
15. India is still facing a sluggish growth in its primary sectors specially farming. It resulted
in inflation caused due to ………………… constraints.

16. In an economy, if the price of good A in 2009 is ` 225 and current inflation rate is 5%, then
the price of good A in 2010 is most likely to be……………….

3.9 Review Questions

1. "The basis of international relations is also business". Comment.

2. Comment on the economic scene of the world at the time of World War 2. What was the
scenario in India around WW2?
3. "Even after more than 60 years of journey after independence, India has not come out as
developed country". Discuss, making comparisons between Indian, Japanese and South
Korean economies.
4. "The increasing population is eating up the fruits of development and economic growth".
Discuss.

5. What do you think, does national income give a correct picture of developments and
growth in an economy? Justify your answer.
6. How can the governments use national income to make international comparison of
people's living standards? Is this correct?
7. "There is no consensus on the argument that higher productivity of industries and increased
role of state lead to economic prosperity". Discuss.

8. Activity of any economy can be put up into five components. Analyse the case of Indian
economy and categorize major industries or sectors operating under each component.
9. With continuous economic growth, the labour force in the country is fast moving away
from primary and secondary sectors. Why?
10. Critically analyse the growth of the Indian economy pre LPG policy and post LPG policy.
11. "Inflation is not a general rise in prices but a continuous rise in prices". Discuss.

12. Being a student of Business environment, on what factors will you like to put a tab on to
control inflation in the economy?
13. "Inflation is considered the cruelest tax". Comment.

14. Discuss the impact of inflation on various interest groups in an economy. Also suggest the
minimise impact of inflation.

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