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: Business is an institution of organized & operated to provide goods & services to society under the incentive of private gain. Concept and components of Env:
Microeconomics is the general study of decisions, choices, and incentives at the individual and firm level. Macroeconomics is the The study of a national economy and of the international economy as a whole. Need and Technologies of environment scanning: Strengths: characteristics of the business or project that give it an advantage over others. Weaknesses: are characteristics that place the team at a disadvantage relative to others. Opportunities: elements that the project could exploit to its advantage. Threats: elements in the environment that could cause trouble for the business or project. The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats. Strengths: attributes of the organization that are helpful to achieving the objective. –Weaknesses: attributes of the organization that are harmful to achieving the objective. –Opportunities: externalconditions that are helpful to achieving the objective. –Threats: externalconditions that are harmful to achieving the objective. Fiscal policy refers to the use of government expenditures and taxation to influence the level of aggregate demand. Capitalism is an economic and social system in which participants privately own the means of production -- called capital. Free market competition, not a central government or regulating body, dictates production levels and prices How It Works/Example: Under capitalism, prices and wages are determined by the forces of supply and demand. Members of a capitalist economy are driven to obtain the maximum amount of utility ("benefit" or "profit") at the least cost. Privately owned industry caters to a consumer sector that wants goods and services of the highest value for the lowest price. Competition forces companies to keep prices low to attract consumers. The role of government in a capitalist society is to protect the legal rights of actors in the economy, not to regulate the free market system. In capitalism, the most effective companies are those that create the greatest amount of utility. The most inefficient companies will be forced out of the market when the consumer discovers he can obtain the same goods for a lower cost elsewhere. Why It Matters:Capitalism characterizes the behavior of the global economy. Since the disintegration of the Soviet Union, capitalism has become the dominant economic system worldwide. Capitalism is often considered the antithesis of Socialism -- an economic and political system where the ownership of capital (the means of production) is commonly owned. Socialist industry and production is regulated by the central government.The Efficient Market hypothesis, an ideal of capitalism, states that finance market prices are always at the correct level at any given time considering all public information and expectations. Supporters of this theory believe that prices are necessarily always fair and correct. Dissidents believe that prices are often the result of random mistakes and misunderstandings and do not always represent the true value of a stock. Through the ongoing balancing act of supply and demand, a capitalist economy is constantly striving to reach a level of long-term equilibrium where supply matches demand causing prices to stabilize. In the real world, political policy, natural weather events, consumer confidence and a whole host of other outside effects constantly affect the market, making the long-term equilibrium goal nearly impossible to achieve. Environmental Scanning & Monitoring Environmental scanningis a concept from business management by which businesses gather information from the environment, to better achieve a sustainable competitive advantage. To sustain competitive advantage the company must also respond to the information gathered from environmental scanning by altering its strategiesand planswhen the need arises.
Socialism is an economic system characterised by social ownership of the means of production and co-operative management of the economy. Mixed Economy: An economic system that includes a mixture of capitalism and socialism. This type of economic system includes a combination of private economic freedom and centralized economic planning and government regulation. Economic policy in India: The long term objective of Economic Planning were spelled out in various planned documents in the interim documents. Upto the 7th five year plan , broadly the main objcetives were:-
1).Economic gwoth, approximately 5%per annum. 2).Self Reliance 3).Removal of Unemployment. 4).Removal of Economic inequalities(govt. removes inequalities by various tech. like Nationalisation, putting money in the market, holding some of the institutions under its own control etc.) 5). Elimination of Poverty. 6).Modernisation. In the subsequent plans, they were simply related to the economic growth in Indian perspective. Various plans did not plays equal emphasize on these objctive, whereas earlier plas led stress on rapid economic growth more then any other objective. The 5th and 6th plan laid great importance to self reliance, generation of employment and removal of poverty. In the 7th plan, modernisation was stressed. The government which assumed in 1991 virtually abandoned these long term objectives of economic planning. Its entire concern was to implement a programme of Macro economics, stablisation through Fiscal correction.Moreover, trade, industrial and public sector policies aimed at undermining the very system of economic plannig.The 9th plan focused on accelerated growth,recongnizing a special role for agriculture, for its stronger poverty reducing and employment generating facts which will be carried out over a period of 15 years. Industrial Policy : In this twentieth century when science and technology have gained unquestionable supremacy, the level of the' industrial development of a country has become the yardstick to be applied to judge its actual development. All other progress has become meaningless; if a country is technologically backward, it is backward irrespective of any other excellence it might have acquired. It is a well-known fact that British Government never intended to develop the industries in our country during pre-independence period. After independence the people of this country entertained high hopes from the government for the betterment of their life it is the industrial development which provides basic infrastructure necessary for the development of the economy as a whole. Industrial Policy, 1948 and the Industries (Development and Regulation) Act, 1957 gave an idea of the attitude of the Government with regard to the development of industries. But, it was only the adoption of planning in 1951 which created a favorable atmosphere for the development of industries.The history of organized industry in India may be traced to 1854 when the real beginning of the cotton mill industry was made in Bombay. The foundations of jute industry were laid near Calcutta in 1855, Coal-mining also progressed about this time. There were the only major industries which had developed substantially before the First World War. During and after World war I and II, a somewhat more liberal policy was adopted by the authorities, such as, a discriminating protection policy, which gave impetus to industrial development. Several industries developed and a number of new industries came up but their production was neither adequate nor diversified in character.The development of the economy can be measured with the help of different criteria, such as the growth rate in industrial output, industry's contribution to national income, and industry's contribution to employment. A close application of these criteria divides the planned period into two distinct phases, the first lasting till 1965-66 and the second following there from. The economy took rapid strides daring the first three Five-year Plans but slowed down later. The Seventh Plan envisages a growth rate of 8 percent with some segments of industry registering a higher growth rate, but only time can unfold the future achievement. Since industry's contribution to national income and its capacity to generate employment have displayed similar trends, we cannot describe our industrial development as spectacular though there has been a spurt of new industrial complexes all over the country.The pattern of our industrial growth was determined by the state of economy in which the British left us. The British had used India as a source of cheap raw material and a lucrative market for finished products and they had not made any effort to develop the infrastructure. After getting independence, India immediately felt the need of capital goods and it was decided to promote the rapid growth of capital goods industries. Almost till the end of the Third Five-Year-Plan, India had to import a variety of capital goods including iron and steel, transport equipment and various kinds of machinery. But the situation has radically changed now. India is now in a position to export these capital goods even to the technologically advanced countries of Western Europe, America, Soviet Union etc. A significant feature of our industrial development has been the phenomenal growth of the public sector. This sector comprises public utility services like the railways, road transport, post and telegraph, power and irrigation projects, departmental undertakings of the Central and State Governments including the defence production establishments, and a number of other industrial undertakings which are wholly supported by the Central Government. The public sector now contributes about one-fifth of the share of industrial sector in the national income and the surpluses earned by it form an important source of non-tax revenue of the Government. It also offers job opportunities to a large number of people.If we aim at an accurate assessment of our achievement, we should either compare our industrial growth with the growth in other countries during the corresponding period or, we should measure our achievement in terms of our targets. Another yardstick can be to compare our achievement with our needs. This kind of assessment can be quite revealing. In 1947, Japan was in no better a position than India. If India had been ruthlessly exploited by the British and fiercely rocked by communal hatred; violence and bloodshed in the wake of partition, Japan was laid waste by atom bombs during the Second World War. But today, Japan is technologically one of the most advanced countries of the world. Our achievement has also fallen short of the targets laid down in the Five-year Plans. If we compare our performance with our needs and targets it is obvious that what we have achieved is too inadequate to meet them.
New Economic policies: 1. Liberalisation:The fundamental feature of the new economic policy is that it provides freedom to the entrepreneurs to establish any industry/trade/ business venture.The entrepreneurs are not required to get
prior approval for any new venture. What they need is that they have to fulfill certain conditions to get into a line of one's choice.The procedure involving a case by case examination of the proposals for new ventures has been wiped off. Apart from this the entrepreneurs no longer need licenses to come into business. The capital markets have also been freed and opened to the private enterprises.A new company can now be floated with new issue of shares, debentures etc. In case the entrepreneurs require imported equipment, they are no longer required to approach the central authority for foreign exchange. The area of liberalization is (i) licensing business, (it) Foreign Investment (iii) Foreign Technology (iv) Establishment, Merger, Amalgamation and taken over, and (v) Simple Exit policies.2. Extension of Privatization:Another feature of the new economic policy is the extension in the scope of privatization. Now, the majority of economic activities will be conducted by the private sector. In the wave of privatization, out of 17 industries reserved for public sector, 11 industries have been given to the private sector.Moreover, Govt has also privatized the ownership of some public sector undertakings by the sale of capital of some selected enterprises to the private sector.The field of privatization has further been extended by offering greater opportunities of investment to the foreign private investors. Economic Policy seeks to accord priority role to the private sector. Tendency to expand private sector is evident from the following facts:(i) Number of industries reserved for public sector has been reduced from 17 to 6. Private sector can now set up its units in the field of iron and steel, energy, air transport, etc.(ii) Till the end of 6th Plan, share of public sector in total investment continued to be greater than that of the private sector. It is intended to be reduced to 45% in the 8th Plan. Thus 8th Plan aims at raising the share of private sector investment to 55% of the total.(iii) Shares of public enterprises are to be increasingly sold to the workers and general public, with a view to increasing the participation of private individuals.(iv) A large part of industrial investment of the private sector to be financed by; National Industrial Finance Institutions. These institutions, while sanctioning loans for the new projects, used to exercise their right of 'Conversion' invariably. It implied the right of converting the loans into share capital by the Financial Institutions.Thus, the private firms were always under the constant threat of conversion. According to the New Industrial Policy, the Financial Institutions will not insist on the conversion clause. With the expansion of privatization there is every possibility of increase in productivity and efficiency.3. Globalization of Economy:The new economic policy has made the economy outwardly oriented. Now, its activities are to be governed both by domestic market as also the world market.It means unification of the domestic economy with the world, economy. In fact, this has become possible by various policy initiatives taken by the Govt. For instance, devaluation of rupee in June 1991 was intended to do away with the artificially controlled overvalued exchange rate of the rupee.Now, the rupee has been made fully convertible on current account of the balance of payments. Moreover, elimination of licensing of a large number of import items has enabled the importers to import any where in the world. The reduction in custom duties on imports has also been done to bring them in line with the duties in other countries of the world.In short, globalization means (a) Reduction of trade barriers with a view to allowing free flow of goods to and from the country.(b) Free flow of foreign capital in terms of investment i.e., direct and portfolio for ensuring conducive atmosphere.(c) Free flow of technology, and (d) Free movement of labour and manpower. 4. Market Friendly State:The role of the state is one that is confined to selected non-market areas and is largely to ensure a smooth functioning of the market economy.As compared to past, the ownership of some selected enterprises has been transferred to private sector. Its activities as owner of resources have been confined to two types of activities.One covers the activities which are badly needed for the operation of the economy and the other pertains to social services such as education, health, etc.However, more importantly, the state is to ensure a smooth functioning of the market. For this, the state has to ensure stability in the market through the use of macro economic policies. The state will also intervene in the market when it fails.5. Modernization:New economic Policy accorded high priority to modern techniques. It aims at to augment the growth rate of sunrise industries. In order to import technical dynamics to Indian industry, the Govt, decided to clear all foreign collaborations. Private entrepreneurs will be free to settle the terms of such collaborations on their own behalf.Moreover, Govt has also been trying to stimulate private entrepreneurs to establish their own research and development centers by offering them various tax concessions. Efforts are also being made to revive and modernize the sick industrial units both within the public and private sectors.6. New Public Sector Policy:Public sector attracted priority. In the words of Dr. Manmohan Singh, Finance Minister in Congress Govt. that this priority was given to the public enterprises in the hope that it will help to accumulate capital, industrialization, economic growth and removal of poverty.But none of these objectives were achieved. Thus, new economic reforms are trying to shift the emphasis from public to the private sector.
Fundamental Rights : Right to Equality: Right to Freedom: Right against exploitation: The details of Prohibition of traffic in human beings and forced labor are presented in this Article. Right to Freedom of Religion: Cultural and Educational rights:Saving of Certain Laws: Right to Constitutional Remedies:
The Directive Principles of State Policy: embodied in Part IV of the Constitution, are directions given to the State to guide the establishment of an economic and social democracy, as proposed by the Preamble. They set forth the humanitarian and socialist instructions that were the aim of social revolution envisaged in India by the Constituent Assembly. The State is expected to keep these principles in mind while framing laws and policies, even though they are non-justiciable in nature. The Directive Principles may be classified under the following categories: ideals that the State ought to strive towards achieving; directions for the exercise of legislative and executive power; and rights of the citizens which the State must aim towards securing. Despite being non-justiciable, the Directive Principles act as a check on the State; theorised as a yardstick in the hands of the electorate and the opposition to measure the performance of a government at the time of an election. Article 37, while stating that the Directive Principles are not enforceable in any court of law, declares them to be "fundamental to the governance of the country" and imposes an obligation on the State to apply them in matters of legislation. Thus, they serve to emphasise the welfare state model of the Constitution and emphasise the positive duty of the State to promote the welfare of the people by affirming social, economic and political justice, as well as to fight income inequality and ensure individual dignity, as mandated by Article 38. in order to ensure equitable distribution of land resources. Article 39 lays down certain principles of policy to be followed by the State, including providing an adequate means of livelihood for all citizens, equal pay for equal work for men and women, proper working conditions, reduction of the concentration of wealth and means of production from the hands of a few, and distribution of community
SEBI is headquartered in the business district of Bandra-Kurla complex in Mumbai. 2000. social security. It exist vis-à-vis with society. Public sector: The main objectives of public sector enterprises are to build a strong and sound base for heavy industries and to create infrastructural facilities for self-reliance and self-sufficiency in modem technological development.Preservation of ethical and moral values. EXIM POLICY: Features: (a) Agriculture : 1. When a publicly traded company becomes private. township an manpower. 7. With all its linkages the public sector has made solid contributions to national self-reliance. The Act enshrines the rights of the consumer such as right to safety. fertilizer factory at Sindri. yet at the same time consumer is equally vulnerable segment of the whole marketing system. is also mandated to promote the interests of and work for the economic uplift of the scheduled castes and scheduled tribes and protect them from discrimination and exploitation. greater welfare of the common man and rise in his standard of living through public ownership of means of production and development. have been passed to give effect to this provision. Article 43 also places upon the State the responsibility of promoting cottage industries. as opposed to criminal offenses as dictated by FERA. Attempts have been made to guard the interest of the consumer in a sporadic way till 1986. also known as Enforcement Directorate is situated in New Delhi and is headed by a Director. durability and services. etc. Article 39A requires the State to provide free legal aid to ensure that opportunities for securing justice are available to all citizens irrespective of economic or other disabilities. excluding goods for resale or for commercial purpose and services rendered free of charge and under a contract for personal service. Such townships have been very helpful in improving community life. maintenance and repair of sophisticated industrial plants. The main contributions of public enterprises to the country's economy maybe described as follows: 1. 11. Consumer: A consumer is any person who buys any goods for a consideration and user of such goods where the use is with the approval of buyer.Improving product quality towards R & D.Insurance (health.3.Goods: Goods mean any movable property and also include shares. (F) Gems & Jewellery Customs duty on import of rough diamonds is being reduced to 0%. The majority of consumers in the country are even unaware of the existence of consumer courts to which they make take their grievances. 5 crore under Market Access Initiative (MAI) has been earmarked for promoting cottage sector exports coming under the KVIC. Public sector has also contributed a lot towards the improvement of working and living conditions of workers by serving as a model employer. Article 48A mandates the State to protect the environment and safeguard the forests and wildlife of the country. Good working conditions and safety Reasonable working standards and norms Labour welfare services. heavy Electrical and equipment. They contribute to National Income Generation. counter that they lack sufficient funds and . chemical s and fertilizers. Although a consumer movement has yet to get going in India. woollen blanket in Panipat. 6. corporate taxes. The Rourkela Steel Complex. 3. Supply social harmless products. FEMA is applicable to all parts of India. existence of the act has stimulated the creation of many consumer organizations across the country. this has remained a "dead letter" despite numerous reminders from the Supreme Court to implement the provision.resources to "subserve the common good". was that it made all offenses regarding foreign exchange civil offenses. 3. The movement has not blossomed because not all of the organizations are active enough to make an impact. It covers public. Machine Tool plants in Rajasthan. we help them generate the same. but the day-to-day management is in private hands. and a decent standard of living. We consume what they produce ( services included). The total contribution from the public enterprises to the Exchequer increased from Rs. defense equipment.Overcoming imperfect information. 1986: Though consumer is the purpose and most powerful motivating force of production. The corporate Sector: A Corporate Sector is a section of society consisting of Companies/Industries/Business Houses. must also strive for the promotion of international peace and security. insurance. With the help of the technological capability. etc.942 crores during 1986-87 by way of exports.employees. “Cooperate social responsibilities” is defined as considering the impact of the company’s action on society. Community Development: Several public sector undertakings have developed townships to provide all the civic amenities to their employees. right to seek redressal and right to consumer education. however.Activist Functions:-Coordinating private activities. It has been manufacturing fuel efficient small cars and scooters. but financial constraints have prevented its full-fledged application. etc. 23.national. If you can’t find what you are looking for. fill in the form on the right and our representative will get in touch with you at the earliest.Responsibilities towards government. several legislations pertaining to agrarian reform and land tenure have been enacted by the federal and state governments. when Government of India enacted a comprehensive legislationConsumer Protection Act. Employment: Public sector has created millions of jobs to tackle the unemployment problem in the country.government. and Parliament has been empowered under Article 253 to make laws giving effect to international treaties. The y foster regional. following benefits shall be available to small scale sector: (d) Leather Duty free imports of trimmings and embellishments up to 3% of the FOB value hitherto confined to leather garments extended to all leather products. 5. By taking over many sick units. In addition. business has certain social responsibilities to discharge. Such plants have been established around the major public sector undertakings. Technology Oriented Electrical hardware technology park scheme is being to enable this sector to face zero duty regime under IT agreement. The Directorate is further divided into 5 zonal offices in Delhi. Import of rough diamonds is already freely allowed. excise and customs duty. processing. through the production of strategic capital goods. Social responsibilities of business are different for different sections of society. according to Article 51. housing construction. Public sector ha contributed to this programme by fostering the growth of ancillary industries and satellite planets. The basic infrastructure required for rapid industrialisation has been built up. transport. There area lacked basic industrial and civic facilities like electricity. Thus public sector is responsible for equitable economic development of various regions of the country. applies to all goods and services. The consumer need not have made full payment. etc. increasing public control over the national economy. Article 43A mandates the State to work towards securing the participation of workers in the management of industries. As a consequence. exploration an refining of oil. 8. In addition to the foregoing. wheat and wheat products. In addition. FEMA: The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA). Consumer rights organizations. The public sector has been responsible for adopting modern technology in production. A significant change that the FEMA brought with it. These clauses highlight the Constitutional objectives of building an egalitarian social order and establishing a welfare state. Social Justice : Public enterprises have contributed towards the achievement of constitutional objectives. Responsibilities towards society as a whole Prevention of environmental pollution. The public enterprises have saved valuable foreign exchange trough import substitution.Basic education. the Government of India has launched a national programme.The main objective behind the Foreign Exchange Management Act (1999) is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments.Updated details of FEMA notifications are given below. FEMA was introduced because the FERA didn’t fit in with post-liberalisation policies.Resisting bribing. Public enterprises have constructed roads and other infrastructural facility to link these townships to other parts of the country. The State. education. It is required to meet different needs of the society. recreation and accommodation Training and promotion Recognition and respect for hard work. These provisions aim at establishing a socialist state as envisaged in the Preamble. Mumbai. They generate income. Article 47 commits the State to raise the standard of living and improve public health. CONSUMER MOVEMENT : It was thought that passage of the Consumer Protection Act in India in 1986 would encourage consumers to stand up for their rights and lead to an overwhelming number of disputes in consumer courts. and federal legislation has been enacted to achieve this objective. Public enterprises have developed these facilities thereby brining about complete transformation in the socioeconomic life of the people in these regions. are a few examples of the development of backward regions by the public sector. but after the 86th Amendment in 2002. Sikkim and tribal areas of Bihar and M. there existed serious gaps in the industrial structure of the country. Chennai and Jalandhar and each office is headed by a Deputy Director. A newer concept. They are the industrial development side of our society. and right to choose.consumers. bureaucrat and administers. Public sector has laid strong and wide base for self-reliance in the field of technical know-how. There is a strong base of ancillary industries at several centers such as the Bokaro Industrial Complex. They have been helpful in reducing the concentration of economic power in private hands. and prohibit the consumption of intoxicatingdrinks and drugs injurious to health. Steel plants of Bhilai. Development of Ancillary industries: In order to encourage the development of small scale and medium-sized industries in the country. Hindustan Machine Tools at Bangalore. Responsibilities towards customers Providing goods and services at a reasonable price . the public sector has played an important role in the achievement of constitutional goals like reducing concentration of economic power in private hands. The Consumer Protection Act. woollen knitwear in Ludhiana. 2.Articles 41–43 mandate the State to endeavour to secure to all citizens the right to work.The State is also mandated by Article 48 to organise agriculture and animal husbandry on modern and scientific lines by improving breeds and prohibiting slaughter of cattle. 972 crores in 1986-87. in furtherance of this. creating a socialistic pattern of society.Service: Service of any description such as banking. Public sector accounts for about two-thirds of the total employment in the organised industrial sector in India. is defined as the ability of a cooperation to relate it’s operation and policies tosocial environment in ways that are mutually beneficial to both the company and society.Public health. The transition from a publicly traded and owned company to a company which is privately owned and no longer trades publicly on a stock exchange. in order to ensure equitable distribution of land resources. to safe guard the interest of the consumer then ever before.Defense. PRIVATIZATION : The transfer of ownership of property or businesses from a government to a privately owned entity. partial or total prohibition has been introduced in several states. The number has such organizations has more the doubled in the last few years so that there are now 600-800 organizations in the voluntary sector. Export restrictions like registration and packaging requirements are being removed on butter.” social responsibilities”. but do not include any auctionable claims. The public sector has considerably widened the industrial base of the country. Several enactments. in curbing anti-social monopolies.2 (b) Cottage Sector and Handicrafts 1. which constitute the market:the issuers of securities the investors the market intermediaries. particularly in the fields of heavy industries such as steel heavy. Cooperating with go of in social values. The State.Disaster relief. machine tools.Consumer Protection Councils: Councils have been setup in all states and at the center to promote and protect the rights and interest of consumers. Regular payment of taxes. Precision Instruments plants in Kerla and Rajasthan. etc. Infrastructural Growth and Development of the Economy. These councils are advisory in nature and can play important role in recommending consumer oriented policies to the state and central Government.Cooperating with go of in up gradation of environment. the Bhilai Steel Plant. the public sector has protected the employment of millions.Property rights. pensions)Unemployment. life. Contribution to Public Exchequer: In recent years. right to be informed. Joint sector: Joint sector industries are owned jointly by the government and private individuals who have contributed to the capital. they have undertaken research and development programmes in a big way. FEMA became an act on the 1st day of June. Further. RATIONALE FOR PUBLIC SECTOR: is considered a powerful engine of economic development and an important instrument of self-reliance. Rourkela and Durgapur. handlooms etc. the Heavy Engineering Corporation at Ranchi. public enterprises have reduced dependence on foreign knowhow. a living wage.Protecting the poor. Responsibilities towards employee Fair wages and regular payment. THE CONSUMER PROTECTION ACT. entertainment. coarse grains. These townships consists of houses. 1986. Kolkata. supply of electrical energy. Public sector has helped to fill up these gaps. Research and Development: As most of the public enterprises are engaged in high technology and heavy industries. For meeting these needs.Health. It has also helped in shaping off foreign domination or dependence.074 crores in 1982-83 to Rs.Intermediate Functions:-Addressing externalities. Making provision of health education and cultural services. However.Cluster initiatives.Environmental protection.. (c) Small Scale Industry With a view to encouraging further development of centres of economic and export excellence such as Tirupur for hosiery. The provisions of the Act are compensatory in nature. under Article 46.Consumer protection. Through the development of technological skill. It was also formulated to promote the orderly development and maintenance of foreign exchange market in India. SEBI GUIDELINES: The Securities and Exchange Board of India is the regulator for the securities market in India. 2.Providing pure public goods. Public enterprises have earned foreign exchange of Rs.. It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. we enable them achieve their goals. in accelerating public control over the national economy and in bringing about a socialistic pattern of society. 2. the public sector has made increasing contributions to the public sector in the form of dividend. An amount of Rs. joint and cooperative sectors. Offering an efficient consumer redressal mechanism Resisting profiteering and black arketing. water supply. and the units of Bharat Heavy Electrical at Bhopal. Minimizing ecological imbalance. They represent the Producer side of Economy and we represent the Consumer Side of Economy. Balanced Regional Development: Public sector undertakings have located their plants in backward and untrodden parts of the county.Article 44 encourages the State to secure a uniform civil code for all citizens. machinery and equipment in the country. SOCIAL RESPONSIBILITIES OF BUSINESS: As business operates in society. any person who hires/avails of any service for a consideration and any beneficiary of such services. private. established several Boards for the promotion of khadi. to prevent the concentration of wealth and economic power in few hands. by entering into the areas of consumer goods public sector has helped in maintaining the price level. it can’texist and grows unless it cares for society. in coordination with the state governments. Each zone is further divided into 7 sub-zonal offices headed by the Assistant Directors and 5 field units headed by Chief Enforcement Officers.societal growth. there has hardly been any unified action which would demonstrate their strength. and the federal government has. and there has been no active consumer participation in the movements. offices and agencies outside India owned or controlled by a person who is a resident of India. including two Constitutional amendments.Assets redistribution. and blame consumer organizations. groundnut oil and cashew to Russia. Consumers claim that the lack of consumer education makes them passive and apathetic. SEBI has to be responsive to the needs of three groups. Supply goods and services of promised quality. sincerity and loyalty Efficiency of redressing employees grievances. by eliminating discrepancies between various personal laws currently in force in the country. Article 50 requires the State to ensure the separation of judiciary from executive in public services. Rational & Extent of State Intervention: Minimal Functions:. Article 45 originally mandated the State to provide free and compulsory education to children between the ages of six and fourteen years. which include responsibilities towards 1. by bringing about a social revolution assisted by the State. The act is also applicable to all branches. and industrial development of the country by establishing industrial establishments in backward areas like Nagaland. maternity relief. in order to ensure judicial independence. Hyderabad and Hardwar. right to be heard. this has been converted into a Fundamental Right and replaced by an obligation upon the State to secure childhood care to all children below the age of six. 9. investors can no longer purchase a stake in that company.P.The FEMA head-office. public sector undertakings have successfully competed in the international market an they have secured turnkey projects in several countries of the world. 4. Foreign Exchange Earnings: Public sector has contributed a great deal in improving the balance of payments position of the county. Fillings of Gaps: At the time of independence. SEBI Committees: · Technical Advisory Committee · Committee for review of structure of market infrastructure institutions · Takeover Regulations Advisory Committee rimary Market Advisory Committee (PMAC) · Secondary Market Advisory Committee (SMAC) · Mutual Fund Advisory Committee. board or lodging. where such services are availed of with the approval of the person hiring the service. and have been used to support the nationalisation of mineral resources as well as public utilities. honesty. while Article 49 places an obligation upon the State to ensure the preservation of monuments and objects of national importance. it has resulted in sustained employment (particularly through nationalization of sick mills).Law and order.
(i) The WTO shall facilitate the implementation. 2. technology is used to improve the speed and the production of certain jobs and items. by using renewable sources of energy and recycling materials wherever possible. Objectives of WTO: Important objectives of WTO are mentioned below: (i) to implement the new world trade system as visualised in the Agreement. This process has speeded up dramatically in the last two decades as technological advances make it easier for people to travel. foreign investment. MNCs can contribute to: Efficiency Equity Participation Creativity Stability Divining. the significant contributions that organizations have made in laying the foundations for change.(iii) The WTO shall administer the Understanding on Rules and Procedures Governing the Settlement of Disputes. MNCs are usually superior/better than to their more local rivals at creating. education and training.. the WTO shall cooperate. which occur when oil and coal are burnt. 4.(ii) The WTO shall provide the forum for negotiations among its members co ncerning their multilateral trade relations in matters dealt with under the Agreement in the Annexes to this Agreement. by providing sustainable solutions which are beneficial to the local community. In general.The need for a supply of spare parts. IMPORT OF TECHONOLOGY: basically. regular employment and income for families. J. 2. it was merely a legal arrangement. MNCs refer to enterprises which own/control production activities outside their base/ home country. trade in services. such as an improvement in health and safety.blame the government for their inaction. (vi) to increase the level of production and productivity with a view to ensuring level of employment in the world. (See Stopford. . by not using coal as the primary source of energy is also beneficial to both local and global environments. MULTINATION CORPORATIONS: 1. IBM has operations in 82 nations. the WTO is a new international organisation set up as a permanent body. In any one solution not all the benefits mentioned are possible. It is designed to play the role of a watchdog in the spheres of trade in goods. The use of renewable sources of energy.Functions of WTO. Yet the involvement of the local community . Many MNCs are holding a large asset. It has been estimated that the 500 largest industrial corporations amount for 80% of the worlds direct investment and ownership of foreign affiliates. and which can be passed on through the community. Thus. The use of Appropriate Technology should be economically viable on a long-term basis for the community. sometime exceeding their host country's assets. collecting and cross-fertilising knowledge. use of local resources and local skills is at the heart of successful application of Appropriate Technology. as economies become more connected to other economies. in example: a computer based factory can make more cars faster than a person-based factory using non-powered based tools APPROPRIATE TECHONOLOGY: Appropriate Technology is used to solve technological problems throughout the world.This reduction of the emission of sulphur dioxide and nitrous oxides. administration and operation and further the objectives of this Agreement and of the Multilateral Trade Agreements. Carbon dioxide emissions. the need for specialists. and from generation to generation. (ii) to promote World Trade in a manner that benefits every country. (iii) to ensure that developing countries secure a better balance in the sharing of the advantages resulting from the expansion of international trade corresponding to their developmental needs. Two major recent driving forces are advances in telecommunications infrastructure and the rise of the internet. and which are sensitive to the need to reduce environmental pollution. and provide suitable employment opportunities. the need for consumer education. they have increased opportunity but also increased competition. 1982). 3. with the international Monetary Fund (IMF) and with the International Bank for Reconstruction and Development (IBRD) and its affiliated agencies. the particular need for consumer protection with regard to health-related products. Article III has set out the following five functions of WTO. Once a firm extends its business abroad. (iv) to demolish all hurdles to an open world trading system and usher in international economic renaissance because the world trade is an effective instrument to foster economic growth. This can have significant positive benefits for the local and global environments. its international operations assume new perceptions. intellectual property rights. and do business internationally. powerful pro-globalization and anti-globalization lobbies have arisen. (iv) The WTO shall administer Trade Policy Review Mechanism. reduces the emission of carbon dioxide. which usually need to be imported. by increasing the cost of the overall project. GLOBALIZATION: Name for the process of increasing the connectivity and interdependence of the world's markets and businesses. requiring additional costs and time. On the other hand. The solution should be of positive benefit to the community and individuals. and support by voluntary health groups. with the exception of sustainable supplies of wood. as appropriate. The author acknowledges criticism that the Indian consumer movement is elitist and considers the need to focus upon rural consumers. The former GATT was not really an organisation. (vii) to expand and utilize world resources to the best. (v) With a view to achieving greater coherence in global economic policy making. administration and operation of the plurilateral Trade Agreements. A wider range of skills. also decreases the likelihood of a sustainable solution to the problem. The use of renewable energy sources is also encouraged. 1. (1982): The World Directory of Multinational Enterprises. [Stopford. Use of local resources also cuts down overall costs. (viii) to improve the level of living for the global population and speed up economic development of the member nations. London: Macmillan]. thereby using the knowledge and experience which already exists. often expensive. A better understanding of consumer behaviours/market trends Technological requirements and competitors more A greater perspective of overall business environment and emerging dynamic changes. MNCs usually possess: A larger pool of management talent. and shall also provide the frame work for the implementation. (v) to enhance competitiveness among all trading partners so as to benefit consumers and help in global integration. as globalization becomes a more and more common feature of world economics.M. etc. WTO FEATURES: Some of the important functions and objectives of WTO are :. communicate. 3. bringing a number of distinct advantages. or occur with equal weighting. This normally requires specialist training.The use of high technology to solve a problem often involves the use of expensive components. The solution should be consistent with the culture(s) of the local community. increases the Greenhouse Effect . Sustainable solutions to technological problems are more likely to occur if local skills are used.
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