ASSIGNMENT

Subject: Business Environment

Program: PGPPE Semester: 2
Faculty Name: Sumesh Sharma
Section: PGP2A
Type: Individual (PINKY CHOUDHARY)
Marks: 20

Email-id: sumesh.kumar@rbs.edu.in

 Description of the Assignment:

1)The Environment Protection Act 1986.

SOLUTION:-
INTRODUCTION…………….

 In 1980, the department of environment was established in India.

 Later on it became the ministry of environment and forest in 1985.
 EPA, 1986 came into force soon after the Bhopal Gas Tragedy.

OBJECTIVES………….

 Objective is, to provide the protection and improvement of

environment.
 In EPA, article 48 A, specify that the state shall protect and
improve the environment.
  Also to safeguard the forests and wildlife of the country.
 Acc. to sec 51(A) every citizen shall protect the environment.
 EPA is applicable to whole India , including J & K.

IMPORTANT TERMINOLOGY………….

 “ENVIRONMENT” It includes water, air, and land and the

interrelationship which exists among and between water, air and land
and human beings, other living creatures, plants, microorganism and
property.
 “ENVIRONMENTAL POLLUTANT” means any solid, liquid or
gaseous substance present in such concentration as may be, or tend to
be injurious to environment.
 “HAZARDOUS SUBSTANCE” means any substance or preparation
which, by reasons of its chemical or physico-chemical properties, is
liable to cause harm to human beings or other living creatures.
 “HANDLING” in relation to any substance, it means the
manufacturing, processing, treatment, packaging, storage ,
transportation, use, collection, destruction , conversion, offering for
sale, etc.
 “ENVIRONMENTAL POLLUTION” means imbalance in
environment. The materials or substances when after mixing in air,
water or land alters their properties in such manner, that the very use
of all or any of the air, water and land by man or any other living
organism becomes lethal and dangerous for health.
 “OCCUPIER” it means a person who has control over the affairs of
factory or the premises, and includes, in relation to any substance, the
person in possession of the substance.

POWERS PROVIDED BY THE ACT TO CENTRAL

GOVT………………..

To make rules to regulate environmental pollution.

To notify standards and maximum limits of pollutants of air, water,
and soil for various areas and purposes.
Prohibition and restriction on the handling of hazardous
substances, and location of industries (Sections 3-6)
Under Sec (3): may constitute authority or authorities for the
purpose of exercising of performing such of the powers and
functions.
Under Sec (4): may appoint a person for inspection.
Under Sec (5): may issue directions in writing to any officers or
any authority to comply.
Under Sec (6): it empowers the government to make rules to
achieve the object of the Act.
Under Sec (7): persons carrying on industry, operation etc. not to
allow emission or discharge of environmental pollutants in excess
of the standards.
Under Sec (8): persons handling hazardous substances must
comply with procedural safeguards.

PENALITY……………

 Whoever person found to be the cause of pollution, may be

liable for punishment for a term which may extend to one lakh
rupees or both (Sec 15, 16, 17). If not comply fine of Rs. 5000
per day extra, still if not comply for more than one year, then
imprisonment may extend up to 7 years.
 Section 17 specifies that Head of the department/ in-charge of
small unit may be liable for punishment if the owner/ occupier
produce enough evidence of innocence.
 The State Govt. has power to close or cancel or deny the
authorization to run the factory/institution/hospital whichever is
causing pollution.

ENVIRONMENTAL LAWS………….

Following is a list of the environmental legislations that have come

into effect:-
 General
 Forest and wildlife
 Water
 Air
 1986- The Environment (Protection) Act
 1986- The Environment (Protection) Rules
 1989- The objective of Hazardous Waste ( Management and
Handling) Rules.
 1989- The manufacture, Storage, and Import of Hazardous
Rules.
 1989- The Manufacturer, Use, Import, Export, and Storage
of hazardous Micro-organism/Genetically Engineered
Organisms or Cells Rules.
 1991- The Public Liability Insurance Act and Rules and
Amendments, 1992

FOREST AND WILDLIFE…………….

o 1927- The Indian Forest Act and Amendments, 1984

o 1972- The Wildlife Protection Act, Rules 1973 and
Amendments 1991
o 1980- The Forest (Conservation) Act and Rules, 1981

WATER………………

 1882- The Easement Act

 1897- The Indian Fisheries Act
 1956- The River Boards Act
 1970- The Merchant Shipping Act
 1974- The Water (Prevention and Control of
Pollution) Act
 1991- The Coastal Regulation Zone Notification.
 AIR……………….

 1948- The Factories Act and Amendment in 1987

 1981- The Air (Prevention and Control of
Pollution) Act
 1982- The Air (Prevention and Control of
Pollution) Rules
 1982- The Atomic Energy Act
 1987- The Air (Prevention and Control of
Pollution) Amendment Act
 1988- The Motor Vehicles Act

2) What are trading blocks? Explain any five trading

blocks. What is their relevance in the global economy?

SOLUTION:-
DEFINITION………….

A trade block is a large free trade zone or near-free

trade zone formed by one or more tax, tariff and trade agreements.
Typically trade pacts that define such a block specify formal
adjudication bodies, e.g. - EUROPEAN UNION, WORLD
TRADE ORGANIZATION (WTO), OPEC

MAJOR TRADE BLOCKS…………….

1). EUROPEAN UNION (EU)

2). NORTH AMERICAN FREE TRADE AGREEMENT
(NAFTA)
3). SINGAPORE- AMERICAN FREE TRADE AGREEMENT
(SAFTA)
4). ORGANIZATION OF PETROLEUM EXPORTING
COUNTRIES (OPEC)
5). ASSOCIATION OF SOUTH EAST ASIAN NATION
(ASEAN)
6) SOUTH ASIAN ASSOCIATION OF REGIONAL
COOPERATION (SAARC)

NEED FOR TRADE BLOCKS………….

 Improve the relationship with the neighboring countries

 Abiding by theory of comparative advantage
 Promotion of specialization in production of certain goods
 Meeting the demand of neighboring countries or group
members
 Boosts countries to develop economic alliances to gain
buying and selling power

DEMERITS OF TRADE BLOCKS………………..

In a regional trade blocks the price offered within the block is

lower as compared to the global prices. Thus, a level playing field
is denied to countries outside the region.
 OPEC

HISTORY: - -The Organization of the petroleum exporting countries is

a permanent, intergovernmental organization, created at the Baghdad
Conference on September 10-14, 1960.
- Its head quarters are located in Vienna and
Austria.

FUNCTIONS: - The OPEC MCs coordinate their oil production policies in

order to help stabilize the oil market and to help oil producers achieve a
reasonable rate of return on their investment. This policy is also designed to
ensure that oil consumers continue to receive stable suppliers of oil.

OPEC FUND:- The OPEC Fund for international development is a multi

lateral development finance institution. It was established in January, 1976,
by the member countries of the organization of the petroleum exporting
companies. The secretariat carries out the executives functions of the
organization in accordance with the provision of the OPEC statute and the
direction of the Board of Governors.
MEMBERS: - Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya,
Nigeria, Qatar, Saudi Arabia, UAE, Venezuela.

Recent Activities of OPEC: - Indonesia withdrew its membership from

OPEC in 2008 as it became net importer of oil. But it expressed its interest
to return back to OPEC once it becomes net exporter of oil.
 ASEAN

 Established in 1967
 Its headquarters is located in JAKARTA, INDONESIA.
 5 founding members: - INDONESIA, MALAYASIA, PHILLIPINES,
SINGAPORE AND THAILAND.
 Later on joined by BRUNEI, MYANMAR, VIETNAM ETC.
 ASEAN free trade area (AFTA)
 ASEAN beyond trade has political role as visible by the formation of
ASEAN regional forum of which CHINA, INDIA AND USA are
members.
 ASEAN as a trading block has been a huge success leading to
prosperity and elimination of poverty in the member country.

SAARC

 The South Asian Association of Regional Cooperation(SAARC)

was established when its charter was formally adopted on
 December 8, 1985 by the heads of state or government of
Bangladesh, Bhutan, India, Maldives, Nepal , Pakistan, and Sri
Lanka.
 Its Headquarters are located in Katmandu, Nepal.
 SAARC provides a platform for the people of south Asia to work
together in a spirit of friendship, trust, and understanding it aims to
accelerate the process of economic and social development in
member states.
 In 2007 Afghanistan became its 8th member.
 SAARC has been a sheer failure.

AREAS OF COOPERATION

 Agriculture or Rural Development

 Health and Population Activities
 Women, Youth and Children
 Environment and Forestry
 Science and Technology and Meteorology
 Human Resources Development and
 Transport
 Recently, high level working groups

The SAARC Secretariat

o The SAARC Secretariat was established in Katmandu on 16 January,

1987. Its role is to coordinate and monitor the implementation of
SAARC activities, service the meetings of the association and serve as
the channel of communication between SAARC and the other
international organizations. The secretariat has also been increasingly
utilized as the venue for SAARC meetings.
o The Secretariat comprises the Secretary General, seven Directors and
the General Services Staff. The details of its officials and working
divisions responsible for areas of work.
 NAFTA

The NORTH AMERICAN FREE TRADE AREA is the trade block in

NORTH AMERICA created by the NORTH AMERICAN FREE TRADE
AMERICAN AGREEMENT(NAFTA) AND its two supplements, the
NORTH AMERICAN AGREEMENT ON ENVIRONMENTAL
COOPERATION (NAAEC) and the NORTH AMERIAN AGREEMENT
ON LABOR COOPERATION(NAALC), whose members are CANADA,
MEXICO and the UNITED STATES. It came into effect on 1 JANUARY
1994.

HISTORY OF THE IMPLEMENTATION

 The agreement was initially pursued by conservative governments in

the United States and Canada supportive of free trade, led by
Canadian Prime Minister Brian Mulroney, U.S. President George H.
W. Bush and the Mexican president Carlos Salinas de Gortari.
 The three nation NAFTA was signed on 17 December, 1992, pending
its ratifications by the legislatures of the three countries.
 There was considerable opposition in all three countries, but in the
United States it was able to secure passage after Bill Clinton made its
passage a major legislative initiative in 1993.

THE NAFTA SECRETARIAT

The NAFTA Secretariat, comprised of a Canadian Section, a Mexican

Section and a United States Section, is responsible for the administration of
the dispute settlement provisions of the NORTH AMERICAN FREE
TRADE AGREEMENT (NAFTA).
 Born in January 1994
 MEMBER NATION- US, CANADA AND MEXICO
 It’s the WORLD LARGEST FREE TRADE AREA
 Under NAFTA, All non-tariff barriers to agriculture were eliminated.
 Many tariffs are being eliminated over a period of 5-15 years.
 Two way trades between US and MEXICO has increased by more
than 55%.
 Two way trades between US and CANADA increased more than
50%.
 Huge benefits have accrued to the NAFTA member countries.
 NAFTA has been a roaring success.

EUROPEANUNION

 It is a family of Democratic European Countries.

 Committed to working together for peace and prosperity.
 Its Historical Roots lie in the Second World War
 Idea of European integration was conceived to prevent such killing
and destruction from ever happening again.

MEMBER - Austria, Belgium, Bulgaria, Cyprus, Czech Republic,

Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands,
Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden,
United Kingdom.
 THE EURO: Our Currency

• The Euro is the currency of 13 European Union countries: Belgium,

Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the
Netherlands, Austria, Portugal, Slovenia and Finland.
• Euro banknotes and coins have been in circulation since 1 January
2002 and are now a part of daily life for 315 million Europeans living
in the Euro area.
• The EUROSYSTEM which consist of the EUROPEAN CENTRAL
BANK (ECB) and the NATIONAL CENTRAL BANKS of the 13
countries belonging to the Euro area has the exclusive right to issue
Euro banknotes. All decisions on the designs, the denomination, etc.
of the Euro banknotes are taken by the ECB.

FIVE EU INSTITUTIONS

 EUROPEAN PARLIAMENT(ELECTED BY PEOPLE OF

MEMBER STATES)
 COUNCIL OF EUROPEAN UNION
 EUROPEAN COMISSION
 COURT OF JUSTICE
 COURT OF AUDITORS

ACHIEVEMENTS

• IT HAS ENSURED FREEDOM, SECURITY & JUSTICE.

• JOB CREATION.
• REGIONAL DEVELOPMENT & ENVIRONMENTAL
PROTECTION.
• IT HAS HELPED RAISED LIVING STANDARDS, BUILT A
SINGLE EUROPE WIDE MARKET.
• LAUNCHED The SINGLE EUROPEAN CURRENCY- THE EURO.
• IT HAS STRENGTHNED EUROPES VOICE IN THE WORLD.
RELEVANCE IN GLOBAL ECONOMY
• VAST DIFFERENCE IN ECONOMIC DEVELOPMENT..
• INDIA IS A DEVELOPED ECONOMY OF SOUTH ASIA .OTHER
CONTRIES ARE LESS DEVELOPED.
• PURCHASING POWER OF THESE CONTRIES IS VERY
LOW.THEY CANNOT ACT EVEN AS A MARKET OF INDIAN
GOODS.
 India’s TRADE WITH ASEAN IS MORE THAN 20 TIMES THAN
IN CASE OF SAARC.
 IN SOUTH ASIA INDIA IS THE LARGEST COUNTRY.IT
OCCUPIES MORE THAN 70% OF GEOGRAPHICAL AREA.
 SO OTHER NATIONS FEEL THAT STRENGTHENING SAARC
MEANS EMPOWERING INDIA.
 SERIOUS BILATERAL DISPUTES BETWEEN TWO MAJOR
SOUTH ASIAN POWERS i.e. INDIA & PAKISTAN.
BILATERAL DISPUTES AND DIFFERENCES BETWEEN
OTHER MEMBER COUNTRIES.
 INDIA, BANGLADESH DISPUTE.
 INDIA, NEPAL DISPUTE.
 NEPAL, MYNMAR DISPUTE.
 PAKISTAN, BANGLADESH DISPUTE.

• IN ASEAN ALL COUNTRIES ARE OF EQUAL GEOGRAPHIC

SIZE.
• LEVEL OF ECONOMIC DEVELOPMENT IS THE SAME IN ALL
COUNTRIES.
• COMMON FEAR OF COMMUNIST CHINA
• ALL OF THEM HAD SIMILAR ECONOMIC POLICIES.THEY
ALL INTRODUCED ECONOMIC LIBERALIZATION IN 1960s
WHICH FURTHER ACCLERATED ECONOMIC GROWTH.
• WAY OF FUNCTIONING OF ASEAN BASED ON TWO
PRINCIPLES:
1. MUSYAURARAH (CONSENSUS).
2. MUFAKAT (CONSULATATIONS).