Comi

ll
aUni
ver
sit
y

Depar
tmentofAccount
ing&I
nfor
mat
ionSy
stems

Assi
gnmenton'
'
Str
uct
ureofBangl
adeshEconomy
"

Cour
seTi
tl
e:Dev
elopmentTheor
y&Bangl
adeshEconomy

Cour
secode:
311

Submi
tt o:S
edt hai
lyDas

Lect
urer
,
Depar
tmentofAccount
ing&I
nfor
mat
ionSy
stems,

Comi
l
laUni
ver
sit
y.

Submi
tedBy:As
t adMd.AbudDar
dahRumi
I
DNo:11806050

Sessi
on:2017-
2018

Depar
tmentofAccount
ing&I
nfor
mat
ionSy
stems,

Comi
l
laUni
ver
sit
y.

Submi
ssi
onDat
e:10t
hAugust,
2020.
"
Str
uct
ureofBangl
adeshEconomy
"
1)Char
act
eri
sti
csandsal
ientf
eat
uresofBangl
adeshEconomy

I
ntr
oduct
ion:
TheeconomyofBangl adeshisadev el
opingmar keteconomy .I
t'
sthe39t hl
argesti nthe
worldi nnomi nalterms,and30t hlar
gestbypur chasingpowerpar ity
;itiscl assif
ied
amongt heNextEl evenemer gingmar ketmi ddl
ei ncomeeconomi esandaf ronti
er
market .I
nt hef ir
stquar terof2019,Bangl adesh'swast heworld'
ssev ent hfastest
growingeconomywi t
har ateof7.3%realGDPannualgr owth.
DhakaandChi t
tagongar e
theprinci
palf i
nancialcenter
soft hecountr
y ,beinghomet otheDhakaSt ockExchange
andtheChi ttagongSt ockExchange.Thef inancialsectorofBangladeshi sthesecond
l
argesti ntheI ndi
ansubcont inent.Bangl
adeshi soneoft hewor l
d'
sf astestgr owing
economy .

 Ov
erv
iew:
Bangladeshhasmadest eadyalbeitincrementalprogr
esst owardgreat
ereconomic
fr
eedom dur i
ngt hepastf iveyears.Althoughi t
seconomyhasr emai
nedstuckinthe
mostlyunfreecat egory,it
sGDPgr owthdur i
ngt hesameper i
odhasbeenr obust
.A
welcoming atti
tude t owardf oreign investmentand r est
rai
nton t he gr
owth of
governmentmaypar t
iall
yexplai
nt hediscrepancy.

ForBangladeshfi
nal
lytobreaki nt
otheranksofthemoderatelyfree,thegovernment
wouldhav et omakeasust ained,multi
yeareff
ortt
oimpr ovet het hreerul
e-of-
law
i
ndicator
sandpermittheent
ryintothecountr
yofmorei
nter
national banksandthebest
pract
icestheywoul
dbringwit
ht hem.

Rul
eofLawv
iewMet
hodol
ogy:

 Pr
oper
tyRi
ght
s41.
0Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

 Judi
cial
Eff
ect
iveness36.
1Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

 Gov
ernmentI
ntegr
it
y26.
6Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

Anti
quatedrealpropertylawsandpoorr ecord-
keepingsy stemscancompl i
catel
and
andpropert
ytransacti
ons.Theweakj udi
ciaryissl
owandl acksindependence.Cont
ract
enf
orcementanddi sputesett
lementproceduresareineff
icient.Endemiccorr
upti
onand
cri
minali
ty,weakruleoflaw,l
i
mitedbur
eaucrat
ict
ranspar
ency
,andpol
i
ticalpol
ari
zat
ion
underminegov er
nmentaccountabil
i
tyandseri
ouslyimpedei
nvest
mentandeconomi c
growth.High-
profi
lecorr
upti
oncasesarecommon.

Gov
ernmentSi
zev
iewMet
hodol
ogy:

 TaxBur
den72.
7Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

 Gov
ernmentSpendi
ng94.
3Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

 Fi
scal
Heal
th76.
8Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

Thet opincomet axrateis25per cent ,andthetopcor porat

etaxr ateis45per cent.
Othertaxesincl
udeav al
ue-addedtax.Theov eral
ltaxburdenequal
s9. 1percentoftotal
domest i
cincome.Governmentspendi nghasamount edt
o13. 7percentofthecountry’
s
output(GDP)ov ert
hepastt hreeyears,andbudgetdef i
cit
shav eaveraged3.6percent
ofGDP.Publ i
cdebtisequiv
alentto34. 8percentofGDP.

Regul
ator
yEf
fi
ciency
viewMet
hodol
ogy:

 Busi
nessFr
eedom 52.
3Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

 LaborFr
eedom 68.
4Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

 Monet
aryFr
eedom 70.
0Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

Incr
ement alprogr essinstreamli
ningbusi nessregulat
ionshasbeenunder mi nedbyan
uncertai
nregulat oryenvir
onment ,
ashor tageoffinanci
ngt ools,andbur
eaucrati
cdel
ay s.
Bangladesh boast say oung and hard-worki
ng laborf orce and hasmade not able
progressinaddr essi
ngf ir
eandwor kpl
acesaf ety.Thegov er nmentsubsi
dizesenergy
and agr i
cultural pr oducts and mai ntai
ns pr i
ce cont rols for some essent i
al
pharmaceut i
cal products.

OpenMar
ket
svi
ewMet
hodol
ogy:

 Tr
adeFr
eedom 63.
6Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

 I
nvest
mentFr
eedom 45.
0Cr
eat
eaGr
aphusi
ngt
hismeasur
ement
.

 Fi
nanci
alFr
eedom 30.
0Cr
eat
eaGr
aphusi
ngt
hismeasur
ement

Thetot
alval
ueofexport
sandi mport
sofgoodsandser vi
cesequal
s38.2per centof
GDP.Theaver
ageappl
iedtar
if
frat
eis10.
7per cent
.Layersofnont
ari
ffbar
ri
ersimpede
dynami
cflowsoftrade.Governmentopennesstof orei
gninvest
mentisl esst han
aver
age.Thefinancialsectorremai
nsunder
devel
opedandv ul
nerabl
et ogover
nment
i
nter
fer
ence.Thelevelofstateowner
shi
pandcontr
olofbanki
ngisconsider
abl
e.

Ref
erence:

1) Ri
az, Al
i; Rahman, Mohammad Saj j
adur (2016)
. Routl
edge Handbook of
Cont
emporar
yBangladesh.Rout
ledge.p.165.ISBN978-1-
317-
30876-8.

2)"RealGDPGrowth:AnnualPer
centChange"
.imf
.or
g.I
nter
nat
ionalMonet
aryFund.
Ret
riev
ed3October2019.

3)ht
tps:
//www.
her
it
age.
org/
index/
count
ry/
bangl
adesh
2)Changei
ntheeconomi
cst
ruct
ureov
ert
ime

 I
ntr
oduct
ion:
Economicst r
ucturei sat ermt hatdescr i
best hechangi ngbalanceofout put,trade,
i
ncomesand empl oy mentdr awnf rom dif
ferenteconomi csect or
s– r anging from
pri
mar y(f
arming,fishing,mininget c)tosecondar y( manufact
uri
ngandconst ruction
i
ndustri
es)tot er
ti
ar yandquat er narysector s(touri
sm,banking,softwar
ei ndustri
es).
Changesineconomi cst r
uctur
ear eanat uralfeatur
eofeconomi cli
febutt heybr ing
chal
lengesintermsofr eall
ocatingf actor
sofpr oduction.

 Ov
erv
iew:
Ineconomics,str
uct
uralchangei
sashi
ftorchangei
nthebasi
cway
samar
ketor
economyfuncti
onsoroperat
es.

Suchchangecanbecausedbysuchf actorsaseconomicdev elopment ,globalshift

sin
capitalandl abor,changesi nresourceav ail
abi
li
tyduet owarornat uraldisasteror
discover yordepleti
onofnat uralr
esources,orachangeinpoli
ticalsy stem.Forexampl e,
asubsi stenceeconomymaybet r
ansformed int
o amanuf acturi
ng economy ,ora
regulatedmi xedeconomymaybel iberal
ized.Acurr
entdri
verofst ructuralchangei nthe
wor l
deconomyi sglobali
zation.Str
ucturalchangeispossi
blebecauseoft hedy namic
natureoft heeconomi csy st
em.

Patternsandchangesi nsect oralemploymentdr ivedemandshi f

tsthrought heincome
elasti
cit
y.Shi
ft
ingdemandf orbot hlocall
ysour cedgoodsandf orimpor t
edpr oductsis
af undamentalpar tofdev elopment .The st r
ucturalchanges t hatmov e count r
ies
throughthedev el
opmentpr ocessar eoftenviewedi ntermsofshi f
tsfrom primary,to
secondaryandf i
nall
y,toter
tiaryproduction.Technicalprogressisseenascr ucialinthe
processofstructuralchangeasi tinvol
v estheobsol escenceofski l
ls,vocati
ons,and
permanentchangesi nspendingandpr oducti
onr esult
inginstruct
uralunempl oyment.

Examples:Hi stori
cal
l
y,str
ucturalchangehasnotal way sbeenst ri
ctl
yf orthebetter
.
ThedivisionofKor eaandt hesepar at
epat hsofdev elopmentt akenbyeachst ate
exempl
ifies this.Korea underJapanese r ule was relat
ively unif
orm i n economic
str
uct
ure,butaf t
erWorldWarI I
,t hetwo countri
esunder wentdr ast
icall
ydi f
fer
ent
str
uct
ural changesduet odrast
icall
ydiff
erentpol
it
icalst
ructures.
Sout hKorea'seconomybeforethe1950smost lyconsi
stedofagr
icul
tur
e.Duri
ngthe
1960s and 1970s,Kor ea began to change t
heirstr
uctur
et oIT,micro sy
stems
technology,andal
soservi
ces.Morethan50%oft heworl
dusesaSamsungsmar t
phone,
whoseheadquar t
ersarelocatedthere.Today,SouthKorea'
seconomyi sthe15th
strongesteconomysyst
em.

IntheRuhrArea(Ruhrgebiet)inGermany ,theeconomywasmost l
ymarkedbycoaland
steeli
ndust
ry.Duri
ngandaf terthecoalcrisisbeganint he1960sand1970s,t
hisarea
start
ed t
o change its economi c struct
ures to ser
vices,IT and l
ogi
sti
cs.The cit
y
Dortmundopenedthef i
rsttechnologycent ernamed"Technologiepar
kDort
mund"inthe
1980s.Companiesincl
udingSi gnalIdunaandWi loarebasedthere.

Structur
alchange can be i
nit
iated by pol
i
cy deci
sions orpermanentchanges i
n
resources,popul
ati
onorthesoci et
y.Thedownfallofcommunism,f orexampl
e,i
sa
polit
icalchanget
hathashadfar
-reachi
ngeconomicimpli
cati
ons.

Ref
erence:

1)"
Str
uct
ural
ChangeDef
ini
ti
on|
Inv
est
opedi
a".I
nvest
opedi
a.Ret
ri
eved2016-
03-
04.

2) Etchemendy,Sebast
ian,ModelsofEconomicLi ber
ali
zat
ion:Regi
me,Powerand
CompensationintheIberi
an-Ameri
canRegi
on( 2009).APSA 2009Tor ont
oMeeti
ng
Paper
.Av ai
l
ableatSSRN:htt
p://
ssr
n.com/
abst
ract=1449085

3)Sharp,Margar
et(
1980)
."Thechall
engeoflong-
ter
m st
ruct
uralchange"
.Fut
ures.12
(5)
:370–385.doi
:
10.
1016/
0016-3287(
80)90091-
9.

4) Pasi
net
ti
,Lui
giL.(
1981).St
ruct
uralChangeandEconomi
cGr
owt
h.Cambr
idge:
Cambri
dgeUni
ver
sit
yPr
ess.I
SBN0-521-27410-
9.

5)
Fisher
,A(
1939)Pr
oduct
ion:
Pri
mar
y,Secondar
yandTer
ti
ary
,Economi
cRecor
d,June

6)Cl
ark,
C(1940)TheCondi
ti
onsofEconomi
cPr
ogr
ess

7)Leon,P.(
1967)St
ruct
uralChange and Gr
owt
hin Capi
tal
i
sm,Johns Hopki
ns,
Bal
ti
more

8)Foley
,JamesA.(2003).Kor
ea'
sdi
vi
dedf
ami
l
ies:f
if
tyy
ear
sofsepar
ati
on.London:
Rout
ledge.I
SBN0-
415-29738-
9
3)The nexus between t
he di
ff
erentelement
s ofbusiness
env
ironment exi
sti
ng in Bangladesh and her economic
per
formance

I
ntr
oduct
ion:
Thecombi nati
onofinter
nalandexter
nalfactorst
hati nf
luenceacompany'
soperat
ing
si
tuati
on.Thebusinessenvir
onmentcanincludefactorssuchas:cl
ient
sandsuppli
ers;
i
ts compet i
ti
on and owners;improvementsi nt echnology;l
aws and gov
ernment
acti
vi
ti
es;andmar ket
,soci
alandeconomictrends.

Anexampl
eofapar
tofabusi
nessenv
ironmenti
show wel
lcust
omer
s'expect
ati
ons
ar
emet.

 Ov
erv
iew:
Busi nessesdonotoper ateinav acuum butratherinadynami cenvir
onmentt hathasa
directinfluenceonhowt heyoperateandwhet hertheywil
lachievetheirobject i
ves.This
exter nalbusinessenvi
ronmenti scomposedofnumer ousout si
deor ganizationsand
forcest hatwe can group into seven keysubenv i
ronments,as( Fi
gur e)i ll
ustr
ates
economi c, poli
ti
cal and l egal
, demogr aphic, soci
al, compet i
ti
ve, gl obal, and
technol ogical
.Each of t hese sector
s creates a unique setof chal lenges and
oppor t
uniti
esforbusi
nesses.
Business owner s and manager s have a greatdealofcont roloverthe int
ernal
envir
onmentofbusi ness,whichcoversday-t
o-daydecisions.Theychoosethesupplies
theypur chase,whi chempl oyeestheyhir
e,thepr oductst heysel
l,andwheretheysel l
thosepr oducts.Theyuset heirski
ll
sandr esourcestocr eategoodsandservicesthat
willsati
sfyexi st
ingandpr ospecti
vecustomer s.Howev er,theexter
nalenvi
ronment al
conditi
onst hataf f
ectabusi nessaregenerall
ybey ondthecont r
olofmanagementand
changeconst antl
y.Tocompet esuccessful
ly,businessowner sandmanager smust
continuouslystudyt heenvir
onmentandadaptt hei
rbusinessesaccordi
ngl
y.

Noonebusi nessislargeorpower fulenought ocr eatemaj orchangesi ntheex ter

nal
envir
onment .Thus,manager sar eprimar i
lyadapterst o,r
atherthanagent sof,change.
Globalcompet i
ti
onisbasi cal
lyanuncont roll
abl
eel ementi ntheexternalenvi
ronment.In
somesi tuati
ons,howev er,af i
rm cani nfl
uenceext ernaleventsthroughi t
sst r
ategi
es.
Forexampl e,majorU.S.pharmaceut icalcompanieshav ebeensuccessf uli
ngettingthe
FoodandDr ugAdministrati
on(FDA)t ospeedupt heappr ovalpr
ocessf ornewdr ugs.

I
nr ecenty ears,the f
ivelargestcompanies inthe S&P Index—Google,Facebook,
Amazon, Microsoft
,andApple—havespentcloseto$50mill
iononl obby
ingacti
vi
ti
esin
thenati
on’scapitali
nanef f
orttohel
ppolicymakersunderstandthetechindust
ryand
thei
mpor t
anceofi nnovat
ionandan“open”inter
net
.

Let
’snowt
akeabr
iefl
ookatt
hesev
ari
edenv
ironment
ali
nfl
uences.

Economi cInfl
uences:Thi scategoryisoneoft hemosti mportantexternali
nfluences
onbusinesses.Fluctuat
ionsinthelevelofeconomi cactiv
itycr
eatebusinesscyclest hat
aff
ectbusinessesandi ndiv
idual
si nmanyway s.Whent heeconomyi sgrowing,f or
example,unempl oymentr at
esar elow,andi ncomel evelsri
se.Infl
ati
onandi nterest
rat
esar eotherareasthatchangeaccor dingtoeconomi cacti
vi
ty.Throughthepol i
ciesit
sets,suchast axesandi nter
estratel evel
s,agov ernmentat t
empt stost i
mul ateor
curtai
lthel ev
elofeconomi cactivi
ty.Inaddi t
ion,t
hef orcesofsuppl yanddemand
determinehowpr icesandquantit
iesofgoodsandser vi
cesbehav einaf r
eemar ket.

Poli
ti
calandLegalI nfl
uences:Thepol it
icalclimateofacount ryisanot hercriti
cal
fact
orf ormanager stoconsi deri nday-t
o-daybusi nessoper ati
ons.Theamountof
governmentact iv
ity
,thet ypesofl awsi tpasses,andt hegeneralpoliti
calstabil
it
yofa
governmentar et hreecomponent sofpoliti
calcl i
mat e.Forexampl e,amul ti
national
companysuchasGener alElectri
cwi l
leval
uat ethepol i
ti
calcli
mat eofacount r
ybef ore
deci
dingtol ocateapl antt here.Isthegov ernmentst able,ormi ghtacoupdi sruptt he
country
?How r estr
icti
vear et her egul
ati
onsf orfor
eignbusi nesses,includi
ngf oreign
ownership ofbusi ness pr operty and taxation? Impor ttari
ffs,quot as,and expor t
r
est
ri
cti
onsal
somustbet
akeni
ntoaccount
.

Demogr aphic Factors :Demogr aphi

cf actors are an uncontroll
abl ef actori nt he
businessenv i
ronmentandext r
emelyimpor tanttomanager s.Demogr aphyi sthest udy
ofpeopl e’
sv i
talstat
ist
ics,suchast heirage,gender ,raceandet hnicit
y ,andlocat i
on.
Demogr aphics help compani es defi
ne t he mar ketsf ortheirpr oduct s and al so
determinethesi zeandcomposi t
ionoft hewor kforce.You’l
lencount erdemogr aphics
asy ou cont i
nuey ourst udyofbusi ness.Demogr aphicsareatt hehear tofmany
businessdecisions.Businessestodaymustdealwi t
htheuniqueshoppi ngpr eferences
ofdi f
ferentgenerati
ons,whi cheachr equiremar keti
ngappr oachesandgoodsand
servi
cest ar
getedtotheirneeds.

SocialFact ors:Soci alfactors—ourat ti

tudes,v al
ues,et hics,andl if
estyl
es—i nfl
uence
what,how,wher e,andwhenpeopl epur chasepr oductsorser vices.Theyar edi ffi
cultto
predict
,define,andmeasur ebecauset heycanbev erysubj ective.Theyal sochangeas
peoplemov ethroughdi ff
erentlifestages.Peopl eofal lageshav eabr oaderr angeof
i
nterests,defyi
ngt raditi
onal consumerpr ofil
es.Theyal soexper iencea“ povertyoft i
me”
andseekway stogai nmor econt r
olovert heirti
me.Changi ngr ol eshavebr oughtmor e
womeni ntothewor kforce.Thisdev el
opmenti sincr
easingf ami lyincomes, heightening
demandf ort i
me-sav i
nggoodsandser vi
ces,changingf ami l
yshoppi ngpat terns,and
i
mpact ingi ndiv
idual s’abil
it
yt oachieveawor k-l
if
ebal ance.I naddi t
ion,ar enewed
emphasi sonet hicalbehav iorwi thi
nor ganizati
onsatal llevelsoft hecompanyhas
manager sandempl oyeesal ikesearchingf ort herightappr oachwheni tcomest o
genderi nequalit
y,sexualhar assment,and ot hersoci albehav ior
st hati mpactt he
potenti
al f
orabusi ness’scontinuedsuccess.

Ref
erence:

htt
ps:/
/opent
ext
bc.
ca/
busi
nessopenst
ax/
chapt
er/
under
standi
ng-
the-
busi
ness-
envi
ronment/
4)Changei
nbusi
nessenv
ironmenti
nthel
ightofr
ecentpol
icy
changes

I
ntr
oduct
ion:
Changei sinevi
tableineveryaspectofourl i
v es.I
nabusi nessenv i
ronment ,changemay
notal way sbewel comedbuti tisexpect ed.Changesi nt hebusi nessenv i
ronment
happenal lthetime.Theeconomyf l
uct uatesupordownonadai lybasis,f r
equent ly
causing busi nesses to alterthe way t hey oper at
e.New compet it
ors ent ert he
market placewhi leothersleave.Ever-
shi f
tingweat herpatternsandnat uraldisaster s
canf orceachangei nabusi nessenv ironmentascanpol i
ticalevents,war sandt he
adoption orr ejecti
on ofl aws and r ules.Adv anced technologies,product s and
i
nnov ation lead to change in a busi ness env i
ronmentas can popul ation shifts.
Businessesal soar eforcedtochangei nternallywhenakeyempl oyeeleaves,get ssick
ordies.

 Ov
erv
iew:
Someoft
hei
mpact
sofchangesi
ngov
ernmentpol
i
cyonbusi
nessandi
ndust
ryar
e:

1.I
ncr
easi
ngCompet
it
ion2.Mor
eDemandi
ngCust
omer
s

3.Rapi
dlyChangi
ngTechnol
ogi
cal
Env
ironment4.Necessi
tyf
orChange

5.Needf
orDev
elopi
ngHumanResour
ce6.Mar
ketOr
ient
ati
on

7.LossofBudget
ingSuppor
ttot
hePubl
i
cSect
or

8.Thr
eatf
rom Mul
ti
nat
ional
Cor
por
ati
ons9.Cor
por
ateVul
ner
abi
l
ity

10.EnhancedFocusonExpor
ts.

1.IncreasingCompet i
ti
on:Fi r
msar enow faci
ngcompet i
ti
onnotonlyf rom exist
ing
player
sandnewl ocalentrantsbutalsofr
om themul t
inat
ionalcompeti
tors.Theyhav e
tocompet ewitht
her estoftheworld.Marketor
ient
ati
onandl iber
ali
zat
ionhascr eated
thesit
uationofal
lroundcompet i
ti
on.
2.Mor eDemandingCust omers:Incr
easedcompet iti
onhaswi denedthechoi
ceof
customersi
nrespectofgoodsandservices.Thus,t
hecust omershavebecomemore
demanding.Consequent
ly,manynew schemesar ebei ngevol
vedbycompaniesto
att
ractt
hecustomersinhi
ghlycust
omerorient
edmar kets.

3.Rapi dl
y Changing Technol
ogi
calEnv i
ronment:Rapi dl
ychangi ng technol
ogi
cal
envir
onmenthel psthef i
rmst oimprov
et hei
rgoodsandser vices,equipmentsand
methods in ordertof ace t
he competit
ion and sur
viv
ei nthe mar ket.Moreover
,
producersarenow usingwor l
dclasstechnology.Thi
sl eadstomor einvestmentin
ResearchandDev el
opment(R&D) ,I
nnovati
onProductDevelopmentetc.

4.Necessit
yforChange:Sincethemar
ketf or
ceshav
ebecomev
erydynamic,t
hefir
ms
havetocont i
nuousl
ychanget hei
ract
ivit
iestosurvi
veint
hemarket.Theyhavet o
modif
yt heirexi
sti
ng pol
i
ciesand operati
onsfrom ti
metoti
measpr oact
ivel
yas
possi
ble.

5.Needf orDev
elopi
ngHumanResour ce:Tocompetewi ththeforeignfi
rms,I
ndian
companiesmusthavehi
ghl
yskil
l
ed,tr
ainedandcompetenthumanr esour
ce.Ther
efore,
huge amountofmoneyi s now bei
ng spenton the tr
aini
ng and devel
opmentof
employees.

6.MarketOri
ent
ati
on:Todayt hemar kethasbecomeconsumeror i
ent
ed.Thus,t
he
fi
rmsmuststudythemarketsi
tuati
onf i
rstandthenpr
oducegoodsaccordi
ngtothe
demandofthecustomer
s.Accordi
ngly
,thef i
rmsnowplanproduct
iononthebasi
sof
marketr
esear
ch,
needandwantofcustomer s.

7.LossofBudget
ingSupporttot
hePublicSector:Ther educt
ioni
nthefinanci
alhelp
bytheCentr
alGover
nmenttothepubli
csectorenter
pri
seshasmadet heseenterpr
ises
real
i
sethatt
heyhavetogener
atet
heirownresourcestosurvi
veandgrow.

8.Thr eatf r
om Mul t
inati
onalCorporat
ions :Wit
hthe entr
yand consol
i
dat
ion of
multi
nat i
onalinIndi
a,Indi
ancompani esarefaci
ngtakeov
erthr
eat
sandar ehavi
ng
subordinateposi
ti
oninjoi
ntvent
ures.

9.Corporat
eVulnerabi
li
ty:Wit
hi ncreasedpresenceofMNCs,fi
nanci
alweaknessesof
Indi
an fi
rms have come t of orce.For ei
gn mar ket
s hav
e become aware ofi n
competenci
esofIndiancompani
es.

10.EnhancedFocusonExports:Thenewtr
adepoli
cyhashelpedIndi
anbusi
nessf
ir
ms
toboostexpor t
sandhenceear npreci
ousfor
eignexchanger equi
redfori
mport
ing
accor
dingtotheirr
equi
rement
s.
Ref
erence:

htt
ps:
//www.busi
nessmanagementi
deas.com/ pol
ici
es/
impacts-
of-
changes-
in-
gover
nment-
poli
cy-
on-busi
ness-
and-
industr
y-10-i
mpacts/2306