Q.

Identify the different forces, both domestic and foreign, which can influence the decision-
making process.
There are various forces in an economy that influence the decision making process. These can be both
domestic and foreign. Following are the different forces that can influence the decisions:

1. DOMESTIC:
(A) AGRICULTURAL SECTOR:
CLASSES OF FORCES SOURCES OF POWER
1 Large landlords Popularity
2 Occupaying large area
3

(B) MANUFACTURING SECTOR:

CLASSES OF FORCES SOURCES OF POWER
1 Big industry Industrial asset ownership.
2 Monopoly Numbers/trade unions.
3 No alternative
Influence price

(C) TRADING SECTOR:

CLASSES OF FORCES SOURCES OF POWER
1 Big trading farm Asset ownwership
2 Trade barrier

(D) OTHER IMPORTANT GROUPS:

CLASSES OF FORCES SOURCES OF POWER
1 Political influence Popularity/ power
2

2. FOREIGN FORCES:
CLASSES OF FORCES SOURCES OF POWER
1 IMF
2 World Bank
3 Asian Development Bank
Other loan-giving countries (USSR, Japan)
Examines why and how they influence decision making process. Give some examples from
history of Pakistan.

There are various forces in an economy that influence the decision making process in different
way. These can be both domestic and foreign. Like in domestic, large farms, political party,
trade union have a large influence in the decision making process.and in foreign forces include
IMF, World Bank and other loan giving countries. Govt need to take them in a pool while
making decision.
There are several reason that government need to take them in a pool while making decision,
like fereign forces i.e IMF and World Bank etc influence in the decision making the interest rate,
tax rate as they need to know how we pay back the loan, domestic factor also influense for
their own interest/Bbenefit like, in recent time when govt decrease petrolium price, we see
that most of the petrol pump become close, & then govt increase the price and, we have the
example of sugar and wheat shortage in country, in the end, the country like pakistan faced
many issues while making decision due to lack of resources and due to influence of large
monopoly organization and huge political influence in the country.