IBE

ASSIGNMENT

Submitted By: Fazela Raeka Shaukat

Roll No.: MB020
 IBE ASSIGNMENT
ASSIGNMENT
NO. 1
“NEWS ANALYSIS”
 Amazon India today announced the launch
of Amazon Saheli, a new pioneering program
aimed at empowering and enabling women
entrepreneurs across the country to sell
their products on the Amazon.in
marketplace.

In collaboration with notable organisations that work to encourage women entrepreneurship, the
program is in line with Amazon India’s vision to transform the way India sells.

Currently, the partner organisations include SEWA (Self-Employed Women Association) and Impulse Social
Enterprise. Amazon Saheli, in collaboration with its partner organizations, will offer women entrepreneurs’
access to nationwide customers on the Amazon India marketplace, the most visited and transacted
marketplace in India.

Thousands of women entrepreneurs associated with these partner organisations will be able to offer their
products to Amazon.in customers through a dedicated storefront, ‘The Saheli Store’. The store will feature
unique products produced locally by these women entrepreneurs. Initially comprising handicrafts, apparel,
handbags and home décor items, the store will gradually scale up to on-board women entrepreneurs
selling in different product categories. Besides offering the registered women entrepreneurs an
unparalleled reach to customers, Amazon Saheli will help them gain world-class logistics and fulfilment
facilities to help their businesses soar. Women entrepreneurs under the program will be able to enjoy a
slew of benefits such as subsidized referral fees, free imaging & cataloguing during launch, account
management & post launch support and enhanced discoverability & differentiation of products through
specialized storefronts.

Mr. Gopal Pillai, Director & GM, Seller Services, Amazon India said, “As a part of our commitment to
transform how India buys and sells by enabling small entrepreneurs to scale up, we have now focused on
the challenges faced by Indian women entrepreneurs to gain visibility and access to resources. E-
commerce is an important enabler for small businesses offering tremendous opportunities to women
entrepreneurs to benefit from the digital economy. We are delighted to join hands with partner
organisations such as SEWA and Impulse for Social Cause that have done remarkable work to aid
marginalized women entrepreneurs and help them scale up for a multiplier impact. Through Amazon
Saheli we aim to bring a change in the lives of thousands of women entrepreneurs with the help of our
partners.”

Speaking on the initiative, Smt. Reema Nanavati who leads SEWA said, “We at SEWA believe in young
women’s’ entrepreneurship using e-commerce. With minimal cost, e-commerce gives you reach to newer
markets nationally and internationally! It builds economic security, brings dignity and self-respect to young
women entrepreneurs. SEWA is happy to partner with Amazon which share the same vision to not only
provide women entrepreneurs access to millions of new customers and become economically secured and
will generate employment opportunities for many more young women."

Hakhibrn Ahir, a postgraduate in Arts from a village in Santalpur, Gujarat – is a seller on Amazon under the
program. She is a teacher but also continues their family’s embroidery tradition and sells her embroideries
on Amazon as “Hansiba. Paliben used to collect waste from the streets in Ahmedabad and feed her family.
Today she is a seller on Amazon – selling stationery made from recycled waste paper through her co-
operative ‘Gitanjali. This is freedom from poverty, hunger – we call second freedom – life of dignity.” Smt
Nanavati added. 

Commenting on the launch of the program, Jay Carney, Senior Vice President – Global Corporate Affairs,
Amazon Inc. said, “Promoting entrepreneurship among women has become a key focus area for companies
everywhere – globally and in India. E-commerce and specifically the e-marketplace model is a great avenue
for women entrepreneurs to benefit from the fast-growing digital economy. We are very encouraged by
the creativity and drive we see among India’s women entrepreneurs and are excited to see how Saheli can
inspire their innovative spirit.”

Amazon Saheli will be conducting extensive training and skill development workshops to help women
entrepreneurs understand nuances related to online selling and, develop skills & capabilities necessary to
grow their business on Amazon.in. The training workshops will comprise of sessions on listing of products,
imaging & cataloguing, packaging & shipping, inventory & account management and customer service to
name a few. The workshops will be free of cost and will offer several exclusive benefits including assisted
onboarding and mentorship programs. The program will subsequently be expanded to empower women
through other programs offered by Amazon India like ATES (Amazon Trained E-commerce Specialists), SPN
(Service Provider Network), IHS (I Have Space) and Udaan.
Amazon India conducted a pilot for Amazon Saheli in Nagaland earlier this year in association with NSDC
and Government of Nagaland. Around 50 independent women entrepreneurs attended the workshop for a
period of 2 days. All the participants were trained on different processes to take their products online.

Amazon India, over the course of one year, partnered with various government bodies like DC Handloom,
Ministry of Textiles, National Skill Development Corporation (NSDC), Gujarat Tribal Development
Department, Government of Telangana and The Tribal Cooperative Marketing Development of India
(TRIFED) to supplement the efforts of the government to uplift artisans & SMEs across the country. The
company has created specialized training modules, conducted workshops with on-ground staff and shared
learning resources to help them start & grow their businesses online.

What is Amazon Saheli Program for Women Entrepreneurs?

The online retail company Amazon launched a new programme “Amazon Saheli” in November, 2017 which
is aimed at empowering and enabling Indian women entrepreneurs to sell their products across the
country. Promotion of entrepreneurship amongst women has become the key motive of the programme.
For this programme, Amazon India has collaborated with organizations that work towards the support and
upliftment of women entrepreneurship. The women entrepreneurs who are associated with this
programme can sell their products to Amazon. in through this store.

What is Amazon Saheli store and what are Amazon Saheli products?
Keeping in mind the challenges faced by the Indian women entrepreneurs, Amazon has come up with a
dedicated store named, “the Saheli Store” on Amazon.in. It is a dedicated storefront on Amazon.in, which
facilitates Indian women to showcase their talent, display and sell their entrepreneurs’ products to millions
of buyers across the country. 
Currently, few items like handicrafts, apparels, home décor items, handbags are included in the Saheli
store but gradually, Amazon expects to increase the categories of products.

Amazon Saheli Benefits

Along with getting a special place on Amazon.in, Amazon also has special benefits in the store to motivate
the sellers to join Amazon and sell their products. Here are the advantages of being a Saheli seller.

1. Subsidized Referral Fee

To promote women-run businesses, Amazon has reduced its Referral or Sell on Amazon (SOA) fee for
sellers who are affiliated with our partners (government body, NGO, or Non-profit organization partnered
with Amazon Saheli). The fee is capped at 12% or less for one year, depending upon the product category.
Our partners work for women’s financial freedom and a reduction in fee will encourage more women to
start their business on Amazon, giving a chance to make their selling journey a success.
2. Personalized Training
Amazon Saheli sellers are provided with launch support such as training on how to sell on amazon. These
training sessions are conducted offline as well online and are meant to help sellers on how to start selling
on Amazon.

3. Account Management Support

An account manager will guide the newly launched sellers through the marketplace and help them learn all
about selling on Amazon. This support is provided for the initial 30 days of the business so the seller can
get acquainted with the Seller Central platform.

4. Imaging & Cataloguing

Amazon helps the sellers in getting their product page up and running for the initial phase. Providing help
with product information, including specifications, high-quality images, and videos increase product
credibility. Amazon helps get professional product photoshoot and cataloguing to the new sellers, so that
the product pages are up and live at the earliest and as per Amazon standards.

5. Increased Customer Visibility

Amazon Saheli gives a special place to women-created products on Amazon. This helps in getting more
customer attention and increases the chances to get more sales. The Saheli store represents all the
product categories from women sellers, making it easier for buyers to select from the range of products.
Sellers can also leverage various marketing strategies like Sponsored Products, Sponsored Brand,
Sponsored Store to try and bring more visibility to their products.
6. Marketing Support
Amazon has various marketing channels to promote handmade and Made in India products and encourage
people to buy more of these products. Amazon also promotes Saheli products on various platforms like
Amazon.in home page, social media, digital ads, PR, and through influencer marketing.

Amazon has several initiatives like Small business day and Smbhv dedicated to promoting local handmade
products and small and medium businesses. Stand for Handmade initiative launched in June 2020, a 10
weeks high decibel campaign meant to support sellers with a jumpstart post lockdown has seen sellers
grow their business by leaps and bounds. Sellers got a complete waiver on Sell on Amazon fee for the 10
week duration. We collaborated with Vidya Balan and Amazon Prime to spread more awareness.

Also, some other benefits are:

 The foremost benefit is that if you are Saheli member, you get a separate storefront to sell your
items. Amazon is India’s biggest online market place and one get unparalleled reach to millions of
Amazon customers. The company opens up its vast market to these entrepreneurs. They have huge
customer base to touch.        
 The store will help them to access the logistics and fulfilment facilities as well.
 The company is providing free on-line and off-line training to its Saheli members as to how to make
product portfolio online and execute online selling processes.
 You can also receive reduced referral fee to 12% for one year if your category referral fee is more
than 12%.
About SEWA (Self Employed Women’s Association)

SEWA is a trade union registered in 1972. It is an organisation of poor, self-employed women workers.
These are women who earn a living through their own labour or small businesses. They do not obtain
regular salaried employment with welfare benefits like workers in the organised sector. They are the
unprotected labour force of our country. Constituting 93% of the labour force, these are workers of the
unorganised sector. Of the female labour force in India, more than 94% are in the unorganised sector.
However, their work is not counted and hence remains invisible. In fact, women workers themselves
remain uncounted, undercounted, and invisible.

SEWA's main goals are to organise women workers for full employment. Full employment means
employment whereby workers obtain work security, income security, food security and social security (at

least health care, childcare and shelter). SEWA organises women to ensure that every family obtains full
employment. By self-reliance we mean that women should be autonomous and self-reliant, individually
and collectively, both economically and in terms of their decision-making ability.

About ISE

Impulse Social Enterprises (ISE), as the name suggests, is a social enterprise of like-minded partners, that
helps provide sustainable livelihood for tribes in the North East of India and its neighboring countries, by
leveraging their traditional skills and crafts.

We’re starting with the marketing and sale of textile based products made by local tribes of North East
India, but have plans to expand local income opportunities through other traditional crafts, as well as
elements of eco-tourism that include transport and hospitality.

This also opens up direct in indirect opportunities for CSR and investment in the area, for national and
international business.
Our focus however, is trade, not aid.

ISE works in partnership with various tribes, NGOs, governments, and private sector companies to achieve
our goal of sustainable livelihood for all.

MODEL FOLLOWED BY IMPUSE

 IBE
ASSIGNMENT
NO.2
“QUESTION AND ANSWERS”
Q1. What is Foreign Trade (Development and Regulation) Act? How is it related with EXIM
policy of India? Write on the latest aspects of these two.
Policy of India is guided by the Export Import in known as in short EXIM Policy of the Indian Government
and is regulated by the Foreign Trade Development and Regulation Act, 1992.
DGFT (Directorate General of Foreign Trade) is the main governing body in matters related to Exim Policy.
The main objective of the Foreign Trade (Development and Regulation) Act is to provide the development
and regulation of foreign trade by facilitating imports into, and augmenting exports from India.
The major aim of the current foreign trade policy introduced in the country is nothing but the development
of export potential, improvement of export performance, encouragement of foreign trade as well as the
creation of favourable balance of the position of the payment. This policy, also known as the Export Import
Policy (EXIM Policy) is updated every year on the last day of March and all the new improvements,
modifications as well as schemes so updated become effective from the first day of April each year.

Q2. Write a detailed note on Marketing assistance; EPZs, EOUs, TPs and SEZs
Marketing Assistance Scheme
Marketing, a strategic tool for business development, is critical for the growth and survival of micro, small
& medium enterprises. Marketing is the most important factor for the success of any enterprise. MSME
sector does not have these resources at their command and thus needs institutional support for providing
these inputs in the area of marketing.

EPZs (Export processing zone)

An export processing zone, or EPZ, is an area set up to enhance commercial and industrial exports by
encouraging economic growth through investment from foreign entities. Incentives such as tax exemptions
and a barrier-free environment are the main attractions of an EPZ.  
The main goals and benefits of an EPZ are growth from foreign exchange earnings through non-traditional
exports, creation of jobs to assist in income generation and develop labour skillsets, the attraction of direct
foreign investment, and fostering of transfer of technology.
EOUs (Export Oriented Units)
The full form of EOU is Export Oriented Units. Introduced in 1981, the scheme aims to increase exports
from India, to thereby increase foreign exchange earnings and create employment. This scheme also
complements other schemes such as Free Trade Zone (FTZ) and Export Processing Zone EPZ in India.
SEZs (Special Economic Zone)
It is a geographically distributed area or zones where the economic laws are more liberal as compared to
other parts of the country. SEZs are proposed to be specially delineated duty-free enclaves for the purpose
of trade, operations, duty and tariffs. Subject: IBE 15 SEZs are self-contained and integrated having their
own infrastructure and support services. The area under 'SEZ' covers a broad range of zone types, including
Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Trade Zones (FTZ), Free Ports,
Urban Enterprise Zones and others.
Q3. Evaluate the export and trading Houses’ effectiveness in India
Some ways trading and Export houses are more effective are as follows:

1. They can avail themselves of the various economies of scale in transportation, warehousing and
other areas related to physical distribution,

2. They can avail themselves of export finance available at confessional rates.

3. They are in a position to employ qualified and specialized staff to look after the complicated work
relating to customs, legal problems, procedures and documentation.

4. They can bargain with large adding companies in foreign countries on an equal footing.

5. They can achieve economies in export promotion by using the most effective advertising and
publicity media as also by participating in many trade fairs and exhibitions.

6. They can very often profit by taking a position on exchange rates.

7. They are able to absorb many of the risks inherent in International trade because of the wide range
of products handled by them.

Q4. What is Globalization? Describe its Dimensions in depth along with its advantages
and disadvantages.

Globalization is essentially the means by which individuals, governments, companies, and countries

interact with and affect one another, with the goal of helping to build strong alliances that mutually benefit
one another. Globalization is accomplished through the use of technology, as well as through trades and
investments made internationally. The process can and does affect how different countries and regions
develop and progress economically, how political systems are shaped, and how the environment and
cultures of societies around the world are impacted.

The term globalisation has four parameters:

(a) Permitting free flow of goods by removing or reducing trade barriers between the countries,

(b) Creating environment for flow of capital between the countries,

(c) Allowing free flow in technology transfer and

(d) Creating environment for free movement of labour between the countries of the world. Thus, taking
the entire world as global village, all the four components are equally important for attaining a smooth
path for globalisation.

 The Pros of Globalization

A number of positive aspects of globalization include:

 Building up the economic and social structures of struggling countries and economies through free
trade
 Creation of world power and less and less compartmentalized power sectors
 Learning about and sharing of new and interesting cultures with one another
The Cons of Globalization

Though it comes with perks, there are a number of cons to globalization that analysts and critics have
noted for years. They include:

 The oppression of weaker and poorer economies by those that are more robust; “the rich get
richer, the poor get poorer”
 The danger of job loss, with certain industries and sectors sending jobs to countries where workers
are willing to do the same amount of work or more for smaller wages
 Multinational corporations often get away with poor, unsafe, unethical, or exploitative working
conditions due to variations in laws and regulations from one country to another

Q5. What are the various stages of Globalization?

Typically, the process of globalization of companies evolves through distinct stages.

1. In the first stage of globalization, companies normally tend to focus on their domestic markets.
They develop and strengthen their capabilities in some core areas.
2. In the second stage of globalization, companies begin to look at overseas markets more seriously
but the orientation remains predominantly domestic. The various options a company has in this
stage are exports, setting up warehouses abroad and establishing assembly lines in major markets.
The company gets a better understanding of overseas markets at low risk, but without committing
large amounts of resources.
3. In the third stage of globalization, the commitment to overseas markets increases. The company
begins to take into account the differences across various markets to customize its products
suitably. Different strategies are formed for different markets to maximize customer
responsiveness. The company may set up overseas R&D centres and full-fledged country or region-
specific manufacturing facilities. This phase can be referred to as the multinational or multi-
domestic phase. The different subsidiaries largely remain independent of each other and there is
little coordination among the different units in the system.
4. In the final stage of globalization, the transnational corporation emerges. Here, the company takes
into account both similarities and differences across different markets. Some activities are
standardized across the globe while others are customized to suit the needs of individual markets.
The firm attempts to combine global efficiencies, local responsiveness and sharing of knowledge
across different subsidiaries.

Q6. What are the various foreign market Entry strategies?

Exporting

Exporting is the direct sale of goods and / or services in another country. It is possibly the best-
known method of entering a foreign market, as well as the lowest risk. It may also be cost-effective
as you will not need to invest in production facilities in your chosen country – all goods are still
produced in your home country then sent to foreign countries for sale. However, rising
transportation costs are likely to increase the cost of exporting in the near future.

The majority of costs involved with exporting come from marketing expenses. Usually, you will
need the involvement of four parties: your business, an importer, a transport provider and the
government of the country of which you wish to export to.

Licensing
 Licensing allows another company in your target country to use your property. The property in
question is normally intangible – for example, trademarks, production techniques or patents. The
licensee will pay a fee in order to be allowed the right to use the property.

Licensing requires very little investment and can provide a high return on investment. The licensee
will also take care of any manufacturing and marketing costs in the foreign market.

Franchising

Franchising is somewhat similar to licensing in that intellectual property rights are sold to a
franchisee. However, the rules for how the franchisee carries out business are usually very strict –
for example, any processes must be followed, or specific components must be used in
manufacturing.

Joint venture

A joint venture consists of two companies establishing a jointly-owned business. One of the owners
will be a local business (local to the foreign market). The two companies would then provide the
new business with a management team and share control of the joint venture.

There are several benefits to this type of venture. It allows you the benefit of local knowledge of a
foreign market and allows you to share costs. However, there are some issues – there can be
problems with deciding who invests what and how to split profits.

Foreign direct investment

Foreign direct investment (FDI) is when you directly invest in facilities in a foreign market. It
requires a lot of capital to cover costs such as premises, technology and staff. FDI can be done
either by establishing a new venture or acquiring an existing company.

Q7. Write on how Indian businesses have Performed in the area of Globalization?

 India gained highly from the LPG model as its GDP increased to 9.7% in 2007-2008. In respect of
market capitalization, India ranks fourth in the world. But even after globalization, condition of
agriculture has not improved. The share of agriculture in the GDP is only 17%.
 The number of landless families has increased and farmers are still committing suicide. But seeing
the positive effects of globalization, it can be said that very soon India will overcome these hurdles
too and march strongly on its path of development.
 The lesson of recent experience is that a country must carefully choose a combination of policies
that best enables it to take the opportunity - while avoiding the pitfalls. For over a century the
United States has been the largest economy in the world but major developments have taken place
in the world Economy since then, leading to the shift of focus from the US and the rich countries of
Europe to the two Asian giants- India and China.
 Economics experts and various studies conducted across the globe envisage India and China to rule
the world in the 21st century. India, which is now the fourth largest economy in terms of
purchasing power parity, may overtake Japan and become third major economic power within 10
years. To conclude we can say that the modernization that we see around us in our daily life is a
contribution of Globalization.
  Globalization has both positive and as well as negative impacts on various sectors of Indian
Economy. So Globalization has taken us a long way from 1991 which has resultant in the
advancement our country.

Q8. What are various models of MNCs? What are the merits and demerits of MNCs?
The following are the different models of multinational corporations:
1. Centralized: In the centralized model, companies put up an executive headquarters in their home
country and then build various manufacturing plants and production facilities in other countries.
2. Regional: The regionalized model states that a company keeps its headquarters in one country that
supervises a collection of offices that are located in other countries
3. Multinational: In the multinational model, a parent company operates in the home country and puts up
subsidiaries in different countries
MERITS OF MNC
1. Efficiency
In terms of efficiency, multinational companies are able to reach their target markets more easily because
they manufacture in the countries where the target markets are. Also, they can easily access raw materials
and cheaper labour costs.
2. Development
In terms of development, multinational corporations pay better than domestic companies, making them
more attractive to the local labour force. They are usually favoured by the local government because of the
substantial amount of local taxes they pay, which helps boost the country’s economy.
3. Employment
In terms of employment, multinational corporations hire local workers who know the culture of their place
and are thus able to give helpful insider feedback on what the locals want.
As multinational corporations employ both locals and foreign workers, they are able to come up with
products that are more creative and innovative.
DEMERITS OF MNC
1. Profit Motive: MNC’s have only one objective – profit and only profit. All the actions of MNC’s are
guided by single minded motive that is profit. They lack total respect to the growth and the welfare of the
host nation. At times they are so obsessed with profit motive that it goes against the interest of the host
nation.
2. Creation of Monopoly: MNC’s are so strong and so large that it does not allow the domestic industry to
grow and come up. They even buy out the smaller firms in domestic markets, thereby creating monopoly in
host nation. They always have advantage of vast resources at their disposal, i.e. capital, technology which
can’t be matched by smaller firm in the domestic markets.
3. Different ideology: The ideology of the host nation and the MNC may be quite different. MNC’s come
with profit motive. Government has growth and protection of consumers in mind. There is most often than
clash of interest.

Q9. Write on code of conducts that various MNCs follow in India?

Major Code of Conduct of various firm include: (I) Stakeholder principles: Stakeholder principles are
general requirements for company and employee conduct: they govern the relationship between company
and stakeholders (II) Corporate values: Apart from stakeholder principles which pertain specifically to
stakeholder relationships, organizations also express their core values in a code. Core values refer to those
qualities a company deems desirable and which should ground all business conduct and outcomes. (III)
Internal employee conduct: Business codes can also clarify what is expected of employees in their
engagement with one another and their treatment of organizational assets.

Q10. Write a detailed note on Niti Ayog?

The Planning Commission of India supervised the five-year plan for the economic development of the
country. However, in 2014, the 65-year-old Planning Commission was dissolved and a think tank – NITI
Aayog (National Institution for Transforming India) took its place. In this article, we will look at the aims
and objectives of the NITI Aayog

 To evolve a shared vision of national development priorities, sectors and strategies with the active
involvement of States in the light of national objectives.
 To foster cooperative federalism through structured support initiatives and mechanisms with the
States on a continuous basis, recognizing that strong States make a strong nation.
 To develop mechanisms to formulate credible plans at the village level and aggregate these
progressively at higher levels of government.
 To ensure that the interests of national security are incorporated in economic strategy and policy.

Q11. Write a note on WTO and its history. What is its role in the current global Financial
crisis?
The World Trade Organization (WTO) is the only global international organization dealing with the rules of
trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the
world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and
services, exporters, and importers conduct their business.
The WTO precursor General Agreement on Tariffs and Trade (GATT), was established by a multilateral
treaty of 23 countries in 1947 after World War II in the wake of other new multilateral institutions
dedicated to international economic cooperation—such as the World Bank (founded 1944) and
the International Monetary Fund (founded 1944 or 1945). A comparable international institution for trade,
named the International Trade.
WTO globally looks at following objective to control financial crisis: When any natural or artificial calamities
affect the world there is chain reaction that every nation takes for reducing the impact on its economy
such measure creates a worse situation in whole thus impacting a global economy to worsen.
WTO can play a role of intermediator where it encourages its Members to be confident that the measures
taken have not, in fact, lead to any increase in protectionist measures.
WTO might put some pressure on the persistent trade surplus countries to import more.
Q12. How are 2008 Sub-Prime Crisis and Current Economic Crisis different?
Recession comparisons
The shock to the world economy in 2020 is quite different, since the lockdowns have severely hampered
everything from manufacturing to services. In 2007-09, the problem was a banking crisis as a result of too
much bad debt, and there was no equivalent crisis on what economists call the supply side of the
economy.
Nonetheless, the COVID-19 pandemic is having knock-on effects that are showing some similarities with
the previous crisis. The credit markets have frozen and corporate bonds have plunged in value: the gap or
spread between corporate bond yields and those of the benchmark ten-year US government bond has now
widened more than during 2007-09.
 Process:
The current exogeneous sanitary shock has affected, first, the real sector and the supply of production,
then the demand side. In 2007-08 the endogenous financial shock affected the demand side first, and then
morphed into the Great Recession of 2009.
The COVID-19 crisis has spread quickly all over the world given highly integrated supply chains and the
physical contagion of the virus. This supply-shock then has affected the financial sector and the demand
side (tourism, trade, etc.). As a producer’s constraint restrains the consumer, a demand shock emerges
everywhere, worsened by psychological contagion.

Q 13. What is Quantitative Easing? What is Helicopter Money? Are they likely to help
India in dealing with the economic challenges that COVID19 crisis will lead to?
Quantitative easing (QE) is when a central bank buys long-term securities from its member banks. By
buying up these securities, the central bank adds new money to the economy; as a result of the influx,
interest rates fall, making it easier for people to borrow.
Helicopter money is a money transfer from the central bank to the public (via the government), with the
aim of boosting economic output and inflation. The theory behind helicopter money is that money handed
to the public (consumers) would increase their disposable income, resulting in increased consumer
spending that would ultimately boost economic output.
Yes, Helicopter Money means extension of non-repayable money transfer from the central bank to the
state and central governments, to infuse liquidity in the system. The policy aims at putting more money
into the pockets of people to nudge them to spend more money and in turn pick-up economic activity in
the country.  The direct impact of Helicopter Money is rise in disposable incomes of the people, increase in
money supply with an intention to boost demand and inflation in the economy.

Q14. What steps have been taken by RBI to easy the liquidity problem in the money
markets? Evaluate them.

1) Loan Moratorium – In a massive relief for the middle class, the RBI Governor also announced that
lenders could give a moratorium of 3 months on term loans, outstanding as on 1 March, 2020. This is
applicable to All Commercial Banks including Regional, Rural, Small Finance, Co-Op Bank, All India Financial
Institutions and NBFCs including Housing Finance and Microfinance.
2) MSF – Marginal Standing Facility (MSF) has also been increased to 3% of SLR, available till June 30, 2020.
“This measure should provide comfort to the banking system by allowing it to avail an additional ` 1,37,000
crore of liquidity under the LAF window in times of stress at the reduced” said the RBI.

3) Fresh Liquidity – The impact of all the announcements today shall inject almost 3.2% of GDP, the
Governor said in his brief today. The RBI also added that since February 2020 it had injected Rs 2.8 lakh
crore of liquidity, equivalent to 1.4 percent of GDP.

Q15. Write a note on FDI in India.

Foreign direct investment (FDI) is when a company takes controlling ownership in a business entity in
another country. With FDI, foreign companies are directly involved with day-to-day operations in the other
country. This means they aren’t just bringing money with them, but also knowledge, skills and technology.
 
Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign
business assets, including establishing ownership or controlling interest in a foreign company.  
FDI in India
 
FDI is an important monetary source for India's economic development. Economic liberalisation started in
India in the wake of the 1991 crisis and since then, FDI has steadily increased in the country. India, today is
a part of top 100-club on Ease of Doing Business (EoDB) and globally ranks number 1 in the greenfield FDI
ranking.
 
Routes through which India gets FDI
 
Automatic route: The non-resident or Indian company does not require prior nod of the RBI or
government of India for FDI.
 
Govt route: The government's approval is mandatory. The company will have to file an application through
Foreign Investment Facilitation Portal, which facilitates single-window clearance. The application is then
forwarded to the respective ministry, which will approve/reject the application in consultation with the
Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce. DPIIT will issue
the Standard Operating Procedure (SOP) for processing of applications under the existing FDI policy.

 
 IBE ASSIGNMENT
ASSIGNMENT
NO. 4
“CASE STUDY ANALYSIS”
Question 1: Identify at least five opportunities and five threats for domestic and foreign
companies from this review case of the retailing industries in India.
Answer:
Threats:
 Lack of technology adoption.
 Market is huge that leads to heavy competition
 Inefficient supply chain management.
 Lack of infrastructure.
 Understanding customer.
 Expensive operation.
 Organized retailers are often resisted to maintain support from unorganized vendors regulatory
issues.
 Direct foreign investment not permitted.
 Real estate laws for setting up infrastructure restructuring of tax weak supply system.
 Difficulty in covering such a large area traditional, fragmented distribution & retail.

Opportunities:
 Growing size of consuming class international market awareness
 More exposure to international markets through tv & internet growing market
 Increasing number of youths & increment in income level advancing technology
 Opening for human resource that will lead to decrease in unemployment,
 Change in the behaviour of the Indian consumer that helped in modern shopping revolution.
 Growth in upcoming years in retail industry seems to be positive.
 Huge benefits for customers.
 Creation and upliftment in Technological Environment.
 Development such as favourable real estate and infrastructural development etc.
 Availability of credit and bank loan.
Q2. Prepare an ETOP for a company interested in entering the retail industry in India
Answer: ETOP factors are as follows:
Economic -
9% Increase in population leading to growing size of the consuming class which is considered as an
impressive growth rate. Increase in per capita income leading to increase in purchasing power.
Technical –
The progression of IT is now aiding the growth of retail sector also.
IT is now providing support to quick information processing, decision making, reduction in processing cost,
real time monitoring, security of transactions etc.
Political –
Foreign investment up to 100% is still not permitted. Real estate laws at the state level not yet clear on the
issue of allowing large commercial stores.
Tax structure for the retailing industry still needs to be restructured.
Supplier –
The biggest constraint to the growth of retail industry in India. –
Due to the vast geographical size of the country, presence of traditional, fragmented distribution &
retailing networks and erratic logistics system and poor SCM system, reaching the customers cost-
effectively is a big problem in Indi