RECENT TRENDS

SECTOR b

• A sector is an area of the economy in which businesses share the same or related
business activity, product, or service. Sectors represent a large grouping of
companies with similar business activities, such as the extraction of natural
resources and agriculture.
• Sectors are used to categorize the economic activity of consumers and businesses into
groupings based on the type of business activity.

• Primary sector companies are directly engaged in activities utilizing natural resources, such
as mining and agriculture.

• Secondary sector companies produce goods derived from the products within the primary
sector and include manufacturing.

• Tertiary and quaternary sectors represent the services and knowledge-based economy and
include retail and information technology.

• In the financial markets, investment sectors are sub-sectors that aid in comparing the
financial performance of similar businesses.
Globalization
• Globalization is the word used to describe the growing interdependence of the world's
economies, cultures, and populations, brought about by cross-border trade in goods and
services, technology, and flows of investment, people, and information.

• Globalization is the spread of products, technology, information, and jobs across national
borders and cultures. In economic terms, it describes an interdependence of nations
around the globe fostered through free trade.
• Globalization is the spread of products, technology, information, and jobs across nations.

• Corporations in developed nations can gain a competitive edge through globalization.

• Developing countries also benefit through globalization as they tend to be more cost-
effective and therefore attract jobs.

• The benefits of globalization have been questioned as the positive effects are not
necessarily distributed equally.

• One clear result of globalization is that an economic downturn in one country can create
a domino effect through its trade partners.
• Liberalization or Liberalisation is a broad term that refers to the practice of making laws, systems,
or opinions less severe, usually in the sense of eliminating certain government regulations or
restrictions.

• Liberalization and its impact on business Liberalization in general refers to a relaxation of government
restrictions in the areas of social or economic policy. More commonly, the term liberalization refers to
economic liberalization.

• Aft er 1980, the Indian government has liberalized its industrial policy and trade policy, reduced restriction
on foreign investment and technology and initiated public sector reforms and capital market reforms.

• Th is liberalization policy has led to the growth of Indian business, improved its effi ciency and productivity
and new sectors were opened up. However, it also has some negative aspects such as increased
unemployment, increased employment in informal sector and small businesses facing the problem of
survival
Objectives of Liberalization Policy
• To increase competition amongst domestic industries.
• To encourage foreign trade with other countries with regulated imports and exports.
• Enhancement of foreign capital and technology.
• To expand global market frontiers of the country.
• To diminish the debt burden of the country.
Privatization
• Privatization and its impact on business Privatization refers to shift of production
of goods and services from the public sector to the private sector, and then shift of
activities or function from the state to the private sector. Th e positive aspect of
the privatization is explained in terms of improving the functioning of the public
sector units which were privatized.