Business Environment

Business Environment
	Contents
	Foreword
	Preface to the third Edition
	Preface
	About the Author
	Chapter 1 Business Environment
		Introduction
		Meaning and Definition
		Salient Features
		Why a Company Need to be an International One? 4
		Importance of the Study
		Environmental Factors
		Business Environment and Strategic Management: A Glocal Approach
		Market Opportunities
		Distribution of Household by Income between 2011 and 2012 15
		India’s Political Scenario
		Recent Economic and Financial Environment
		Annual Growth Rate of Gdp in India
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 2 Planning in India
		The Emergence of Planning
		The Planning Commission
		The National Development Council
		Objectives of Planning in India
		Five-Year Plans
		Distribution of Public Sector Outlay of Each Plan
		Five-Year Plans—Achievements and Failures
		Twelfth Five-Year Plan (2012–17) 49
		Liberalization and Planning
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 3 Industrial Policy
		Historical Background
		Government’s Role
		Meaning and Objectives of Industrial Policies
		Industrial Policies
		Evaluation of the New Industrial Policy
		New Trade Policy of 1991 104
		The New Small-Scale Sector Policy of 1991 105
		Recent Policies for Micro and Small Enterprises (MSE) Sector
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 4 Industrial Licensing
		Industrial Licensing in India
		Objectives of Industrial Licensing
		Industrial Licensing Act of 1951 117
		Industrial Licensing Policy
		Policy Decisions
		Recent Industrial Licensing Policy
		Annexure I
		Annexure II
		Annexure III
		Summary
		Key Words
		Questions
		References
	Chapter 5 India’s Monetary and Fiscal Policy
		I. Monetary Policy of India
		Concept and Meaning of Monetary Policy
		Objectives of the Monetary Policy
		Differences Between Monetary Policy and Fiscal Policy
		Meaning of Monetary Policy Terms
		Impact of the Monetary Policy
		Measures to Regulate Money Supply
		The Monetary Policy and IMF
		Rbi’s Monetary Policy Measures
		Rbi’s Monetary Policy, 2012–13 151
		II. Fiscal Policy of India
		Concept and Meaning of Fiscal Policy
		Objectives of the Fiscal Policy
		Fiscal Policy and Economic Development
		Techniques of Fiscal Policy
		Merits of Fiscal Policy of India
		The Shortcomings of the Fiscal Policy of India
		Suggestions for Necessary Reforms in Fiscal Policy
		Fiscal Policy Statement, 2012–13
		Fiscal Policy—An Assessment
		Conclusions
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 6 Economic Trends
		I. The Indian Financial Systems
		Indian Money Market
		Indian Capital Market
		Call Money Market
		Bill Market
		Financial System
		Structure of the Financial System
		Functions of the Indian Financial System: Promotion of Capital Formation
		II. The Price Policy
		Price Movement Since Independence
		Objectives of Price Policy
		Prices of Industrial Products
		Control of Expenditure
		Key Words
		Questions
		References
	Chapter 7 Stock Exchanges in India
		Concept and Meaning of Stock Exchange
		Functions of Stock Exchange
		List of Stock Exchanges in India
		Types of Financial Markets
		Participants in the Securities Market
		Listing of Security at Regulatory Stock Exchange
		Depository Services
		Dematerialization
		Products Available in the Secondary Market
		Sebi and its Role in the Secondary Market
		Powers of Security Exchange Board of India
		Regulatory Requirements Specified by Sebi for Corporate Debt Securities
		Broker and Sub-Broker in the Secondary Market
		Sebi Risk Management System
		Investor Protection Fund (Ipf )/Customer Protection Fund (Cpf ) at Stock Exchanges
		Foreign Institutional Investors (FIIs) 205
		Growth of Stock Market in India
		Key Words
		Questions
		References
	Chapter 8 National Income
		Meaning and Definition of National Income
		Concepts of National Income
		National Income Estimates in India
		Methodology of National Income Estimation in India
		Causes for the Slow Growth of National Income in India
		Suggestions to Raise the Level and Growth Rate of National Income in India
		Major Features of National Income in India
		Difficulties or Limitations in the Estimation of National Income in India
		Key Words
		Questions
		References
	Chapter 9 Industrialisation and Economic Development
		Concept and Meaning of Industrialisation
		The Pattern of Industrialisation
		Relative Roles of Public and Private Sectors
		Inadequacies of the Programme of Industrialisation
		Role of Industries in the Economic Development
		Industries During the Plan Period
		Recent Industrial Growth
		Micro and Small Enterprises (MSEs)
		Challenges and Outlook
		Key Words
		Questions
		References
	Chapter 10 Foreign Trade Policy and Balance of Payments
		Foreign Trade Policy and Balance of Payments
		Main Features of India’s Trade Policy
		Phases of India’s Trade Policy
		India’s Foreign Trade Policy, 1991
		Major Trade Reforms
		Highlights of Foreign Trade Policy 2009–14 Annual Supplement 2013–14
		Assessment of the New Trade Policy
		Balance of Payments
		Current Account Deficit
		Capital Account
		Other Non-debt Flows
		Disequilibrium of Bop
		Key Words
		Questions
		References
	Chapter 11 Poverty in India
		Concept, Meaning, and Definition of Poverty
		People Living under Poverty Line
		Causes of Poverty in India
		Historical Trends in Poverty Statistics
		Poverty and Inclusive Growth
		Factors Responsible for Poverty
		Measures to Reduce Poverty
		Poverty Alleviation Programmes
		Poverty Alleviation Through Micro-credit
		Outlook for Poverty Alleviation
		Controversy Over the Extent of Poverty Reduction
		McKinsey Global Institute (MGI) Report on Poverty in India
		Four Critical Elements are Key to the Path of Inclusive Reforms
		Case
		Key Words
		Questions
		References
	Chapter 12 Unemployment in India
		Concept, Meaning, and Types of Unemployment
		Nature of Unemployment in India
		Magnitude of Unemployment
		Factors Responsible for Unemployment
		Steps to Reduce Unemployment
		Government Policy Measures to Reduce Unemployment
		Overview of Unemployment and Underemployment
		McKinsey Report
		Case
		Key Words
		Questions
		References
	Chapter 13 Inflation
		Meaning and Definition of Inflation
		Features of Inflationary Economy
		Measures of Inflation
		Inflation and Developing Economies
		Demand-Pull vs Cost-Push Inflation
		Causes of Inflation
		Effects of Inflation
		Global Inflation and India
		Case
		Key Words
		Questions
		References
	Chapter 14 Human Development
		Concept of Human Development
		Meaning and Importance of Human Resource
		How to Attain Human Development
		Human Development and Gender Situation
		Growth of Human Development
		Human Development Report (2007–08)
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 15 Rural Development
		Concept, Meaning, and Definition of Rural Development
		Integrated Rural Development
		Important Features of Rural Economy and Rural Society
		Scope of Rural Development
		Interdependence Between Rural and Urban Sectors
		Strategies for Rural Development
		Rural Water Supply and Sanitation
		Women and Child Development
		Challenges and Outlook
		Rural Development: A Critical Analysis
		McKinsey Report
		Key Words
		Questions
		References
	Chapter 16 Problems of Growth
		Parallel Economy
		Regional Imbalances
		Social Injustice
		Case
		Key Words
		Questions
		References
	Chapter 17 Direct and Indirect Taxes
		Introduction
		Governing Authority
		Direct Tax
		Income Tax
		Wealth Tax
		Corporation Tax: India and the World
		Indirect Tax
		Income Exempted Under Section 10 442
		Assessee [Section 2(7)]
		Total Income
		Excise Duties
		Customs Tariff
		Central Sales Tax (Cst) 470
		Modified Value Added Tax (Modvat ) 472
		Central Value Added Tax
		Value Added Tax (VAT) 480
		Service Tax
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 18 MRTP, FERA, and FEMA Act
		Monopolies and Restrictive Trade Practices Act (Mrtp ), 1969
		Foreign Exchange Regulation Act (Fera ), 1973
		Foreign Exchange Management Act (Fema ), 1999
		New Competition Policy
		Case
		Key Words
		Questions
		References
	Chapter 19 Business Ethics
		Ethics and Values
		Relevance of Ethics in Business
		Benefits of Ethical Business
		Importance of Business Ethics
		Values in Business
		Inculcating Values in Management
		Categories of Business Values
		Need for Ethics in Global Change
		Managing Ethics
		Impact of Globalisation on Business Ethics
		Business Ethics as Competitive Advantage
		Business Ethics in India
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 20 Corporate Governance
		Definition
		The Need and Importance of Corporate Governance
		Problems of Corporate Governance
		Best Practices in Corporate Governance: An Indian and International Position Review
		The Board—Key to Good Corporate Governance
		Disclosure and Transparency: Partners of Good Governance
		Executive and Non-executive Directors
		Brief Review of Overseas Development on Governance Issues
		The Search for a New Approach to Corporate Governance
		Code of Conduct for Corporate Governance
		Measures to Improve Corporate Conduct
		Corporate Governance and India
		Challenges Before Managers
		Corporate Governance and Some Indian Organisations
		Regulatory Framework of Corporate Governance in India
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 21 Social Responsibility of Business
		Origin and Growth of Concept
		Meaning and Definition
		Definition Through Various Dimensions
		The Need for Social Responsibility of Business
		Social Responsibilities of Business Towards Different Groups
		Barriers to Social Responsibility
		Corporate Accountability vis-à-vis Social Responsibility
		Challenges for Social Responsibility of Business
		Emerging Perspectives for Corporate Social Responsibility
		Social Responsibility of Business in India
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 22 Liberalization
		Background
		Policy Changes
		Economic Liberalizations
		Meaning of Liberalization
		The Path of Liberalization
		Reform Achievements
		Industrial Growth
		Liberalization—An Assessment
		Liberalization and Growth of Indian Economy
		Issues and Challenges
		Case
		Key Words
		Questions
		References
	Chapter 23 Privatization and Disinvestment of PSUs
		Public Sector Enterprises (PSEs)—The Necessity
		A Decade of Performance
		Concept, Meaning, and Objectives of Privatization
		Disinvestment Strategies
		The Board for Reconstruction of Public Sector Enterprises (BRPSE) 624
		The New Disinvestment Policy and Programme
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 24 Globalization
		Background
		Views of Scholars on Globalization
		Studies on Globalization
		Efforts of Anglo-Americans
		Salient Aspects of Globalization
		Role of Transnational Corporations (TNCs)
		Popular and Successful Transnational Corporations (TNCs) 636651
		Concept and Meaning
		Definition
		Features
		Globalization is Inevitable
		Ten Rules of Global Reforms
		India and Globalization
		Government’s Measures Towards Globalization
		Globalization and its Impact on the Indian Industry
		Positive Effects of Globalization
		Negative Effects of Globalization
		Pro-globalization
		Anti-globalization
		Globalization—An Assessment
		A Critical Appraisal of Globalization
		Threats to Globalization
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 25 Foreign Investment
		Meaning
		Need for Foreign Investment
		Adverse Implications of Foreign Investment
		Determinants of Foreign Investment
		Government Policies
		Liberalization and Changing Sectoral Composition of FDI
		Liberalization and Changing Sources of FDI in India
		Impact of FDI Inflows: Some Issues
		Rising Importance of FDI in Indian Economy
		R&D, Local Technological Capability, and Diffusion
		FDI and the Knowledge-based Economy in India: Software and Global R&D Hub
		Foreign Technology Transfers
		Policy Lessons
		New Policies
		A Comparative Statistical Outline of Fdi
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 26 Multinational Corporations
		Origin
		Meaning
		Definition
		Objectives
		Modes of Entry into Foreign Markets
		Global Sourcing
		Reasons for the Growth of Mnc s
		Favourable Impact of Mnc s
		Harmful Effects of the Operations of Mnc s on Indian Economy
		Domination of Mnc s over Indian Economy
		Liberalization and Mnc s
		A Critique of Mnc s
		Multinational Companies and Production Linkages
		Mnc s Deal a Blow to Domestic Companies
		Mnc s and Global Imbalance
		Acquisition of Mnc s by Indians
		Case 1
		Case 2
		Summary
		Key Words
		Questions
		References
	Chapter 27 India’s Import–Export Policies
		Historical Perspective
		Governing Authority
		India: Pre- and Post-liberalization
		Liberalization Policy of Exim
		Annexure I
		Annexure II
		Annexure III
		Exim Performance
		Exim Policies
		India’s Exim Performance
		Regional Trade Agreements
		Export Promotion Measures
		Special Economic Zones
		Agri-export Zones
		Highlights of Foreign Trade Policy, 2009–2014
		Case
		Summary
		Key Words
		Questions
		References
	Chapter 28 Special Economic Zones in India
		Concept and Meaning of Sez
		The History of Sez
		Definition of Sez
		Who Can Set up Sez and its Requirements
		Approval Mechanism
		Sez s In India
		Advantages and Disadvantages of Sez
		Performance of Sez In India
		Important Sez s in India
		Features and Facilities of Sez s in India
		Sez and Export Promotion
		Sez Policy of India: Sez Act and Sez Rules
		Salient Features/Provisions of Sez Rules
		Sez Controversy
		Sez s—A Global Overview
		Conclusion
		Case
		Key Words
		Questions
		References
	Chapter 29 International Business Environment
		The Nature of International Business Environment
		Trends in the World Trade and Economic Growth
		General Agreement on Tariffs and Trade (GATT)
		General Agreement on Trade in Services (GATS) 801
		International Organizations
		International Monetary Fund (IMF)
		World Bank (WB) 813
		An Evaluation of IMF–WB
		World Trade Organization (WTO)
		International Finance Corporation (IFC)
		Asian Development Bank (ADB)
		United Nations Conference on Trade and Development (UNCTAD)
		United Nations Industrial Development Organization (UNIDO)
		International Trade Centre (ITC)
		Generalized System of Preferences (GSP)
		Global System of Trade Preferences (GSTP)
		Case
		Key Words
		Questions
		References
	Chapter 30 World Trade Organization
		Background
		Meaning and Agreements
		Functions
		Principles of Trading
		Provisions for Developing Countries
		Other Provisions
		The WTO Agreement
		Liberalizing Trade in Goods
		Textiles—Back in the Mainstream Rules
		Agriculture: Fairer Markets for all
		Trade Remedies
		Standards and Procedures
		Administrative Procedures
		Investment Measures
		Disputes Settlement Mechanisms
		Ministerial Meetings
		Trade-related Aspects of Intellectual Property Rights (TRIPs)
		Trade-related Investment Measures (TRIMs)
		Non-tariff Barriers (NTBs) and Dispute Settlement Mechanism
		Anti-Dumping Measures
		Subsidies
		Singapore Ministerial Meeting, 1996
		Geneva Ministerial Meeting, 1998
		Seattle Ministerial Meeting, 1999 853
		Doha Ministerial Meeting, 2001
		Cancun Ministerial Meeting, 2003
		Trade and Development: Recent Trends and the Role of the WTO
		Conclusion
		Summary
		Key Words
		Questions
		References
	Glossary
	Bibliography
	Index