E-LESSON-4, 5

IDOL Institute of Distance and Online Learning ENHANCE YOUR QUALIFICATION, ADVANCE YOUR CAREER.

M.B.A 2 All right are reserved with CU-IDOL BUSINESS ENVIRONMENT AND REGULATORY FRAMEWORK Course Code : MBA605 Semester : First SLM UNIT : 4&5 E- lesson : 3 www.cuidol.in Unit-3 (MBA605)

POLITICO-LEGAL ENVIRONMENT OBJECTIVES INTRODUCTION 33 Student will be able to : Businessmen are keenly interested in politics Get an idea of the relationship between business and many try to influence political decisions like and government in India those related to industrial policy, foreign capital and technology, fiscal policy and export-import Examine the economic roles of government in a policy mixed economy Proper regulations are a must for effective Explain the rationale of anti-competitive regulations working of a market economy. Get a glimpse of MRTP Act. Absence of regulations might lead to crushing small firms through unfair means by powerful Evaluate the impacts of the industrial policy competitors, dominance of market by collusion liberalisations. /cartelisation, mergers and acquisitions (M&As), unfair and restrictive trade practices, cross subsidisation that distorts fair competition etc. www.cuidol.in Unit-3 (MBA605) INSTITAUllTEriOghF tDaISreTArNesCeErAveNdDwOiNthLICNUE-LIDEAORLNING

TOPICS TO BE COVERED > Functions of State 4 > Reinvigorating the State’s Capability > Economic Roles of Government > Constitutional Provisions Affecting Business - The Preamble - Fundamental Rights - Fundamental Duties - Directive Principles > MRTP Act > Main Provisions of Competition Act, 2002 > Prohibition of Anti-competitive Agreements Industrial Policy after 1991, > Evaluation of Industrial Policy Liberalisations www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

FUNCTIONS OF STATE 5 There are very divergent perceptions of the functions of the State (i.e., government). On the one extreme is the view that “the government that governs the least is the best” (the laissez-faire philosophy) and on the other extreme is the demand for government ownership or control of almost everything. A number of countries have, in fact, been transitioning from marx to the market. Functions of the State vary from basic minimum requirements to active participation in several other sectors. These functions, as described by a World Bank Report,3 are 1. Basic Functions 2. Intermediate Functions 3. Promoting Markets www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

FUNCTIONS OF STATE 6 Basic Functions: such as the provision of property rights, macroeconomic stability, control of infectious diseases, safe water, roads and protection of the destitute. Intermediate Functions: such as management of externalities (pollution, for example), regulation of monopolies, and the provision of social insurance (pensions, unemployment benefits etc.). Promoting Markets: States with strong capability can take on more activist functions , dealing with the problem of missing markets by helping co-ordination like promoting markets through active industrial and financial policy. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Reinvigorating the State’s Capabilitydfffcvfff 7 REINVIGORATING THE STATE'S CAPABILITY The World Bank Report has cited the following suggestions for reinvigorating the State’s capability.: ❖ Rules and Restraints: Mechanisms for enforcing the rule of law, such as an independent judiciary, are critical foundations for sustainable development. ❖ Competitive Pressure: Competitive pressure can come from within the State bureaucracy through recruitment of civil servants on the basis of merit. It can come from the domestic private sector, through contracting out for services and allowing private providers to compete directly with public agencies. Or it can come from the international marketplace, through trade and through the influence of global bond markets on fiscal decisions. ❖ Voice and Partnership: The means to achieve transparency in modern society like — business councils, interaction groups, and consumer groups, to name a few. And partnerships between levels of government and with international bodies can help in the provision of local and global public goods. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

ECONOMIC ROLES OF GOVERNMENT 8 The Government plays an important role in almost every national economy of the world. The extent and nature of the control vary widely between nations, depending upon the nature and stage of development of the economy, the behaviour of the private sector, the political philosophy, social attitudes, administrative system etc. Governments normally plays four important roles in an economy, viz., regulation, promotion, entrepreneurship and planning. Some salient features of these roles are Regulatory Role: Government regulation of the business may cover a broad spectrum extending from entry into business to the final results of a business. The reservation of industries to small scale, public and co-operative sectors, licensing system etc. regulates the entry. Regulations of product mix , promotional activities etc. amounts to regulation of the conduct of business. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

ECONOMIC ROLES OF GOVERNMENT 9 Promotional Role: The promotional role of the State also encompasses the provision of various fiscal, monetary and other incentives, including measures to cover certain risks, for the development of certain priority sectors and activities. Entrepreneurial Role: A number of factors such as socio- political ideologies; dearth of private entrepreneurship; neglect of certain sectors, like the unprofitable sectors, by the private entrepreneurs; absence of or inadequate competition in certain segments and the resultant exploitation of consumers etc. have contributed to the growth of State- owned enterprises (SOEs) in many countries Planning Role: Especially in the developing countries, the State plays a very important role as a planner. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

CONSTITUTIONAL PROVISIONS AFFECTING 10 BUSINESS ❖ The Indian Constitution incorporates a number of matters that are politically, socially and economically very significant and have far-reaching implications for business. ❖ The Preamble: The Preamble of a statute conveys the general object and intention of the legislature in ❖ enacting it. It expresses the political, religious and socio-economic values which it envisages to promote. ❖ The Fundamental Rights: The Fundamental Rights enumerated in Part III of the Constitution are: 1. Right to Equality 2. Right to Freedom 3. Right against Exploitation 4. Right to Freedom of Religion 5. Cultural and Educational Rights 6. Right to Constitutional Remedies ❖ Fundamental Duties: to promote harmony and spirit of common brotherhood amongst all people of India www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

CONSTITUTIONAL PROVISIONS AFFECTING 11 BUSINESS The Directive Principles: They are the imperative basis of State policy and the Constitution directs the State to apply these principles in making laws. Freedom of Trade, Commerce and Intercourse: the Parliament may impose such restrictions on the freedom of trade, commerce or intercourse between one State and another or within any part of the territory of India as may be required in the public interest. Separation of Powers: is an important feature of the Indian Constitution. The separation of powers contemplates the idea that the governmental functions must be based on a tripartite division of legislature, executive and judiciary. Each organ should be separate, distinct and sovereign in its own allocated sphere, and it should not exercise the functions assigned to another. Division of Power: India’s Constitution distributes the items for legislation among three lists - the Union List, State List, Concurrent List. The respective jurisdictions of the Union and the States and their mutual relations have been clearly defined. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

MRTP ACT 12 All right are reserved with CU-IDOL ❖ Monopolies and Restrictive Trade Practices Act, 1969 ❖ The main objectives of the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, the principal law in India to deal with competition were: (1) Prevention of concentration of economic power to the common detriment 2) Control of monopolistic, restrictive and unfair trade practices which are prejudicial to public interest ❖ The MRTP Act empowered the Central Government to control and prohibit those monopolistic, restrictive and unfair trade practices that are, or are likely to be prejudicial to the public interest. www.cuidol.in Unit-3 (MBA605)

Main Provisions of Competition Act, 2002 13 ❖ The Competition Act, replaced the MRTP Act, shifted the focus from curbing monopolies to encouraging companies to invest and grow, thereby promoting competition while preventing any abuse of market power. ❖ The Competition Act has essentially four components. The Act: ❖ Prohibits anti-competitive agreements like cartels, which restrict freedom of trade and cause consumer harm by way of limiting production and distribution of goods and services and fixing prices higher than normal. ❖ Prohibits abusive behaviour of a dominant firm, who through its position of dominance may restrict markets and set unfair and discriminatory conditions. ❖ Regulates mergers and acquisitions of large corporations in order to safeguard competitive markets. ❖ Mandates competition advocacy. (With the objective to create awareness on competition issues, the Commission organises interactive meetings, workshops and seminars etc. with different regulatory bodies, policymakers, trade organisations, consumer associations and public at large. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Competition Commission & Appellate Tribunal 14 ❖ Objectives of Competition Act and Duties of CCI: ✓ The duties of the Competition Commission as laid down in the Act are the following. ✓ To eliminate practices having adverse effect on competition. ✓ To promote and sustain competition in markets. ✓ To protect the interests of consumers. ✓ To ensure freedom of trade carried on by other participants in markets in India. ❖ The Government of India also set up a Competition Appellate Tribunal (COMPAT) on 19th October, 2009, under the provisions of the Competition Act, 2002, to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Prohibition of Anti-competitive Agreements 15 An anti-competitive agreement is an agreement between an enterprise or association of enterprises or person or association of persons pertaining to production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India. According to the Act, agreements or decisions which have any of the following effects shall be presumed to have an appreciable adverse effect on competition: 1. Directly or indirectly determines purchase or sale prices. 2. Limits or controls production, supply, markets, technical development, investment or provision of services. 3. Shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or services, or number of customers in the market or any other similar way. 4. Directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have an appreciable adverse effect on competition. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Prohibition of Abuse of Dominant Position 16 Dominant position means a position of strength, enjoyed by an enterprise or group, which enables it to: (i) operate independently of competitive forces prevailing in the relevant market; or (ii) affect its competitors or consumers or the relevant market in its favour. In simple and generic terms, abuse of dominant position involves: 1. Directly or indirectly imposing unfair or discriminatory condition or price (including predatory price) in purchase or sale of goods or service: 2. (Predatory price means the sale of goods or provision of services, at a price which is below the cost, with a view to reduce competition or eliminate the competitors). 2. Limiting or restricting: (a) Production of goods or provision of services or market (b) Technical or scientific development relating to goods or services to the prejudice of consumers. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Prohibition of Abuse of Dominant Position 17 3. Indulging in any practice causing denial of market access in any manner. 4. Making contracts necessitating acceptance by other parties of unjustifiable supplementary obligations. 5. Using the dominant position in one relevant market to enter into, or protect, other relevant market. ❖ Division of Enterprise Enjoying Dominant Position: According to Section 28 of the Act, the Competition Commissions may order the division of the enterprise (as detailed in the Act) enjoying dominant position to ensure that such enterprise does not abuse its dominant position. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Regulation of Combinations 18 ❖ The Act provides for regulation of combination through mergers and acquisitions which causes or is likely to cause an appreciable effect on competition. The Competition Commission has the power to regulate mergers or combinations and to reverse mergers or combinations if it is of the opinion that a merger or combination has or is likely to have an ‘Appreciable Adverse Effect’ (AAE) on competition in India. ❖ The Competition (Amendment) Act, 2007 has mandated pre- merger clearances from CCI to ascertain whether a ‘combination’ has an ‘AAE’ on competition within India. ❖ Combinations include mergers, amalgamations and acquisitions of control, shares, voting rights or assets. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Industrial Policy after 1991 ❖ Until June 1991, India followed a very restrictive economic policy characterised by exclusion of private sector 19 from many important industries, monopoly or dominance of public sector in a number of important industries and sectors, entry and growth restrictions on private, particularly large, enterprises and limited role of and stringent restrictions on foreign capital and technology. ❖ The economic liberalisation ushered in 1991 changed the scenario substantially. The main flank of economic reforms in India was deregulation and expansion of scope of private business. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Industrial Policy after 1991 20 The salient features of the liberalisation since 1991 are the following: 1. Abridgement of Role of Public Sector and Expansion of Scope of Private Sector: Until the liberalisation, the development of 17 of the most important industries was exclusively reserved for the public sector, and in 12 of the remaining important industries, the public sector was assigned a dominant role, the role of the private sector being a supplementary one. The scope of the private sector was, thus, limited. Now, only few industries are reserved for the public sector. 2. Removal of Entry and Growth Restrictions: There had been several entry and growth restrictions on the private sector under the licensing regulations and Monopolies and Restrictive Practices (MRTP) Act. A licence was required for establishing a new undertaking with investment above certain limit, or manufacture of a new item and for substantially expanding an existing undertaking. The new policy has substantially reduced the entry and growth restrictions by delicensing all but a limited number of industries and scrapping the MRTP restrictions on growth. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Industrial Policy after 1991 21 3. Liberalisation of Foreign Investment: Earlier, foreign investment required prior approval of the government. Foreign equity was not allowed, normally, to exceed 40 per cent of the total. The new policy has enormously expanded the scope of foreign investment. There is now automatic approval (i.e., no prior approval is required) for foreign investment up to specified limits in a large number of industries. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Industrial Policy after 1991 22 4. Reform of Trade Policy: The salient features of the trade policy reform are the following : (a) Exchange rate adjustment – To make the exchange rate more realistic and to encourage exports and discourage imports, the Rupee was devalued in 1991 and convertibility of the Rupee on current account was introduced. (b) The role of subsidies in export promotion was substantially reduced by abolishing the cash compensatory support (CCS). The import entitlement scheme for exporters known as Replenishment Licence (REP) which was modified as Exim scrip was also withdrawn. (c) Liberalisation of imports by substantially eliminating licensing, quantitative restrictions and other regulatory controls. There has also been a considerable reduction in the import duties. (d) Procedural simplification. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Industrial Policy after 1991 23 5. Exchange Rate Reform: As a first step towards free convertibility of rupee, a scheme of partial convertibility of the Rupee was introduced in March 1992. Accordingly, exporters got 40 per cent of the foreign exchange earnings converted into rupee at the official rate determined by the Reserve Bank of India. The remaining 60 per cent of the export earnings could be converted at the free market rate quoted by the authorised dealers. Full convertibility on trade account was introduced in 1994. Slow, but progressive, steps have been initiated for capital account convertibility. 6. Capital Market Reforms: The functioning of the stock exchanges had been characterised by many shortcomings with long delays, lack of transparency in procedures and vulnerability to price rigging and insider trading. A number of measures have been taken to overcome these problems. The objectives of these measures, broadly, have been to provide for effective control of the stock exchange operations; increase the information flow and disclosures so as to enhance the transparency; protect the interests of investors; check insider trading; improve the operational efficiency of the stock exchanges and, in general, to promote healthy development of the capital market. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Evaluation of Industrial Policy Liberalisations 24 A large number of companies – Indian and foreign – saw enormous opportunities in these changes and have been prompted to design strategies to exploit them. At the same time, the threats unleashed by these changes have been tremendous, like the intensifying competition, demanding firms to develop strategies to combat them. The highlights of the favourable effects of liberalisation are the following: 1. The opening up of the industries exclusively reserved for the public sector to the private sector paved the way for faster growth of these industries by increased investment and expanded entrepreneurship. Unlike in the previous era, private enterprises now have enormous scope to decide their portfolio strategy (corporate strategy). 2. The liberalisation of foreign investment policy has helped to step up the investment in a number of industries, including several vital sectors. This poses threat to the existing firms in these industries, necessitating new strategies to cope up with the new environment. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Evaluation of Industrial Policy Liberalisations 25 3. The FII has invigorated the Indian capital market. 4. An important impact of the liberalisation is the faster development of the infrastructural sector driven by private investment, both domestic and foreign. However, the pace of infrastructure development is still quite unsatisfactory and this will be a major constraint in speeding up pace of overall development. 5. The removal of restrictions on entry and growth has been helping companies to rationalise their business portfolio and product mix, improve efficiency and to achieve faster growth. 6. The liberalisation, by delicensing, scrapping of MRTP restrictions and privatisation, has paved way for business consolidation, helping achievement of scale economies and efficiency improvements. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Evaluation of Industrial Policy Liberalisations 7. As implied in some of the points mentioned above, the new industrial policy enables corporates to restructure thei2r6 portfolios, adding new business and/or exiting some of the old businesses. 8. The easy access to foreign technology (including capital goods), intermediates and raw materials help improve the competitiveness of the Indian firms. 9. The increase in competition and the scope for global sourcing (as mentioned above) have increased the competitiveness of Indian firms. This is significantly encouraging globalisation of Indian firms, as is evinced by the increase in exports, setting up of greenfield enterprises abroad and cross-border mergers and acquisitions. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Evaluation of Industrial Policy Liberalisations 27 10. The increase in competition has helped to improve the efficiency and competitiveness of public sector enterprises. 11. The growth of large firms is encouraging growth of small- scale and medium-scale units by ancillarisation and outsourcing. Many such firms are getting technological and managerial support from the large firms, both domestic and foreign. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Evaluation of Industrial Policy Liberalisations 28 12. One of the greatest advantages of liberalisation is the benefits the consumers derive from the increasing competition. What were seller’s markets in the past have been becoming buyer’s markets, increasing the bargaining power of the buyers. ❖ Consumers benefit from competition in the following ways: ✓ Choice of goods and services has increased fabulously. ✓ There is very substantial improvement in product quality and features. ✓ Competition keeps a lid on prices. ✓ Firms are becoming more and more innovative, introducing new and improved products. ✓ After-sales service is becoming increasingly important. ✓ Consumers are now getting much better credit and other facilities and incentives. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Adverse Effects of Liberalisation 29 Liberalisation has many potential dangers unless done prudently. 1. Competition between unequals: Relatively small Indian firms have to compete with large foreign firms with huge resources and vast experiences. 2. Market orientation: The pattern and direction of development are determined mostly by market forces rather than by larger national interests. 3. Unfair competition: Large firms, particularly multinationals, may engage in unfair competition to the detriment of small and medium firms. The nation needs to effectively implement the Competition Law to check this. 4. Income drain: Increasing presence of foreign firms would cause drain of income from India to abroad. (At the same time, the increasing presence of Indian firms would have the opposite effect). www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

30 Adverse Effects of Liberalisation 5. Ecological deterioration: It is argued that delicensing could result in indiscriminate industrial location and resources depletion, causing ecological problems and heavy social costs. There are, however, government safeguards against this. 6. Demonstration effect and conspicuous consumption: The flood of all sorts of goods from all parts of the world and the marketing tactics (including unscrupulous) foster demonstration effect and encourage conspicuous consumption. 7. Skimming the cream: Increasing FII investment would mean that the Indian stock market is increasingly influenced by foreign players. This would also mean siphoning away of profits of Indian firms by foreign players. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Adverse Effects of Liberalisation 31 8. Neglect of social aspects: Several important social aspects are ignored by liberalisation. Here, it may be pointed out that effective government intervention can help solve the problem. Not only that liberalisation does not mean absence of government intervention for societal benefits but also is a must for liberalisation to be efficient and beneficial. 9. Absence of a level-playing field: Indian industry also suffers from absence of alevel_x0002_playing field. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Impact of Liberalisation: 32 Measures Needed for Improvement Government needs to take certain measures to make the environment more conducive for faster and healthy development of the industry and economy. These include: 1. Rationalisation of policies and procedures to usher in more transparency and ease of doing business. 2. Ensuring a level playing field to put the Indian firms on equal footing with their foreign counterparts. 3. Effective implementation of the Competition Act to safeguard the Indian firms and consumers from unfair competition. 4. Effective policies and regulations for ecological protection. 5. Effective control over imports and smuggling to ensure that foreign goods enter the Indian market strictly as per government policies and regulations only. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Impact of Liberalisation: 33 Measures Needed for Improvement 6. Measures against dumping. 7. Effective monitoring and control of the imports through Free/Preferential Trade Agreement. 8. Adequate protection to Indian firms from unhealthy and unfair competitions. Wherever needed, infant industry protection shall be accorded on a rational basis. 9. Measures to improve the infrastructure and common support to the industries. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

Impact of Liberalisation: 34 Measures Needed for Improvement 10. Reform of the administrative system to make it more efficient, transparent and business friendly. 11. Imposing a condition that foreign firms operating in India (except small trading and the like) list on Indian stock exchange so that Indian public can also share the prosperity of business of these firms. 12. Foreign goods shall be subject to rigorous quality and other mandatory checks. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS 1. Entrepreneurial role of government refers to: 35 (a) Promotion of entrepreneurs (b) Control of entrepreneurs (c) Direct involvement in business (d) Providing financial assistance to entrepreneurs 2) Measures for redistribution of income by the government is: (a) An activist function (b) A supplementary function (c) An adjunct function (d) Extra function 3) Right to freedom of religion is a: (a) Directive principle (b) Fundamental right (c) Part of the Preamble to the constitution (d) Social right 4) Which one of the following is not a part of the Indian Constitution? (a) Fundamental Rights (b) Directive Principles (c) Fundamental Duties (d) Planning Commission Answers: 1. (c) , 2. (a), 3. (b) , 4. (d) www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTIONS Q 1) What is the economic role of the government? 36 Regulatory Role: Government regulation of the business covers a broad spectrum extending from entry into business to the final results of a business like the reservation of industries to small scale, public and co-operative sectors, licensing system etc. Promotional Role: The promotional role of the State also encompasses the provision of various fiscal, monetary and other incentives, including measures to cover certain risks, for the development of certain priority sectors and activities. Entrepreneurial Role: A number of factors such as socio-political ideologies; dearth of private entrepreneurship; neglect of certain sectors, like the unprofitable sectors, by the private entrepreneurs have contributed to the growth of State-owned enterprises (SOEs). For detail refer to SLM Q 2) What was the objective of the MRTP Act? The main objectives of the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, the principal law in India to deal with competition were: (1) Prevention of concentration of economic power to the common detriment (2) Control of monopolistic, restrictive and unfair trade practices which are prejudicial to public interest The MRTP Act empowered the Central Government to control and prohibit those monopolistic, restrictive and unfair trade practices that are, or are likely to be prejudicial to the public interest. For detail refer to SLM www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

SUMMARY 37 ❖ The State plays a very active role in all economies, including the market economies, albeit, the extent and nature of State intervention vary widely between nations. ❖ Functions of the State varies from basic minimum requirements to active participation in several other sectors. ❖ The economic roles of Government may be classified into four categories. - Basic Functions - Intermediate Functions - Activist Functions ❖ The economic liberalisation has increased the need for and relevance of competition policy and law because while the liberalisation unleashes competitive forces, in the absence of safeguards, this may also provide scope for unfair competition, like powerful competitors crushing small firms through unfair means, collusion, and M&As detrimental to competition. ❖ The economic reforms in India since 1991 have unleashed growth impulses and increased competition benefiting consumers and the economy. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

REFERENCES 38 ❖ Marshall E. Dimock, “Business and Government”, New York: Holt, Rinehan and Winston Inc., 1960, p. 1. ❖ World Bank, World Development Report 1997, p. 19. ❖ UNCTAD, World Investment Report 1997, p. 190. Suggested Readings 1. Joseph Stiglitz, The Great Divide. 2. Francis Cherunilam, Business Environment: Text and Cases. 3. Government of India, Department for Promotion of Industry and Internal Trade, Role and Functions of the Department for Promotion of Industry and Internal Trade 4. Ministry of Law, Government of India, The Competition Act, 2002. 5. Government of India, Report of the High Level Committee on Competition Policy and Competition Law. www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL

39 THANK YOU For queries Email: [email protected] www.cuidol.in Unit-3 (MBA605) All right are reserved with CU-IDOL