PAPER – 2 || VOLUME – 1

NATIONAL TESTING AGENCY (NTA)

COMMERCE

1.1.1.1. CCCConcepts and elements of business environmentoncepts and elements of business environmentoncepts and elements of business environmentoncepts and elements of business environment 1111

2.2.2.2. Introduction to Consumer Protection Introduction to Consumer Protection Introduction to Consumer Protection Introduction to Consumer Protection 5555

3.3.3.3. Foreign Exchange Management Act Foreign Exchange Management Act Foreign Exchange Management Act Foreign Exchange Management Act – FEMA FEMA FEMA FEMA 11111111

4.4.4.4. Corporate Social Responsibility Corporate Social Responsibility Corporate Social Responsibility Corporate Social Responsibility 18181818

5.5.5.5. Scope and importance of international businessScope and importance of international businessScope and importance of international businessScope and importance of international business 22222222

6.6.6.6. Theories of international tradeTheories of international tradeTheories of international tradeTheories of international trade 38383838

7.7.7.7. Balance of payments (BOP)Balance of payments (BOP)Balance of payments (BOP)Balance of payments (BOP) 45454545

8.8.8.8. Regional Economic Integration Regional Economic Integration Regional Economic Integration Regional Economic Integration 54545454

9.9.9.9. Concept of Foreign direct investment (FDI) Concept of Foreign direct investment (FDI) Concept of Foreign direct investment (FDI) Concept of Foreign direct investment (FDI) 55555555

10.10.10.10. International Economic institutionsInternational Economic institutionsInternational Economic institutionsInternational Economic institutions 61616161

11.11.11.11. World Trade OrganisaWorld Trade OrganisaWorld Trade OrganisaWorld Trade Organisation (WTO)tion (WTO)tion (WTO)tion (WTO) 61616161

12.12.12.12. International Monetary Fund International Monetary Fund International Monetary Fund International Monetary Fund 63636363

13.13.13.13. Agreement on agriculture (AOA) Agreement on agriculture (AOA) Agreement on agriculture (AOA) Agreement on agriculture (AOA) 66666666

14.14.14.14. Agreement on AntiAgreement on AntiAgreement on AntiAgreement on Anti----Dumping (ADA) Dumping (ADA) Dumping (ADA) Dumping (ADA) 67676767

1.1.1.1. Managerial Economic Managerial Economic Managerial Economic Managerial Economic 70707070

2.2.2.2. Demand Demand Demand Demand 71717171

3.3.3.3. Utility Utility Utility Utility 72727272

4.4.4.4. Indifference Curve Indifference Curve Indifference Curve Indifference Curve 76767676

5.5.5.5. National Income National Income National Income National Income 82828282

6.6.6.6. Three Approaches to GNP Three Approaches to GNP Three Approaches to GNP Three Approaches to GNP 86868686

7.7.7.7. Inflation Inflation Inflation Inflation 95959595

1.1.1.1. Scope and sources of financeScope and sources of financeScope and sources of financeScope and sources of finance 100100100100

2.2.2.2. According to Ownership and Control According to Ownership and Control According to Ownership and Control According to Ownership and Control 104104104104

3.3.3.3. Lease Financing Lease Financing Lease Financing Lease Financing 107107107107

4.4.4.4. Financial Management Financial Management Financial Management Financial Management 109109109109

5.5.5.5. CapitalCapitalCapitalCapital structurestructurestructurestructure 114114114114

6.6.6.6. Theories of CTheories of CTheories of CTheories of Capital Structure apital Structure apital Structure apital Structure 118118118118

7.7.7.7. MM Hypothesis MM Hypothesis MM Hypothesis MM Hypothesis 124124124124

8.8.8.8. Cost of Capital Cost of Capital Cost of Capital Cost of Capital 127127127127

9.9.9.9. TTTTime Value of ime Value of ime Value of ime Value of Money Money Money Money 137137137137

10.10.10.10. Valuation of Securities and Assets Valuation of Securities and Assets Valuation of Securities and Assets Valuation of Securities and Assets 143143143143

11.11.11.11. Risk and Return Risk and Return Risk and Return Risk and Return 151151151151

12.12.12.12. Capital Budgeting Capital Budgeting Capital Budgeting Capital Budgeting 157157157157

13.13.13.13. Comparison of Various Methods Comparison of Various Methods Comparison of Various Methods Comparison of Various Methods 166166166166

14.14.14.14. Risk and Uncertainty Analysis Risk and Uncertainty Analysis Risk and Uncertainty Analysis Risk and Uncertainty Analysis 167167167167

15.15.15.15. Dividend Decision and Policy Dividend Decision and Policy Dividend Decision and Policy Dividend Decision and Policy 169169169169

16.16.16.16. Working Capital Management Working Capital Management Working Capital Management Working Capital Management 174174174174

17.17.17.17. Foreign Exchange MForeign Exchange MForeign Exchange MForeign Exchange Market arket arket arket 186186186186

18.18.18.18. Exchange Rate Systems Exchange Rate Systems Exchange Rate Systems Exchange Rate Systems 197197197197

19.19.19.19. International Monetary System International Monetary System International Monetary System International Monetary System 200200200200

20.20.20.20. International Financial Market Instruments International Financial Market Instruments International Financial Market Instruments International Financial Market Instruments 207207207207

21.21.21.21. American Depository Receipt (ADR) American Depository Receipt (ADR) American Depository Receipt (ADR) American Depository Receipt (ADR) 207207207207

22.22.22.22. International Arbitrage International Arbitrage International Arbitrage International Arbitrage 209209209209

The term ‘business environment’ connotes external forces, factors and institutions The term ‘business environment’ connotes external forces, factors and institutions The term ‘business environment’ connotes external forces, factors and institutions The term ‘business environment’ connotes external forces, factors and institutions

that are beyond the control of the business and they affect the functioning of a that are beyond the control of the business and they affect the functioning of a that are beyond the control of the business and they affect the functioning of a that are beyond the control of the business and they affect the functioning of a

business enterprisbusiness enterprisbusiness enterprisbusiness enterprise. These include customers, competitors, suppliers, government, and e. These include customers, competitors, suppliers, government, and e. These include customers, competitors, suppliers, government, and e. These include customers, competitors, suppliers, government, and

the social, political, legal and technological factors etc. While some of these factors the social, political, legal and technological factors etc. While some of these factors the social, political, legal and technological factors etc. While some of these factors the social, political, legal and technological factors etc. While some of these factors

or forces may have direct influence over the business firm, others may operate or forces may have direct influence over the business firm, others may operate or forces may have direct influence over the business firm, others may operate or forces may have direct influence over the business firm, others may operate

indirectly. Thus, busindirectly. Thus, busindirectly. Thus, busindirectly. Thus, business environment may be defined as the total surroundings, iness environment may be defined as the total surroundings, iness environment may be defined as the total surroundings, iness environment may be defined as the total surroundings,

which have a direct or indirect bearing on the functioning of business. It may also which have a direct or indirect bearing on the functioning of business. It may also which have a direct or indirect bearing on the functioning of business. It may also which have a direct or indirect bearing on the functioning of business. It may also

be defined as the set of external factors, such as economic factors, social factors, be defined as the set of external factors, such as economic factors, social factors, be defined as the set of external factors, such as economic factors, social factors, be defined as the set of external factors, such as economic factors, social factors,

political and legal factorspolitical and legal factorspolitical and legal factorspolitical and legal factors, demographic factors, , demographic factors, , demographic factors, , demographic factors, and technicaland technicaland technicaland technical factors etc., which are factors etc., which are factors etc., which are factors etc., which are

uncontrollable in nature and affects the business decisions of a firm.uncontrollable in nature and affects the business decisions of a firm.uncontrollable in nature and affects the business decisions of a firm.uncontrollable in nature and affects the business decisions of a firm.

The salient features of the business environment are given hereunder:The salient features of the business environment are given hereunder:The salient features of the business environment are given hereunder:The salient features of the business environment are given hereunder:

1.1.1.1. : The environment in which the business operates changes continuously : The environment in which the business operates changes continuously : The environment in which the business operates changes continuously : The environment in which the business operates changes continuously

because there is a wide variety of factors that exist in the environment, because there is a wide variety of factors that exist in the environment, because there is a wide variety of factors that exist in the environment, because there is a wide variety of factors that exist in the environment,

causing it to change its shape and character.causing it to change its shape and character.causing it to change its shape and character.causing it to change its shape and character.

2.2.2.2. : There are many forces, events and conditions that : There are many forces, events and conditions that : There are many forces, events and conditions that : There are many forces, events and conditions that constitute business constitute business constitute business constitute business

environment, arising from various sources. So, it is a bit difficult to understand environment, arising from various sources. So, it is a bit difficult to understand environment, arising from various sources. So, it is a bit difficult to understand environment, arising from various sources. So, it is a bit difficult to understand

the relative influence of a particular factor, on the operation of the organisation.the relative influence of a particular factor, on the operation of the organisation.the relative influence of a particular factor, on the operation of the organisation.the relative influence of a particular factor, on the operation of the organisation.

3.3.3.3. : Uncertainty is an inherent characteristic of the business: Uncertainty is an inherent characteristic of the business: Uncertainty is an inherent characteristic of the business: Uncertainty is an inherent characteristic of the business environment environment environment environment

because no one can predict what is going to happen in future.because no one can predict what is going to happen in future.because no one can predict what is going to happen in future.because no one can predict what is going to happen in future.

4.4.4.4. : A single change in the business environment, can be viewed : A single change in the business environment, can be viewed : A single change in the business environment, can be viewed : A single change in the business environment, can be viewed

differently by different observers because their perceptions vary.differently by different observers because their perceptions vary.differently by different observers because their perceptions vary.differently by different observers because their perceptions vary.

5.5.5.5. : The : The : The : The survival, growth and profitability, of a business survival, growth and profitability, of a business survival, growth and profitability, of a business survival, growth and profitability, of a business

enterprise, depends largely on the environment in which it exists. A small enterprise, depends largely on the environment in which it exists. A small enterprise, depends largely on the environment in which it exists. A small enterprise, depends largely on the environment in which it exists. A small

change in the environment has a farchange in the environment has a farchange in the environment has a farchange in the environment has a far----reaching impact on the organisation in reaching impact on the organisation in reaching impact on the organisation in reaching impact on the organisation in

different ways.different ways.different ways.different ways.

6.6.6.6. : The notion of a business envir: The notion of a business envir: The notion of a business envir: The notion of a business environment is relative since it varies from onment is relative since it varies from onment is relative since it varies from onment is relative since it varies from

one location to another.one location to another.one location to another.one location to another.

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The Business Environment is broadly classified, into two categories:The Business Environment is broadly classified, into two categories:The Business Environment is broadly classified, into two categories:The Business Environment is broadly classified, into two categories:

1.1.1.1. : The factors which exist within the organisation, : The factors which exist within the organisation, : The factors which exist within the organisation, : The factors which exist within the organisation, imparting imparting imparting imparting

strength or causing weakness to the organisation, comes under internal strength or causing weakness to the organisation, comes under internal strength or causing weakness to the organisation, comes under internal strength or causing weakness to the organisation, comes under internal

environment. It includes:environment. It includes:environment. It includes:environment. It includes:

* Value SystemValue SystemValue SystemValue System

* Vision and MissionVision and MissionVision and MissionVision and Mission

* ObjectivesObjectivesObjectivesObjectives

* Corporate CultureCorporate CultureCorporate CultureCorporate Culture

* Human ResourcesHuman ResourcesHuman ResourcesHuman Resources

* Labor UnionLabor UnionLabor UnionLabor Union

2.2.2.2. : External Environment consists of thos: External Environment consists of thos: External Environment consists of thos: External Environment consists of those factors which e factors which e factors which e factors which

provide an opportunity or pose threats to the business. It is further classified provide an opportunity or pose threats to the business. It is further classified provide an opportunity or pose threats to the business. It is further classified provide an opportunity or pose threats to the business. It is further classified

as:as:as:as:

* : The immediate periphery of the business that has a : The immediate periphery of the business that has a : The immediate periphery of the business that has a : The immediate periphery of the business that has a

continuous and direct impact on it is called Micro Environment. It includes continuous and direct impact on it is called Micro Environment. It includes continuous and direct impact on it is called Micro Environment. It includes continuous and direct impact on it is called Micro Environment. It includes

supplierssupplierssupplierssuppliers, customers, competitors, market, intermediaries, etc. which are , customers, competitors, market, intermediaries, etc. which are , customers, competitors, market, intermediaries, etc. which are , customers, competitors, market, intermediaries, etc. which are

specific to the business.specific to the business.specific to the business.specific to the business.

* : Macro Environment, is one such environment that : Macro Environment, is one such environment that : Macro Environment, is one such environment that : Macro Environment, is one such environment that

influences the functioning and performance of every business organisation, influences the functioning and performance of every business organisation, influences the functioning and performance of every business organisation, influences the functioning and performance of every business organisation,

in general. It comprisein general. It comprisein general. It comprisein general. It comprises of the demographic, socios of the demographic, socios of the demographic, socios of the demographic, socio----cultural, legal, political, cultural, legal, political, cultural, legal, political, cultural, legal, political,

technological, and global environment.technological, and global environment.technological, and global environment.technological, and global environment.

All business enterprises, functions within an environment, called as the business All business enterprises, functions within an environment, called as the business All business enterprises, functions within an environment, called as the business All business enterprises, functions within an environment, called as the business

environment. An individual business firm survives and grows within the environment. An individual business firm survives and grows within the environment. An individual business firm survives and grows within the environment. An individual business firm survives and grows within the periphery of periphery of periphery of periphery of

its environment.its environment.its environment.its environment.

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A firm is only a part of a big environment, and so there are only a few factors A firm is only a part of a big environment, and so there are only a few factors A firm is only a part of a big environment, and so there are only a few factors A firm is only a part of a big environment, and so there are only a few factors

which are under the control of the firm.which are under the control of the firm.which are under the control of the firm.which are under the control of the firm.

So, the firm has no other option, but to respond and adapt accordingly. If business So, the firm has no other option, but to respond and adapt accordingly. If business So, the firm has no other option, but to respond and adapt accordingly. If business So, the firm has no other option, but to respond and adapt accordingly. If business

persons possess apersons possess apersons possess apersons possess a gogogogood understanding of the business environment, they can easily od understanding of the business environment, they can easily od understanding of the business environment, they can easily od understanding of the business environment, they can easily

recognise, analyse and react to the forces that affect the firm.recognise, analyse and react to the forces that affect the firm.recognise, analyse and react to the forces that affect the firm.recognise, analyse and react to the forces that affect the firm.

As we learned that there are variousAs we learned that there are variousAs we learned that there are variousAs we learned that there are various forcesforcesforcesforces that affect the business environment that affect the business environment that affect the business environment that affect the business environment

like like like like suppliers, customers, investors, competitors, etc. Now let’s understand the general suppliers, customers, investors, competitors, etc. Now let’s understand the general suppliers, customers, investors, competitors, etc. Now let’s understand the general suppliers, customers, investors, competitors, etc. Now let’s understand the general

forces that affect and shape the business environment. There are five general forces that affect and shape the business environment. There are five general forces that affect and shape the business environment. There are five general forces that affect and shape the business environment. There are five general

dimensions of the business environment.dimensions of the business environment.dimensions of the business environment.dimensions of the business environment.

* : : : : The simpThe simpThe simpThe simplest way to understand inflation is to see it lest way to understand inflation is to see it lest way to understand inflation is to see it lest way to understand inflation is to see it

as rising prices. If the economy is in the state of boom. Where business is as rising prices. If the economy is in the state of boom. Where business is as rising prices. If the economy is in the state of boom. Where business is as rising prices. If the economy is in the state of boom. Where business is

flourishing and everyone is earning good amount offlourishing and everyone is earning good amount offlourishing and everyone is earning good amount offlourishing and everyone is earning good amount of moneymoneymoneymoney which results in the which results in the which results in the which results in the

increase in purchasing power of the consumer. This meansincrease in purchasing power of the consumer. This meansincrease in purchasing power of the consumer. This meansincrease in purchasing power of the consumer. This means that producer is that producer is that producer is that producer is

able to sell his commodity at a high price in the market. Whereas, in a state able to sell his commodity at a high price in the market. Whereas, in a state able to sell his commodity at a high price in the market. Whereas, in a state able to sell his commodity at a high price in the market. Whereas, in a state

of depression in the economy, the purchasing and investing power of the of depression in the economy, the purchasing and investing power of the of depression in the economy, the purchasing and investing power of the of depression in the economy, the purchasing and investing power of the

customer falls down. As the firm can’t influence the general factors of business customer falls down. As the firm can’t influence the general factors of business customer falls down. As the firm can’t influence the general factors of business customer falls down. As the firm can’t influence the general factors of business

environenvironenvironenvironment, it has to change itself in order to survive the change. And ment, it has to change itself in order to survive the change. And ment, it has to change itself in order to survive the change. And ment, it has to change itself in order to survive the change. And

producer has to reproducer has to reproducer has to reproducer has to re----establish the prices of his commodity for people to afford establish the prices of his commodity for people to afford establish the prices of his commodity for people to afford establish the prices of his commodity for people to afford

it.it.it.it.

* :::: When business identifies a profitable opportunity they are When business identifies a profitable opportunity they are When business identifies a profitable opportunity they are When business identifies a profitable opportunity they are

observing the existence of a pobserving the existence of a pobserving the existence of a pobserving the existence of a potential demand for the product. And businesses otential demand for the product. And businesses otential demand for the product. And businesses otential demand for the product. And businesses

which can foresee potential profits have an incentive to increasewhich can foresee potential profits have an incentive to increasewhich can foresee potential profits have an incentive to increasewhich can foresee potential profits have an incentive to increase production. production. production. production.

Demand and the supply of a commodity in the market influence the business Demand and the supply of a commodity in the market influence the business Demand and the supply of a commodity in the market influence the business Demand and the supply of a commodity in the market influence the business

environment enormously. This factor is based on the demaenvironment enormously. This factor is based on the demaenvironment enormously. This factor is based on the demaenvironment enormously. This factor is based on the demand of a commodity nd of a commodity nd of a commodity nd of a commodity

in the market and the producer’s ability to produce it on time.in the market and the producer’s ability to produce it on time.in the market and the producer’s ability to produce it on time.in the market and the producer’s ability to produce it on time.

* :::: Government seek out to control the business environment in Government seek out to control the business environment in Government seek out to control the business environment in Government seek out to control the business environment in

order to meet a range of objectives. These include stability and predictability, order to meet a range of objectives. These include stability and predictability, order to meet a range of objectives. These include stability and predictability, order to meet a range of objectives. These include stability and predictability,

health and health and health and health and safety. Local, state and national policies affect thesafety. Local, state and national policies affect thesafety. Local, state and national policies affect thesafety. Local, state and national policies affect the planningplanningplanningplanning and and and and

operations of business deeply. Economic policies are drafted to direct the operations of business deeply. Economic policies are drafted to direct the operations of business deeply. Economic policies are drafted to direct the operations of business deeply. Economic policies are drafted to direct the

economic activities. They include importeconomic activities. They include importeconomic activities. They include importeconomic activities. They include import----export, employment, tax structure, export, employment, tax structure, export, employment, tax structure, export, employment, tax structure,

industry, public expenditure, public dindustry, public expenditure, public dindustry, public expenditure, public dindustry, public expenditure, public debt, foreign investment, etc.ebt, foreign investment, etc.ebt, foreign investment, etc.ebt, foreign investment, etc.

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* :::: In India, culture and traditions influence aIn India, culture and traditions influence aIn India, culture and traditions influence aIn India, culture and traditions influence a majority majority majority majority

ofofofof business. Traditions mean the social practices that have passed down from business. Traditions mean the social practices that have passed down from business. Traditions mean the social practices that have passed down from business. Traditions mean the social practices that have passed down from

one generation to another. For example, Diwali, Cone generation to another. For example, Diwali, Cone generation to another. For example, Diwali, Cone generation to another. For example, Diwali, Christmas and Eid. These hristmas and Eid. These hristmas and Eid. These hristmas and Eid. These

festivals prove to be a profitable period for electronics, sweets, greeting cards festivals prove to be a profitable period for electronics, sweets, greeting cards festivals prove to be a profitable period for electronics, sweets, greeting cards festivals prove to be a profitable period for electronics, sweets, greeting cards

and restaurant businesses. The business should plan and restaurant businesses. The business should plan and restaurant businesses. The business should plan and restaurant businesses. The business should plan itsitsitsits strategies according strategies according strategies according strategies according

to the traditions and social practices of a country.to the traditions and social practices of a country.to the traditions and social practices of a country.to the traditions and social practices of a country.

* :::: SociaSociaSociaSocial trends in a society are proportional to thel trends in a society are proportional to thel trends in a society are proportional to thel trends in a society are proportional to the demanddemanddemanddemand for the for the for the for the

product. The example of the social trend is health and fitness. The products product. The example of the social trend is health and fitness. The products product. The example of the social trend is health and fitness. The products product. The example of the social trend is health and fitness. The products

such as diet foods, diet drinks and fitness centres have given a new face to such as diet foods, diet drinks and fitness centres have given a new face to such as diet foods, diet drinks and fitness centres have given a new face to such as diet foods, diet drinks and fitness centres have given a new face to

thethethethe industryindustryindustryindustry of health and fitness.of health and fitness.of health and fitness.of health and fitness.

* :::: Values can be called as the standard society keeps about itself. Such Values can be called as the standard society keeps about itself. Such Values can be called as the standard society keeps about itself. Such Values can be called as the standard society keeps about itself. Such

as freedom, social justice and equal opportunities.as freedom, social justice and equal opportunities.as freedom, social justice and equal opportunities.as freedom, social justice and equal opportunities.

The legal environment includes the laws passed by the government as well as the The legal environment includes the laws passed by the government as well as the The legal environment includes the laws passed by the government as well as the The legal environment includes the laws passed by the government as well as the

decisions rendered by the vdecisions rendered by the vdecisions rendered by the vdecisions rendered by the various commissions andarious commissions andarious commissions andarious commissions and agenciesagenciesagenciesagencies at every level of the at every level of the at every level of the at every level of the

government. Itgovernment. Itgovernment. Itgovernment. It’’’’s important that every business must function according to the law s important that every business must function according to the law s important that every business must function according to the law s important that every business must function according to the law

of the area in which it wishes to operate.of the area in which it wishes to operate.of the area in which it wishes to operate.of the area in which it wishes to operate.

Not obeying the rules can result in legal trouble for the business. Not obeying the rules can result in legal trouble for the business. Not obeying the rules can result in legal trouble for the business. Not obeying the rules can result in legal trouble for the business. In India, business In India, business In India, business In India, business

firms are required to have complete knowledge of acts like Companies Act 1956, firms are required to have complete knowledge of acts like Companies Act 1956, firms are required to have complete knowledge of acts like Companies Act 1956, firms are required to have complete knowledge of acts like Companies Act 1956,

Consumer Protection Act 1986, Industrial Disputes Act 1947, and Competition Act Consumer Protection Act 1986, Industrial Disputes Act 1947, and Competition Act Consumer Protection Act 1986, Industrial Disputes Act 1947, and Competition Act Consumer Protection Act 1986, Industrial Disputes Act 1947, and Competition Act

2002 and 2002 and 2002 and 2002 and so on. For example, it is mandatory for tobacco companies to print ‘smoking so on. For example, it is mandatory for tobacco companies to print ‘smoking so on. For example, it is mandatory for tobacco companies to print ‘smoking so on. For example, it is mandatory for tobacco companies to print ‘smoking

is harmful’ on its products.is harmful’ on its products.is harmful’ on its products.is harmful’ on its products.

The primary forces that are responsible for the improvement in the scientific field The primary forces that are responsible for the improvement in the scientific field The primary forces that are responsible for the improvement in the scientific field The primary forces that are responsible for the improvement in the scientific field

and new innovations being and new innovations being and new innovations being and new innovations being introduced in the market for improving the quality of introduced in the market for improving the quality of introduced in the market for improving the quality of introduced in the market for improving the quality of

goods and services and techniques for operating business more efficiently are known goods and services and techniques for operating business more efficiently are known goods and services and techniques for operating business more efficiently are known goods and services and techniques for operating business more efficiently are known

as technological factors in the business environment.as technological factors in the business environment.as technological factors in the business environment.as technological factors in the business environment.

Just like two sides of the same coin, technological changes areJust like two sides of the same coin, technological changes areJust like two sides of the same coin, technological changes areJust like two sides of the same coin, technological changes are threats to some threats to some threats to some threats to some

organisations and opportunities for other. The introduction of Television was a major organisations and opportunities for other. The introduction of Television was a major organisations and opportunities for other. The introduction of Television was a major organisations and opportunities for other. The introduction of Television was a major

blow to the industry of Radio and Cinema industry. Mobile phones have snatched the blow to the industry of Radio and Cinema industry. Mobile phones have snatched the blow to the industry of Radio and Cinema industry. Mobile phones have snatched the blow to the industry of Radio and Cinema industry. Mobile phones have snatched the

market from Telephones.market from Telephones.market from Telephones.market from Telephones.

These days, the online food delivery businessThese days, the online food delivery businessThese days, the online food delivery businessThese days, the online food delivery businesses are emerging in the market which es are emerging in the market which es are emerging in the market which es are emerging in the market which

is using smartphone technology that is ‘Apps’ to order food online. This is a major is using smartphone technology that is ‘Apps’ to order food online. This is a major is using smartphone technology that is ‘Apps’ to order food online. This is a major is using smartphone technology that is ‘Apps’ to order food online. This is a major

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change in the food industry business and has affected the restaurant industry change in the food industry business and has affected the restaurant industry change in the food industry business and has affected the restaurant industry change in the food industry business and has affected the restaurant industry

tremendously.tremendously.tremendously.tremendously.

New innovations are occurring in medicine, New innovations are occurring in medicine, New innovations are occurring in medicine, New innovations are occurring in medicine, telecommunications and biotechnology. telecommunications and biotechnology. telecommunications and biotechnology. telecommunications and biotechnology.

Recent advancement in the markRecent advancement in the markRecent advancement in the markRecent advancement in the market of Autonomous cars exampleet of Autonomous cars exampleet of Autonomous cars exampleet of Autonomous cars example Driverless cars is Driverless cars is Driverless cars is Driverless cars is

proving to be a major threat to the business of selfproving to be a major threat to the business of selfproving to be a major threat to the business of selfproving to be a major threat to the business of self----driving car industry.driving car industry.driving car industry.driving car industry.

This factor consists of external factors This factor consists of external factors This factor consists of external factors This factor consists of external factors such as political stability and peace in the such as political stability and peace in the such as political stability and peace in the such as political stability and peace in the

country. The foresight of the ruling party and its perspective towards business. country. The foresight of the ruling party and its perspective towards business. country. The foresight of the ruling party and its perspective towards business. country. The foresight of the ruling party and its perspective towards business.

Needless to say, the political environment is easily the most important dimension of Needless to say, the political environment is easily the most important dimension of Needless to say, the political environment is easily the most important dimension of Needless to say, the political environment is easily the most important dimension of

the business environment.the business environment.the business environment.the business environment.

As it decides whatAs it decides whatAs it decides whatAs it decides what is the ideology of the party which is dominant in the country. is the ideology of the party which is dominant in the country. is the ideology of the party which is dominant in the country. is the ideology of the party which is dominant in the country.

For example, after globalisation India let foreign companies enter Indian market for For example, after globalisation India let foreign companies enter Indian market for For example, after globalisation India let foreign companies enter Indian market for For example, after globalisation India let foreign companies enter Indian market for

giving a boost to different industries such as the food processing industry, the giving a boost to different industries such as the food processing industry, the giving a boost to different industries such as the food processing industry, the giving a boost to different industries such as the food processing industry, the

technological industry.technological industry.technological industry.technological industry.

BBBBusinesses function with the nature and the framework of the political party. The usinesses function with the nature and the framework of the political party. The usinesses function with the nature and the framework of the political party. The usinesses function with the nature and the framework of the political party. The

components of a political environment consist of the constitution of the country, components of a political environment consist of the constitution of the country, components of a political environment consist of the constitution of the country, components of a political environment consist of the constitution of the country,

political stability, political ideology, political outlook on business sectors, the extent ofpolitical stability, political ideology, political outlook on business sectors, the extent ofpolitical stability, political ideology, political outlook on business sectors, the extent ofpolitical stability, political ideology, political outlook on business sectors, the extent of

government intervention and degree of politicisation of business and economic issues.government intervention and degree of politicisation of business and economic issues.government intervention and degree of politicisation of business and economic issues.government intervention and degree of politicisation of business and economic issues.

A consumer is the one who assumes to be treated like a King as they bring A consumer is the one who assumes to be treated like a King as they bring A consumer is the one who assumes to be treated like a King as they bring A consumer is the one who assumes to be treated like a King as they bring

business to the seller. Previouslybusiness to the seller. Previouslybusiness to the seller. Previouslybusiness to the seller. Previously “consumer was asked to “consumer was asked to “consumer was asked to “consumer was asked to beware”beware”beware”beware” but these days but these days but these days but these days

fingers have been pointed to sellerfingers have been pointed to sellerfingers have been pointed to sellerfingers have been pointed to seller “let seller be beware”“let seller be beware”“let seller be beware”“let seller be beware” as due as due as due as due to policies to policies to policies to policies

introduced, government laws, consumer protection, NGO and the increased introduced, government laws, consumer protection, NGO and the increased introduced, government laws, consumer protection, NGO and the increased introduced, government laws, consumer protection, NGO and the increased

competition in the market. competition in the market. competition in the market. competition in the market.

Consumer ProtectionConsumer ProtectionConsumer ProtectionConsumer Protection is a term given to a practice wherein we need to protect the is a term given to a practice wherein we need to protect the is a term given to a practice wherein we need to protect the is a term given to a practice wherein we need to protect the

consumer from the unfair practice, educating them about their consumer from the unfair practice, educating them about their consumer from the unfair practice, educating them about their consumer from the unfair practice, educating them about their rights and rights and rights and rights and

responsibilities and also redressing their grievances.responsibilities and also redressing their grievances.responsibilities and also redressing their grievances.responsibilities and also redressing their grievances.

Why do Consumers need to be Protected?Why do Consumers need to be Protected?Why do Consumers need to be Protected?Why do Consumers need to be Protected?

There are n number ofThere are n number ofThere are n number ofThere are n number of productsproductsproductsproducts in the market which are injurious to thein the market which are injurious to thein the market which are injurious to thein the market which are injurious to the healthhealthhealthhealth of of of of

the consumer, adulteration, false weights, monopoly and unfair the consumer, adulteration, false weights, monopoly and unfair the consumer, adulteration, false weights, monopoly and unfair the consumer, adulteration, false weights, monopoly and unfair trade practice are trade practice are trade practice are trade practice are

some of the issues that need to be tackled and are to be addressed to protect the some of the issues that need to be tackled and are to be addressed to protect the some of the issues that need to be tackled and are to be addressed to protect the some of the issues that need to be tackled and are to be addressed to protect the

consumer against it.consumer against it.consumer against it.consumer against it.

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