Question

Which of the following does not explain the impact of government policy changes on business and industry?

(a) More demanding customers

(b) Increasing competition

(c) Change in agricultural prices

(d) Market orientation

Answer 1

Among the options given above, change in agriculture prices does not explain the impact of government policy changes on business and industry. Government policy changes such as liberalisation, privatisation and globalisation affect the working of business organisations. More demanding customers, increasing competition and market orientation all explain the impact of such policy changes. On the other hand, change in agricultural prices is independent of the government policy changes and takes place due to change in the demand and supply of agricultural products.