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BUSINESS ENVIRONMENT 


Objective: to familiarize the students with the business environment conditions prevailing in
India and international and understand its implications to business.
Unit-I Business Environment: Components and Significance – Economic Scope – Cultural,
Political, Technological and External Factors Influencing Business Environment – Dimensions
of International Business Environment – Challenges.
Unit-II: Structure of Indian Economy ; Economic systems- Economic planning with special
reference to last three plans, public, private joint and cooperative sectors - Industrial Policy of
the Government - Policy Resolutions of 1956, 1991 Industrial Policy and Economic Policy -
Subsequent policy Statements
Unit-III Indian Companies - Competitiveness, Changes and Challenges, Sustainable
Development, Social Responsibilities, Ethics in Business- Competition Act 2002 - Emerging
Trend in Indian Business Environment.
Unit – IV: International Trade Theories, Balance of Payments – Concepts, Disequilibrium in
BOP: Methods of Correction - Trade Barriers and Trade Strategy - Free Trade vs. Protection -
World Financial Environment: Foreign Exchange Market Mechanism, Exchange Rate
Determination, and Euro Currency.
Unit – V: International business environment: Globalisation: International Economic
Integration, Country Evaluation and Selection, Foreign Market Entry Methods, International
Trading Blocks – Their Objectives; WTO Origin, Objectives, Organization Structure and
Functioning – WTO and India.