Significance Flashcards
(39 cards)
significance
first mover advantage, early warning signal, customer focus, strategy formulation, image building, directing growth
Features of capitalism
private property, large scale production, profit institution, competition, price mechanism, wage institution, market economy
merits
high level of production, products of high quality at low costs, growth and prosperity, max welfar, opt utilisation of resources, flexible system
demerits
leads to monopoly, inequality, depression and unemployment, inefficient production, class conflict,
features of socialism
social ownership, social welfare, central planning, equality of income and opportunity, classless society
merits
greater economic efficiency, greater welfare due to less inequality, absence of monopoly
demerits
fixed occupation, bureaucratic, misallocation of resources
features of communism
highest class, communist party, rigid rules and regulation, no freedom of speech, government control prices for labour, government ownership
merits
people are equal every citizen can keep a job internally stable economics system no competition efficient distribution of resources
demerits
government rule no freedom of speech customer needs are not taken into consideration no balance between demand and supply
mixed economy feature
coexistents of public and private sectors individual freedom economic welfare economic planning price mechanism government intervention
merits
economic development optimum utilisation of resources balance between private and public sectors economic planning
demerits
non corporation between the two sectors in efficient public sector in efficient planning and the angels freedom
objectives of industrial policy
to correct imbalances to regulate flow of resource to ensure maximum utilisation of resources to monitor private industry to ensure equal wealth distribution to control foreign capital
importance
establishes coordination direct National resources helps in industrial development proper control promotes export
measures adopted in connection with liberalisation strategy
freedom of production extending investment limit of small industries exemption of industries from licensing expansion of industries
positive implications
growth of agriculture liberalisation and employment liberalisation and mergers liberalisation and economic growth improvement in healthcare
demerits
reduce profits exploitation of worker reduces economic freedom effect on capital
modes of privatisation
strategic sale sale to foreigners initial public offering equal access voucher program franchising leasing liquidation
positive
accelerates competitive sectors upliftment of under performing psus improves financial health better customer service
negative
high level of secrecy ignore social objectives loses the mission High employee turnover support to unfair practices rise in inflation
drivers of globalisation
increase and expansion of technology increased global competition expanded cross National corporation growing consumer pressures
industrial policy 1948
economic prosperity, attitudes towards foreign capital, exclusive monopoly
industrial policy 1956
accelerating the rate of growth of economy, preventing creation of monopolies developing a large and growing private sector expanding the village and small scale industries increasing the opportunities of employment
