4. product
Both the physical and chemical aspects
of a product are affected by laws
seeking to protect consumers. Such
laws may prescribe standards for
purity, safety and performance.
5. price
Prices are also affected by taxes such
as sales tax, value added tax, import tax
and port tax.
7. promotion
• Prohibitions on advertising certain products
• Prohibitions on using certain words and
expressions
• Limitation on extent of promotional
expenditure
• Content and style of advertisement
• Other promotional elements
8.
For any business, the policies of govt can
have deciding implications
Licensing
Regulations
Formalities
taxes
9. Government should protect
and impose policies
Ownership extent restriction
Clear guidelines for investors
Encourage transfer of managerial
skills, intellectual property and
technology (licensing)
10.
A firm will favor investment over
exporting when transportation costs and
trade barriers are high
tariffs
13.
FDI should be allowed except
Atomic energy
Agriculture
Gambling
plantation
14. advantages
Increase in exports
Increase in tax revenues
Development of human capital
resources
Promotion of competition
Employment generation
BOP effect
A better accelerator for economic
development
15. Should…
Provide tax breaks to local investors
Subsidies
Restrict foreign investors into the sector
where you are good