Economic Reforms Slide Share for Students

1. Aijaz A. Rather

2.  Historical analogy method
 Econometric techniques
 Judgement models
 Survey methods
 Delphi method
 Brain Storming
 Business Barometer method

3.  ETOP or SWOT : A Technique of Diagnosis
 Opportunities: Favourable situation
 Threats: Unfavourable situation
 Strength-Comparative advantage
 Weakness-Limitation or deficiency
 QUEST :Quick environmental scanning technique

4. ECONOMIC REFORMS

5. Objectives or Need of Economic Reforms
 Increase in fiscal deficit
 Increase in adverse balance of payment
 Fall in Foreign Exchange Reserves
 Rise in Prices
 Poor performance of public sector undertakings

6. Main features of Economic
Reforms
OR
New Economic Policy
Economic Reforms or New Economic Policy
Liberalisation GlobalisationPrivatisation

7. LIBERALISATION
Measures Taken for Liberalisation
 Abolition of Industrial Licensing and Registration
 Concession from Monopolies Act
 Freedom for Expansion and Production to Indusries
 Increase in investment limit of Small industries
 Freedom to import capital goods
 Freedom to Import technology
 Free determination of Interest Rates

8. PRIVATISATION
Causes of Privatisation
 Disintegration of socialist Economies
 Inefficient Public Sector
 Uneconomic price policy
 Burden on the Government
Objectives of Privatisation
 To increase the efficiency and competitive power of
enterprise
 To reduce deficit financing and public deficit
 To earn more and more foreign currency
 To achieve rapid industrial development of the country

9. ADVANTAGES:
 Reduction in Economic Burden
 Increase in Efficiency
 Reduction in political interference
 Encouragement of New invention
DISADVANTAGES:
 Industrial sickness
 Lack of social welfare
 Increase in inequality
 Increase in unemployment
 Ignores weaker section

10. Measures Adopted For Privatisation
 Contraction of Public sector
 Disinvestment in Existing public sector industries
 Sale of shares of public entreprises
 Increase in private sector investment

11. GLOBALISATION
Features of Globalisation:
 The business expands throughout the world
 Goods and services are bought and sold from/to any
country in the world
 The difference b/w domestic and foreign markets
comes to an end
 Products are planned and developed keeping in mind
the markets of entire world
 Outsourcing of goods and services can be done

12. GLOBALISATION OF
MARKETS
GLOBALISATION OF
PRODUCTION
GLOBALISATION
OF TECHNOLOGY
GLOBALISATION
OF INVESTMENT
TYPES OF GLOBALISATION

13. GLOBALISATION OF MARKETS
 Integration and merger of the world into a single
market.
Features of Globalisation of Markets:
 The distinction b/w the domestic market and foreign
market still prevails
 Because of the above distinction it is necessary to
make different strategies for each market
 The global firms have to compete each other in
different markets including home market

14. Reasons for Globalization of
markets
 Companies opted for globalization to increase their
income and thus to maximize profits
 The shortage of products in a country pulled the
foreign countries to market their products in those
countries
 The adverse selling environment in the home country
pushed the manufacturers to sell their products in the
foreign markets
 Companies expand their business to other countries in
order to reduce risk.

15. GLOBALISATION OF PRODUCTION
Reasons for Globalisation of production
 Raw material for production is available in ample
quantity in foreign countries
 Skilled and unskilled labour is available in other
countries for production
 To produce the goods as per the requirements and
taste of customers of other countries
 Some countries impose restrictions on imports but
allow foreign companies to establish manufacturing
activities in the country

16. GLOBALISATION OF TECHNOLOGY
METHODS
 On the basis of royalty
 Technological collaboration
 Latest technology
GLOBALISATION OF INVESTMENT
REASONS
 MNCs invest in foreign countries to have control over
manufacturing and marketing activities
 The volume of global trade has increased and it needs
foreign money for further increase
 Certain countries impose the restriction of licensing
which is only issued to domestic companies. The
global companies enter these markets through FDI

17. Advantages of Globalisation
 Helps in free flow of capital from one country to another
 Helps in flow of technology from developed to developing
country
 Improves the standard of living
 Helps in spreading production facilities throughout the
world
 Increases employment opportunities in developing
countries
 Helps in reducing cultural differences in various parts of
the world

18. Disadvantages of Globalisation
 It vanishes the domestic business
 It causes decline in demand for domestic product
 It widens the gap between rich and poor
 The developed countries exploit the resources of the
developing countries

19. Aijaz A. Rather