COMMERCE TREASURE

CHANGING ROLE OF PUBLIC SECTOR At the time of Independence, it was expected that the public sector enterprises would play an important role in achieving certain objectives of the economy either by direct participation in business or by acting as a catalyst.  The public sector would build up infrastructure for other sectors of the economy and invest in key areas.  The private sector was unwilling to invest in projects which required heavy investment and had long gestation periods.  The government then took it upon itself to develop infrastructural facilities and provide for goods and services essential for the economy. The Indian economy is in a stage of transition. The Five Year Plans in the initial stages of development gave lot of importance to the public sector.  In the post-1990s, the new economic policies, emphasised on liberalisation, privatisation and globalisation. Therole of public sector was redefined.  It was not supposed to play a passive role but to actively pa

GLOBAL ENTERPRISES At some time you must have come across products produced by Multi National Corporations (MNCs).  In the last 2 decades or so. MNCs have played an important role in the Indian economy.  They have become a common feature of most developing economies in the world.  MNCs as is evident from what we see around us, are gigantic corporations which have their operations in a number of countries.  They are characterised by their huge size, large number of products, advanced technology, marketing strategies and network of operations all over the world.  Global enterprises thus are huge industrial organisations which extend their industrial and marketing operations through a network of their branches in several countries. These enterprises operate in several areas producing multiple products with their business strategy extending over a number of countries.  They do not aim at maximising profits from one or two products but instead spread their branches all over. Fea