BUSINESS ENVIRONMENT SEM-2 BBA

Section B
Ans-c:- A multinational corporation (MNC) has facilities and other assets in
at least one country other than its home country. A multinational company
generally has offices and/or factories in different countries and a
centralized head office where they coordinate global management. Some
of these companies, also known as international, stateless, or
transnational corporate organizations, may have budgets that exceed
those of some small countries. 
MERITS:-
1) Economic Development: 
2) Technology Gap
3)   Industrial Growth
4)  Marketing Opportunities
5) Work Culture
6)  Research and Development
7)   Export Promotion
Demerits:-

 Problem of Technology
 Political Interference:
 Self-Interest
 Outflow of foreign Exchange: 
 Exploitation:
 Investment:

ANS-D:- 5 Factors that Affect the Economic Growth of a Country

 Meaning of Economic Growth:
 Following are some of the important factors that affect the economic growth of
a country:
 (a) Human Resource:
 (b) Natural Resources:
 nvolves land, building, machinery, power,
(c) Capital Formation:
transportation, and medium of communication.
 (d) Technological Development: involves application of scientific
methods and production techniques. 
  (e) Social and Political Factors: involve customs, traditions, values
and beliefs

SECTION – C

ANS-A:-
The term business environment means “the aggregate of all the forces, factors and
institutions which are external to and beyond the control of an individual business enterprise
but which exercise a significant influence on the functioning and growth of individual
enterprises.”

Initially only external forces were considered as the business environment. But in modern
scenario, business policies and actions are affected by internal forces also.   Thus, the
integral elements of business environment include both the internal as well as the external
factors, as both have an impact on business.

Factors Affecting Business Environment

 Natural Resources. :- Business environment is affected by natural resources
available in country, including land, quality of soil, mineral wealth, water resources,
vegetation, formation of surface and climate.
 Human Resources. :- A country having human resources healthy, intelligent,
efficient trained and adequate then rapid economic development is possible.
Forms of Economic System. :- he forms of economic system also affect the
economic development environment.

The economic system has positive as well as negative impact both


 Economic Policies. ... :- Free economy system” Private entrepreneurs play active
role in development of economy.
 Technological Development. :- Technology changes fast and to keep pace with it,
Businessman should be ever alert to adopt change technology to their business.
 Capital Formation and Investment. ...
 Monetary and Fiscal Policies. ...
 Situations of Market.