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Presented in the class of: Presented in the class of:
Dr.Ashish Pareek Dr.Ashish Pareek
Submitted by: Submitted by:
Akhilesh Neena Akhilesh Neena
Brijesh Patodia Brijesh Patodia
Lokendra Lokendra
Priya Sharma Priya Sharma
Ritu Khotari Ritu Khotari
Teena Saini Teena Saini
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introduction
Reasons for implementing LPC
Liberalization
Privatization
Clobalization
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Introduction Introduction
!uly 1991lndla has Laken a serles of measures Lo sLrucLure Lhe
economy and lmprove Lhe 8C poslLlon 1he new economlc
pollcy lnLroduced changes ln several areas
1he pollcy have sallenL feaLure whlch are
1LlberllsaLlon (lnLernal and exLernal)
2LxLendlng rlvaLlzaLlon
3CloballsaLlon of Lhe economy
Whlch are known as 9#libearlisation privatisation
globalisation)
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Reusons for impIementing LPS Reusons for impIementing LPS
Lxcess of consumpLlon and expendlLure over revenue
resulLlng ln heavy govL borrowlngs
Crowlng lnefflclency on Lhe use of resources
Cver proLecLlon Lo lndusLrles
MlsmanagemenL of Lhe flrm and Lhe economy
lncrease ln losses for publlc secLor enLerprlses
varlous dlsLorLlon llke poor Lechnologlcal developmenL
shorLage of forelgn exchange and borrowlng from abroad
Low forelgn exchange reserves
lnflaLlon
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LiberuIizution LiberuIizution
Liberalization is a very broad term that usually refers to
fewer government regulations and restrictions in the
economy in exchange for greater participation of
private entities
Liberalization refers to the relaxation of the previous
government restriction usually in area of social and
economic policies. When government liberalized
trade , it means it has removed the tariff ,subsidies
and other restriction on the flow of goods and
services between the countries.

%e Put of IiberuIizution %e Put of IiberuIizution

W Relief for foreign investors
W Devaluation of !ndian rupees
W New industrial Policy
W New trade policy
W Removal of import Restrictions
W Liberalization of NR! remittances
W Freedom to import technology
W Encouraging foreign tieups
W NRTP relaxation
W Privatization of public sector

dvuntuges of IiberuIizution dvuntuges of IiberuIizution

W !ndustrial licensing
W !ncrease the foreign investment.
W !ncrease the foreign exchange reserve.
W !ncrease in consumption and Control over price.
W Check on corruption.
W Reduction in dependence on external commercial
borrowings

isudvuntuges of LiberuIizution isudvuntuges of LiberuIizution

W !ncrease in unemployment.
W Loss to domestic units.
W !ncrease dependence on foreign nations
W Unbalanced development

umpIes umpIes
Nameerpr|ses S|a|
1naLlonal 1hermal ower CorporaLlon roflL
2lndlan Cll CorporaLlon roflL
3Mananegar 1elephone nlgam LlmlLed roflL
4SLeel AuLhorlLy lndla LlmlLed roflL
8haraL eLroleum CorporaLlon LlmlLed roflL
PlndusLhan eLroleum CorporaLlon LlmlLed roflL
8haraL Peavy LlecLronlcs LlmlLed roflL
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Privutizution Privutizution
Privatization means transfer of ownership and/or management of
an enterprise from the public sector to the private sector .!t also
means the withdrawal of the state from an industry or sector
partially or fully.
Privatization is opening up of an industry that has been reserved
for public sector to the private sector.
Privatization means replacing government monopolies with the
competitive pressures of the marketplace to encourage
efficiency, quality and innovation in the delivery of goods and
services.
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ifferent Wuys in privutizution ifferent Wuys in privutizution
W LlberallzaLlon Approach
W 8elaLlve Share LnlargemenL Approach
W AssoclaLlon of rlvaLe SecLor ManagemenL
Approach
W 1ransfer of MlnorlLy LqulLy Cwnershlp
Approach
W 1ransfer of CompleLe Cwnershlp Approach
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dvuntuges of Privutizution dvuntuges of Privutizution
W rlvaLlzaLlon helps Lo reduce Lhe burden on CovL
W lL wlll help proflL maklng publlc secLor unlL Lo modernlze and
dlverslfy Lhelr buslness
W lL wlll help ln maklng publlc secLor unlL more compeLlLlve
W lL wlll help Lo lmprovlng Lhe quallLy of declslon maklng because
Lhe declslons are free from any pollLlcal lnLerference
W rlvaLlzaLlon may help ln revlvlng slck unlLs whlch are Lhe llablllLy
of Lhe publlc secLor
W lL Lncourage Lhe new lnnovaLlons wlLhouL any resLrlcLlons
W lndusLrlal growLh
W lncrease Lhe forelgn lnvesLmenL
W lncrease ln efflclency
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isudvuntuges of Privutizution isudvuntuges of Privutizution
W !ndustrial sickness.
W Lack of welfare.
W Class struggle.
W !ncrease in inequality
W Opposition by employees.
W Problem of financing.
W !ncrease in unemployment.
W !gnores the weaker sections.
W !gnores the national importance
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umpIes of privutizution in Indiu umpIes of privutizution in Indiu
W Lagan !uLe Machlnery Company LlmlLed
(L!MC)
W vldesh Sanchar nlgam LlmlLed (vSnL)
W PlndusLan Zlnc LlmlLed (PZL)
W PoLel CorporaLlon LlmlLed of lndla (PCL)
W 8haraL Alumlnum Company llmlLed
(8ALCC)
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SIobuIizution SIobuIizution
Clobalization implies integration of the economy of the country
with the rest of the world economy and opening up of the
economy for foreign direct investment by liberalizing the
rules and regulations and by creating favorable socio
economic and political climate for global business.
According to !NF: "The growing economic interdependence of
countries worldwide through increasing volume and variety
of cross border transaction in goods and services and of
international capital cash flows, and through the more rapid
and widespread diffusion of technology."
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eutures of SIobuIizution eutures of SIobuIizution
W Opening and planning to expand business throughout the world.
W Erasing the difference between domestic market and foreign market.
W Buying and selling goods and services from/to any countries in the
world.
W Locating the production and other physical facilities on a consideration
of the global business dynamics ,irrespective of national consideration.
W Basing product development and production planning on the global
market consideration.
W Clobal sourcing of factor of production i.e. rawmaterial,
components,machinery,technology,finance etc. are obtained from the
best source anywhere in the world.
W Clobal orientation of organizational structure .and management culture
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oreign murket entry strutegies oreign murket entry strutegies
Exporting
Licensing/Franchising
Contract manufacturing
Nanagement contract
Assembly operations
Fully owned manufacturing facilities
]oint venturing
Nerger and acquisition
Strategic alliance
Countertrade
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Pros und ons of SIobuIisution Pros und ons of SIobuIisution
Clobalization have several benefits ,these are:
Free flow of capital and increase in the total capital employed.
Free flow of technology.
!ncrease in industrialization.
Spread of production facilities throughout the globe.
Balanced development of world economies.
!ncrease in production and consumption.
Commodities at lower price with high quality.
!ncrease in jobs and income.
Higher Standard of living.
Balanced human development
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Megofive effecfs of 0IoboIi;ofion
W Loss of domestic industries
W Exploits Human resource
W Decline in income
W Unemployment
W Transfer of natural resources
W Lead to commercial and political colonism
W Widening gap between rich and poor
W Dominance of foreign institutions
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References References

AswaLhappa "LssenLlals of 8uslness LnvlronmenL"

!usLln aul "8uslness LnvlronmenL"
l Cherunlllam "8uslness and CovernmenL"
Shalkh saleem "8uslness LnvlronmenL"
-@-@
Wlklpedla
8uslnesschakracom
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