Commerce Exam > Commerce Questions > In the year 1977, the change in political pow...
Start Learning for Free
In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?
- a)Economic factors
- b)Political factors
- c)Human factors
- d)Natural factors
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
In the year 1977, the change in political power in the country changed...
Factors responsible for the exit of MNCs in 1977:
1. Political factors:
- The change in political power in 1977 resulted in a shift in the country's policies towards multinational corporations (MNCs).
- The new government may have implemented regulations or policies that were unfavorable for MNCs, leading to their exit from the Indian market.
2. Economic factors:
- Changes in economic conditions, such as the introduction of new economic policies or shifts in taxation regulations, may have made it financially unviable for MNCs to continue operating in India.
- Economic instability or unfavorable market conditions could also have played a role in their decision to exit.
3. Human factors:
- The availability and quality of skilled labor, as well as the level of labor unrest or strikes, could have influenced MNCs' decisions to leave.
- Political or social unrest, including protests or demonstrations, may have created an unfavorable business environment, leading to their exit.
4. Natural factors:
- Natural disasters or extreme weather conditions could have disrupted supply chains or operations, making it difficult for MNCs to continue their business in the country.
- Environmental regulations or concerns may also have played a role in their decision to exit.
Overall, while economic factors and human factors could have contributed to the exit of MNCs, the primary reason for their departure in 1977 was the change in political power and the resulting shift in policies towards MNCs in India.
1. Political factors:
- The change in political power in 1977 resulted in a shift in the country's policies towards multinational corporations (MNCs).
- The new government may have implemented regulations or policies that were unfavorable for MNCs, leading to their exit from the Indian market.
2. Economic factors:
- Changes in economic conditions, such as the introduction of new economic policies or shifts in taxation regulations, may have made it financially unviable for MNCs to continue operating in India.
- Economic instability or unfavorable market conditions could also have played a role in their decision to exit.
3. Human factors:
- The availability and quality of skilled labor, as well as the level of labor unrest or strikes, could have influenced MNCs' decisions to leave.
- Political or social unrest, including protests or demonstrations, may have created an unfavorable business environment, leading to their exit.
4. Natural factors:
- Natural disasters or extreme weather conditions could have disrupted supply chains or operations, making it difficult for MNCs to continue their business in the country.
- Environmental regulations or concerns may also have played a role in their decision to exit.
Overall, while economic factors and human factors could have contributed to the exit of MNCs, the primary reason for their departure in 1977 was the change in political power and the resulting shift in policies towards MNCs in India.
Free Test
FREE
| Start Free Test |
Community Answer
In the year 1977, the change in political power in the country changed...
Political factors
In the year 1977, there was a change in political power in India, which led to a significant shift in the country's policies. This change in political power had a direct impact on the policies governing multinational corporations (MNCs) operating in India at that time. As a result, many international companies had to leave the Indian market.
Government Policies
The change in political power in 1977 brought about a shift in the government's economic policies. The new political party that came into power implemented policies that were more focused on protecting domestic industries and promoting self-reliance. This change in policy had a direct impact on MNCs operating in India.
Protectionism
The new government, driven by a desire to protect domestic industries, introduced policies that favored indigenous companies over multinational corporations. This protectionist approach included measures such as higher tariffs on imported goods, restrictions on foreign exchange, and increased regulations for foreign companies operating in India. These policies made it difficult for MNCs to operate profitably in the country, leading to their exit from the Indian market.
Uncertainty and Instability
The change in political power and the subsequent shift in policies created an environment of uncertainty and instability for multinational corporations. The sudden policy changes and the lack of a consistent and favorable business environment made it difficult for MNCs to plan and operate effectively. This uncertainty and instability further contributed to their decision to exit the Indian market.
Conclusion
In conclusion, the change in political power in 1977 in India had a significant impact on the policies governing multinational corporations. The new government's focus on protectionism and the implementation of policies that favored domestic industries over foreign companies led to the exit of many international companies from the Indian market. The uncertainty and instability created by the change in policies further contributed to their decision to leave. Therefore, the correct answer to the question is option 'B' - Political factors.
In the year 1977, there was a change in political power in India, which led to a significant shift in the country's policies. This change in political power had a direct impact on the policies governing multinational corporations (MNCs) operating in India at that time. As a result, many international companies had to leave the Indian market.
Government Policies
The change in political power in 1977 brought about a shift in the government's economic policies. The new political party that came into power implemented policies that were more focused on protecting domestic industries and promoting self-reliance. This change in policy had a direct impact on MNCs operating in India.
Protectionism
The new government, driven by a desire to protect domestic industries, introduced policies that favored indigenous companies over multinational corporations. This protectionist approach included measures such as higher tariffs on imported goods, restrictions on foreign exchange, and increased regulations for foreign companies operating in India. These policies made it difficult for MNCs to operate profitably in the country, leading to their exit from the Indian market.
Uncertainty and Instability
The change in political power and the subsequent shift in policies created an environment of uncertainty and instability for multinational corporations. The sudden policy changes and the lack of a consistent and favorable business environment made it difficult for MNCs to plan and operate effectively. This uncertainty and instability further contributed to their decision to exit the Indian market.
Conclusion
In conclusion, the change in political power in 1977 in India had a significant impact on the policies governing multinational corporations. The new government's focus on protectionism and the implementation of policies that favored domestic industries over foreign companies led to the exit of many international companies from the Indian market. The uncertainty and instability created by the change in policies further contributed to their decision to leave. Therefore, the correct answer to the question is option 'B' - Political factors.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer?
Question Description
In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer?.
In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer?.
Solutions for In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In the year 1977, the change in political power in the country changed the policy for MNCs in the country. Due to this many International Companies had to leave the Indian market in the year1977. Which of the following factor is responsible for the exit of MNCs?a)Economic factorsb)Political factorsc)Human factorsd)Natural factorsCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup