Unit-6 External Influences on Business Activity

  Unit 6.1 ECONOMIC ISSUES How government controls over the economy affect the business activity? ECONOMIC OBJECTIVES OF GOVERNMENT (Oct/Nov-2019 Q.No.1b) (May/June 2021 Q.No-4b) 1. Positive Balance of payments             The difference between the value of exports and imports of a country is called balance of payments. Governments try to achieve a surplus balance of payment by increasing exports and reducing imports. A deficit balance of payment may occur, 1. If the country imports more than the exports. 2. Due to exchange rate depreciation. 3. Poor industry and lower production 4. Inadequate utilization of resources in the country. 2. Reduce unemployment:            ...

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