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IGNOU ASSIGNMENT GURU (2018-2019)
E.C.O.-13
Business Environment
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Q. 1. What is meant by social responsibilities of business? Describe various views in favour of and
against social responsibilities of business.
Ans. Corporate Social Responsibility (CSR) is a form of corporate self-regulation integrated into a business
model, which defines the responsibility of business organisation and corporates towards society. It is also called
corporate responsibility, responsible business, Sustainable Responsible Business (SRB), corporate citizenship or
corporate social performance.
It enables business to monitor and ensure adherence to ethical standards, laws and international norms. Business
must embrace and understand the impact of their activities on the consumers, employees, environment, communities
and all other stakeholders at large.
It is reasoned that business activities involve use of country resources, and hence these bear a responsibility to
use to resources in benefit of the society.
At the times when there existed the traditional market, the sole concern of business was for making profit by
expanding the business operations. However, everything changed with times. People realised that the markets have
half the value if there is no social development. They realised the fact that the business cannot grow without a holistic
socio-economic growth. It was at this time when the corporate enterprises started implementing the plans that could
spell growth and development of the society as well.
This idea emerged as the outcome of the expectations of public. According to the public, the business units should
modify their pursuit of attaining the economic goals. They should also help the society in redressing the social
problems, as per the expectations.
The business organisations presently have many obligations for adopting new policies and for making their plans
of actions. These actions go in hand with the expectations and also in the interest of the society. Therefore, there are
many organisations, which have started taking the social criterion along with the economic criterion in carrying out
their business activities.
Although these social responsibilities of business are not helping the business units directly, however, they can
definitely help in the betterment of the social resources that again in the end could spell well for the business organisations.
They realised the significance of power responsibility equation. It was the act of balancing of responsibility with
power as an essential requirement in society for securing public good. It was adjudged that even the corporate
enterprises can use their power in developing society which can affect the environment, and can make the consum-
ers and the community more aware to know about their rights. Now-a-days, there is a very accepted fact that
business is an integral part of the society and of the social system.

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Corporate Social Responsibility thus, refer to obligation of business organisations to adopt business policies and
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lines of action which are socially desirable. Classical economists held a contrary view to social responsibilities of
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business concerns.
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Business must voluntarily refrain from practices which are not in the interest of the community or cause environ-
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mental deterioration. Businesses must consider public and environmental interests in decision-making and honor the
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Triple Bottom Line (TBL) - people, planet and profit. Thought there are not set standards for CSR, adherence to TBL
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is widely accepted.
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Views against Social Responsibilities of Business
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It is argued that CSR distracts business from their fundamental role of businesses. It is also argued that CSR is
merely window-dressing and an attempt to forestall the role of governments as a watchdog over powerful multina-
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tional corporations.
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There are many arguments against social responsibilities of business. Some of these are:
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owners resources for social cause and
benefits. These resources must be best used in the interests of the organisation.
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ers. At times, it might lead to increased public control over the organisation.
3. Invest in social cause and interest, would mean reduction in investment in productive/economic activities to
same extend. Even where companies have adequate resources to engage in social cause, a proportionate
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large scale commitment would slower the gross national product.
Cases for Social Responsibilities of Business
If business is seen as an integral part of society, and business values are questioned in social context rather than
narrow
Instagrameconomic framework, the concept of coorporate social responsibility is justified:
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1. Business is both a social and an economic activity. Thus, business people must realise that they are respon-
sible for their actions not just economically, but socially as well.
2. Market and social system can be satisfactory arbiter of business activities and their consequences. Eco-
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consideration are not isolated from social values.
3. With the significant growth of an organisation, there is growing interest of public in the actions and policies of
the organisations. Thus, these enterprises should trace the public demands and work for their fulfillment as it
Youtubewould determine its image. It should it fulfill the need of owners, community, consumers and public that is
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crucial for its survival and for its growth.
4. The social issues for an organisation are a part of the moral realm and are not at all peripheral issue. As the
economic and social obligations of an organisation go hand in hand, they also define the formation of human
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5. The society is not at all judged with the parameters of economic efficiencies. It is also adjudged by the social
efficiencies so the organisations should pay attention to social issues One can derive the benefits of social
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that remains parallel to the GNP.
6. The good growth of society and the redressal of social needs would eventually help in making a sophisticated
society that indirectly would help the business organisation as it will be a favourable market for them to sell
their products, services etc.
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Q. 2. How does the government implement its regulatory role in business? What are its objectives?
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Ans. Regulatory Role: Regulatory role of government involves regulation of various business and economic
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activities by directing the businesses with set of controls. These regulations aim to prevent concentration of power in
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few hands, localisation of business in few areas. These also aim at intervening and settling disputes between
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management and workers.
J3/ These controls include general norms and standards as set by the government like ceilings on dividends, public
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utility profits, imposition of duties and other taxes.
Objective of Regulatory Functions of Government
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By regulating the business, the government aims at:
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slZyRchqD75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/
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1. Developing small scale industries and promote entrepreneurship.
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2. Prevent monopolistic activities.
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3. Promote interests of the weaker sections of society.
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Thus, regulation aims to align business activities and processes with social justice.
bMg/ There are two important practical aspects of government regulations:
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1. First regulation should not be excessive
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2. Secondly, regulation should be done efficiently.
Government regulation can be direct or indirect:
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Direct Regulations: Direct controls are drastic and discretionary measures taken by the government which
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affect the firm/industry at micro-level. Such measures are necessary to control the activities of business which are
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at times imperfect in terms. For example, industrial licensing system was introduced by the government based on the
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rationale that in free market resources are not fairly allocated and hence must be regulated.
Indirect
Don’t Copy Regulations: These regulations +919811854308
www.ignouassignmentguru.com are made at macro-level www.assignmentguru.co.in
and can be in form of monetary incentives,
duties, penalties, rewards, grants, bail; etc which indirectly affect the interests of industry. For example, to promote
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ASSIGNMENTS IGNOU assignments
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Industrial Development and Regulation Act , 1951: The government of India
Study material Assignment SOLUTIONS GUIDE All Subjects (July January ) free and Paid solved assignmentintroduced the process of
registration and licensing to ensure the smooth functioning of industries in India. Within the series of law, it introduced
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(Development and Regulation) Act, 1951 aiming for a thorough and planned industrial development that
included regulation, control and development of industries via registration and licensing. It was declared that licensing
comes as a must for establishing a new undertaking and also for manufacturing new article. Licensing was also
G+ required for the substantial expansion; however, small scale industries or ancillary units come to be an exception.
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Even the projects situated in backward zones that carried an investment of Rs. 25 crore were kept apart from the
process of licensing.
Industrial Licensing System: It is clearly defined under Section 10 that each industry needs to register itself
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before starting its operation. Thereafter, this industry is issued a certificate of registration displaying its industrial
capacity. If owner starts operation without registration, he can be imprisoned for 6 months or can be fined with Rs
5000. However, registration is not necessary if the undertaking is small scale industry.
TwitterLicensing
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was also required for the substantial expansion; however, small scale industries or ancillary units come
to be an exception. Even the projects situated in backward zones that carried an investment of Rs. 25 crore were
kept apart from the process of licensing.
Licensing is must for:
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1. Forming new industrial entities: The six industries that still require licensing are:
(i) Distillation and brewing of alcoholic dealings.
(ii) Cigars and cigarettes and tobacco manufacturers.
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Electronic aerospace and defence manufacturing.
(iv) The industrial explosives, such as safety fuses, etc.
(v) Hazardous chemicals.
(vi) Drugs and pharmaceuticals.
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2. Starting up a new article in manufacturing is present licensed industrial undertaking.
3. Licence required in case of substantial expansion of licensed undertaking.
4. Or when a registrable entity has not yet been registered.
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5. Changing the location of registered industrial undertaking.
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6. If the registration has been revoked, the business cannot be carried after its revocation.
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However, the licensing is not mandatory, if the industries does not fall under the purview of the six licensed units
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or if the manufacturer wants to carry out the manufacturing in a factory that does not fall under definition factory
under Section 3.
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It is also not required when the item of manufacture fails does not fall within the definition of new article or if the
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proposed expansion is not a part of substantial expansion as defined, if the projects with assets of Rs.25 crore are
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located in non-backward areas while up to Rs. 75 crore are located in centrally backward areas. And finally they are
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exempted from licensing if they are located under certain location limit.
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IK6FYaPiGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD5slZyRchqD
75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/d2XgLqVYjnXMI5ojeZA+j1a50MT8PIWVtLvF95Bq
Incase of the new project of manufacturer of articles that remain uncovered by compulsory licensing, the
industrial undertaking can file a memorandum called industrial entrepreneur memorandum (IEM) in a scheduled
form to the secretariat for Industrial Approvals (SIA) in the ministry of Industry. Even the industries in non-scheduled
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categories file such memorandum.
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Control over Capital Issue: Earlier to SEBI, the market governing law was the Capital Issues Control Act,
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1956 that was regulating the primary market. There was Securities Contracts Regulation Act to regulate the secondary
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market.
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However, keeping in interest to the investors’ security, SEBI was floated in April 1998. Even the Capital Issues
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Control Act has been released and the Companies Act amended for making SEBI the administrative authority to
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regulate capital issues. Even the government transferred the power to SEBI under SCR Act for regulating the stock
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market. Thus SEBI was delegated with the task of adopting suitable measures to protect investors’ interests in
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securities.
Price
Don’t Copy Control: The government regulates
www.ignouassignmentguru.com the prices of variouswww.assignmentguru.co.in
+919811854308 commodities in the market to protect the
interests of common man.
IGNOU SOLVED
DistributionASSIGNMENT
Mechanism:GURUTheBCA MCA BA MA
Government BDP B.COM
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ASSIGNMENTS
essential commodities in the market. The Public Distribution System (PDS) ensures timely and adequate supply of Study
IGNOU assignments (PDF | Print) with Easy Proper solution for IGNOU students Online IGNOU free
material Assignment
essential SOLUTIONS
commodities GUIDE All Subjects (July January ) free and Paid solved assignment
in the market.
Securities Contract (Regulation) Act, 1956: The Act regulates capital markets, national and local stock
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exchanges, OTCEI, various issues of the companies, including securities (debt and equity).
Foreign Exchange Regulation Act (FERA), 1973: The Foreign Exchange Management Bill was placed in
parliament in July 1998, to replace FERA. The Act aims at effective management of foreign exchange in the
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country. The act provides for authorised dealings in foreign exchange and has provisions for penalties, contraventions
and adjudication procedures to regulate foreign exchange transactions.
Foreign Trade (Development and Regulation) Act, 1992
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main provisions of Foreign Trade (Development and Regulation) Act , 1992 are outlined below:
l It empowers the Central government to formulate and implement policies related to country’s imports and
exports.
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l Under the provisions of the act, the Central government must take necessary steps for development and
regulation of foreign trade. It can work to promote or restrict import-export of certain goods.
l The act provides for allotment and cancellation of importer-exporter code numbers and licenses.
Goods meant for export can be inspected, and if found inappropriate or sub-standard, such goods and associated
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documents can be confiscated and penalised.
l Any order made under the act can be appealed and revised.
Monopolistic and Restrictive Trade Practices Act, 1969: The MRTP Act, 1969 came up to ensure that
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there is no concentration of economic power at a single place. Besides it also checked the restrictive, monopolistic
and restrictive trade practices. The main body to monitor this act is MRTP Commission that has right to inquire into
any complaint that is related to monopolistic trade practice and is also having right for recommending any concrete
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for making any action to the central government. The MRTP is the only body that has the right to inquire, cease
or award compensation in case there are some restrictive and unfair trade practices being practised.
Regulation and Promotion of Foreign Trade: The Export Import Policy aims at regulating country's foreign
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trade. Most of the provisions of the policy are implemented by the regulatory framework provided by Foreign Trade
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(Development and Regulation) Act, 1992.
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Regulation of Companies: The Companies Act, 1956 are related to the formation and promotion of company,
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defining of capital structure of companies, arranging company meetings and procedures, making presentations of
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company’s accounts, its audits etc, for inspecting and investigating the affair of the company and the constitution of
board of directors and lastly for the administering of company law.
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Industrial Policy: The government announced industrial policies in 1948, 1956, 1973, 1977, 1980, 1990, and
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1991 giving stress on development of various sectors of economies.
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4NmNA50tP31TrS6jq2MWjUonVVEfs7ak7UImNQMF31lb4WqKQ5ine5yXDgfxd+D5heMPLYvNslMgnOQjkjBexfPJ+66JCWdjOl
Page No. 5
VHhz2oXIkz78kIMwGMHFMv5k5WJhL89laMOMrapHYFJdPQ7pkiIZPqh10tFTxnLDqsGEnwUDyVFlMRfi5ddjarL3yL7vvIK6FYaP
iGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD5slZyRchqD75kkdcJQhf
ZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/d2XgLqVYjnXMI5ojeZA+j1a50MT8PIWVtLvF95Bq
IPR 1948 This was the first industrial policy, in which the government emphasised the role of small scale
sector (SSS) in overall economic development.
m3RMlXLcb6AQ6/
IPR 1956 In this role of SSS was reemphasised. The policy drew attention towards the fact that sector
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provides immediate large scale employment, besides helping in mobilisation of local capital and
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skills and helps in equal distribution of income.
bMg/ Under the policy SSS was kept outside purview of industrial licensing system.
qH1IVy5GzCDAZs+G9e705dORo8lVQNKzJZJEfZ7G57A+YMjH+VrXQSC98FOh+vsMrstoaVwcACDsYHBIhz5q1hwOCSPMFpl
The policy emphasized need for technical up-gradation and modernisation of small scale units.
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IPR 1977 The number of items reserved for SSS was considerably increased.
JU9e5o5VJ/Kw/ The responsibility for industrial units was transferred to respective state governments.
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IPR 1980 Laid guidelines for strengthening the existing facilities for SSS.
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IPR 1991 A separate policy for SSI was announced by the government. (Before IPR 1991, polices for small
yYBv7mOD+y0o= scale sector formed a part of general industrial policy).
IPR1991 Emphasised the development of Small scale industries.
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Labour Affairs: The government has passed several legislations to safeguard the interests of workers. Some of
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ASSIGNMENTS
l IGNOUWages
Minimum assignments
Act, 1948(PDF | Print) with Easy Proper solution for IGNOU students Online IGNOU free Study
materiall Assignment SOLUTIONS
Factories Act, 1948 GUIDE All Subjects (July January ) free and Paid solved assignment
l Payment of Wages Act, 1936
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l Payment of Bonus Act, 1965
l Equal Remuneration Act, 1976
l Employees’ State Insurance Act, 1948
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l Employee Deposit Linked Insurance Scheme, 1976
l Employees Provident Funds and Miscellaneous Act, 1952
l Industrial Dispute Act, 1947
l Employees’ Pension Scheme, 1995
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l The payment of Gratuity Act, 1972
l The Industrial Employment (Standing Orders) Act, 1946
l Trade Union Act, 1926.
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Acts: Commercial acts aim to regulate the operational aspects of trade and business. These
include:
Sales of Goods Act 1930: Sales of Goods Act, 1930 includes provision related to contracts of movable property.
It was earlier a part of Indian Contract Act. However, later on, it was repealed and reenacted as separate legislation
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in 1930.
Indian Contract Act: This law of contracts is embodied in the India Contract Act, 1872 dealing with general
principles related to the formation of contract.
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we know that business transactions are based on contracts, there are certain agreements that can be enforced
in law’s court. The law of contracts is a part of such dealings.
Negotiation Instruments Act: This Act defines a cheque as a bill of exchange that can be drawn on a
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specified banker and is payable only on demand. The act also defines the inland and foreign bills, ambiguous and
inchoate instruments, instruments payable in demand, holder in due course etc. There are certain negotiable instruments
including bills of exchanges, cheques, promissory note etc that are used in business transactions and are not transferable
by endorsement, however, the holder acquired the valid title even if the previous holder’s title is defective.
FYCk+vR0Iq1AAI9Ao6O4zp1IJNXcge4ucpLdTP3F8pQe9wlume0zhsOl/
Arbitration Act: This encodes the principles of law applicable to all kinds of arbitration made with or without
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intervention of court.
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Indian Partnership Act: Under his act, the partners are defined as relations between two or more persons who
yGbPnR3tnTAwPlknkcGExJtFxdbfz+oo/
have agreed to share the profits of business carried for all. The partners are called as firm and they are running the
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business under a firm name. This Act specifies the rights and duties of partners. This was also a part of Indian
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contract Act till 1932, however, later on; it was reenacted as an Indian partnership Act.
ByYUYbN3Q/YY9qCtndtchA41393uUZQ/
Miscellaneous Regulatory Enactments: There are other enactments which touch all aspects of business.
Some of these are:
po8D9iwMYuXcoqCpNpmorw2RS9WGubAA4vCzDss8VppU5FPcJsvX9PWaj4bYmZurcWHSle+SWXA/pVosVI/
RVGkbfX6va3RXOnaCOVs9Ztc0ntNfXN7J5AYmRlaUFsPbg+rm+R+aXtA7HkLrr/
Page No. 6
4NmNA50tP31TrS6jq2MWjUonVVEfs7ak7UImNQMF31lb4WqKQ5ine5yXDgfxd+D5heMPLYvNslMgnOQjkjBexfPJ+66JCW
djOlVHhz2oXIkz78kIMwGMHFMv5k5WJhL89laMOMrapHYFJdPQ7pkiIZPqh10tFTxnLDqsGEnwUDyVFlMRfi5ddjarL3yL7vvI
K6FYaPiGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD5slZyRchqD7
5kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/d2XgLqVYjnXMI5ojeZA+j1a50MT8PIWVtLvF95Bq
l Banking Act
m3RMlXLcb6AQ6/
l Essential Commodities Act: The Essential Commodities Act, 1955 promises to protect the general public
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interest for controlling production and ensures the smooth supply and distribution of trade and commerce in
LLDPagSbXV9NhmghQRmzLx/tr/cFHIQAxqhYH/uEz6/6790kpG+6p5kpGpLyFaFKwXOzaRL953tITJtAk0UPhG15/
essential commodities. Presently, this act is applicable to 18 commodities. Under this act, central government
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has the power to regulate production of essential commodities, to bring under cultivation any waste land and
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to regulate control price etc.
plRGloFi8mMz3XTrMp9zXgJWyJgHQ3MXETjqk1/j6bb0X3EGKSnRVFU4z5YJran2LGjYEf1/
l Standardised Weights and Measures Act, 1956.
olv2HlC6KIGbozU13kvcw2irisSDLf/JU9e5o5VJ/Kw/
l Agriculture Products (Grading and Marking) Act, 1959.
PGCgRglgR5dXNJOFiF+O9FmgjPzr6ZpQIb08cT4eRQ5fwYumSGmj9kZPfW+RGlQQb9yrSSS0u6CSkK61Mlt9vrmm2j42tyt
l Trade and Commercial Commodities Marketing Act, 1959.
LaorZEFbaCb4CmVyKlm0NoSKpdIMARK0L18Z0DHVOnlTuBvm9qCNwXLaA1ln2aULHOzrb4kNPtmGSUw9vlptJ2QESDm
Q. 3. Explain the concept of workers’ participation in management. Discuss its different schemes.
Ans. Worker’s Participation in Management (WPM) refers to mechanism which allows increased participation
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of workers in decision making process of an enterprise. To enable this workers must be treated as partners in
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business. www.assignmentguru.co.in
Scope and degree of worker’s participation depends on three constituents of industrial relations system.
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1. Employees
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This way Workers Participation Management works in three directions for mutual benefit of employees, employers
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and the government.
1. It gives employees a sense of job-security, motivates them with better bonuses and wages.
2. It helps employers in retaining talent and increase profits by maximizing productivity.
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3. Government expects overall increase in productivity and healthy industrial relation via WPM mechanism.
Schemes of WPM in India
There are three major schemes of worker participation in India.
(i) Works
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(ii) Joint Management Councils (JMC)
(iii) Shop Councils
(iv) Joint Councils
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Committees: It was in 1931when the Royal Commission on Labour emphasized the significance of the
importance of works committee. This was recognized in the Industrial Trade Resolution in 1947.
In the Industries Disputes Act, 1947, this recommendation was given recognition where works committees were
allowed to
Youtube be set where there were over 100 workers. Further, there were equal number of employees and employers
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and even their functions were clearly chalked.
The objective behind setting up of worker committees are.
(i) Adopt measures to maintain peaceful and healthy relationships between employees and employers
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(ii) Work on matters of common interest between employees and employers
Some of the important aspects of works committees are.
(i) These committees have equal number of representatives from employer and employee group
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id There
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are no bindings on the members of the committees
The working of works committees has been not satisfactory because of the following reasons.
(i) Scope and functions of the committee are not clearly defined.
(ii) Often there are conflicts between representatives of the committee.
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(iii) Trade unions operating in enterprise do not provide adequate support to the work committees.
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Joint Management Councils (JMC): An idea to form the Joint Management Councils was developed in a
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labour management co-operation that was held in New Delhi in 1958. The functions have been divided into four
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categories that include general functions, functions with the workers’ rights, functions that are linked with the right to
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receive the latest information and functions linked to rights for exercising administrative powers.
3/ The important attributes of Joint Management Councils are.
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(i) It can be consulted by management on certain specified matters.
kNByYUYbN3Q/YY9qCtndtchA41393uUZQ/
(ii) In certain matters management is expected to share information with members of council.
(iii) The council has administrative responsibilities
po8D9iwMYuXcoqCpNpmorw2RS9WGubAA4vCzDss8VppU5FPcJsvX9PWaj4bYmZurcWHSle+SWXA/pVosVI/
RVGkbfX6va3RXOnaCOVs9Ztc0ntNfXN7J5AYmRlaUFsPbg+rm+R+aXtA7HkLrr/
4NmNA50tP31TrS6jq2MWjUonVVEfs7ak7UImNQMF31lb4WqKQ5ine5yXDgfxd+D5heMPLYvNslMgnOQjkjBexfPJ+66JC
Page No. 7
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L7vvIK6FYaPiGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD5slZy
RchqD75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/d2XgLqVYjnXMI5ojeZA+j1a50MT8PIWVtLvF95Bq
(iv) Subjects under collective bargaining, such as wages, bonus and allowances have been excluded from the
m3RMlXLcb6AQ6/ scope of JMC.
JMC differ from work committee in two major aspects.
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(i) It has wider scope than work committee.
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(ii) JMC have administrative responsibility for safety, vocational training and welfare of workers.
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Objectives of JMC:
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(i) Promote healthy relations between management and workers.
JU9e5o5VJ/Kw/
(ii) Build trust and understanding between management and workers.
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(iii) Improve worker efficiency.
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(iv) Provide welfare facilities to the workers.
7mOD+y0o= (v) Educate workers about the scheme for their increased participation.
However, the working of these Joint Management Councils that were formed in both the public and private
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have not been satisfactory owing +919811854308
to hostility of employerswww.assignmentguru.co.in
and workers and also due to lack of proper
understanding of purposes and benefits.
IGNOU SOLVED ASSIGNMENT GURU BCA MCA BA MA BDP B.COM M.COM BBA MBA B.ED B.SC M.SC BTS SOLUTION
Some of the reasons are.
ASSIGNMENTS IGNOU assignments (PDF | Print) with Easy Proper solution for IGNOU students Online IGNOU free Study
(i) Management did not showed faith and commitment in working of these councils.
material Assignment SOLUTIONS
(ii) Objectives, GUIDE
scope and All Subjects
functions of the (July January
council were )not
free and Paid
clearly solved assignment
defined.
Facebook (iii) Differences between management and employers over working of the councils.
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(iv) Management and employees lacked proper understanding the scheme and were rather indifferent towards
it.
(v) Delayed or non-implementation of the council decisions.
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(vi) Inter-council and intra-council disputes.
Shop Councils: The government announced a scheme in October 1975, which provided for shop councils at
shop level and joint councils at enterprise level.
Instagram The main features of Shop Council were.
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(a) Shop Councils can be set up only in enterprises employing 500 or more employees
(b) An enterprise must have at least one (or more) Shop Councils
(c) The number of shop councils in an enterprise is decided by the employees of the company in consultation
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with the recognised union.
(d) The number of member in a given shop Council is decided by the employer in consultation with the recognised
union.
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(e) A Shop Council must have equal number of employee and Employer Representatives. Employer Representative
are nominated by management, while worker representatives belong to Shop or concerned department.
(f) Council derives at a decision by consensus and not by voting.
(g) A council formed will function for a period of 2 years.
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(h) The council must meet at least once in a month.
(i) Chairman of the council is a management representative, whereas vice-chairman is a representative from
the workers.
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(j) The council decision is required to be implemented within a month by the concerned parties.
Functions of Shop Councils
(i) Improve worker productivity, production and efficiency.
(ii) Analyse problem of absenteeism from work and recommend measure to reduce the aforesaid problem.
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(iii) Look into shop discipline.
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(iv) Analyse safety and health aspects of working conditions, and take corrective measures.
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(v) Ensure welfare and health conditions of the shop.
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(vi) Ensure tow way communication between employers and employees, especially with respect to targets.
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Joint Councils: Some of the important attributes of joint council are.
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l Tenure of joint councils is two years
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l A joint council is chaired by the chief executive.
po8D9iwMYuXcoqCpNpmorw2RS9WGubAA4vCzDss8VppU5FPcJsvX9PWaj4bYmZurcWHSle+SWXA/pVosVI/
l The members of the council nominate its vice-chairman.
RVGkbfX6va3RXOnaCOVs9Ztc0ntNfXN7J5AYmRlaUFsPbg+rm+R+aXtA7HkLrr/
l The secretary is appointed by the council and is responsible for the functions.
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lVHhz2oXIkz78kIMwGMHFMv5k5WJhL89laMOMrapHYFJdPQ7pkiIZPqh10tFTxnLDqsGEnwUDyVFlMRfi5ddjarL3yL7vvIK6FYa
Page No. 8
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hfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/d2XgLqVYjnXMI5ojeZA+j1a50MT8PIWVtLvF95Bq
l The council schedules to meet once in every four months.
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l All decisions of the council are taken by consensus and must be implemented in one month duration.
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l The main functions of joint councils are as follows.
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l Determine productivity norms.
Settle matters unresolved by the shop council body.
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l
To ensure maximum production using optimal utilisation of resources.
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l
l Ensure general health and safety of industry workers.
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Achievements of WPM in India: The WPM schemes aimed at achievement of healthy relationship between
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employees and employers. However the objective has been realised. There are number of reasons behind this, some
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of which are listed below.
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(i) Lack of management faith and commitment in working of these schemes.
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(ii) Lack of clear objectives, scope and functions of the schemes.
(iii)
Don’t CopyDifferences between management and employers
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+919811854308 the councils.
(iv) Management and employees lacked proper understanding the scheme and were rather indifferent towards
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(v) DelayedIGNOU assignments (PDF
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decisions.
(vi) Inter-council and intra-council disputes.
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Pre-requisites for WPM: There are certain pre-requites for successful implantation of WPM scheme.
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(i) Effective management.
(ii) Strong trade union.
(iii) Strong worker participation via better understanding.
G+ (iv) Lack of promotion, follow-up and amendment measures on part of government.
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(v) Lack of understanding of scheme on part of workers.
Q. 4. Discuss salient features of the Export-Import Policy 1997-2002. (20)
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1. To make Indian economy global-oriented and derive advantage of new opportunities in the global market.
2. Tohttps://twitter.com/ignou_guru
Twitter provide access to essential raw materials, components, intermediates, consumables and other goods required
for supporting/augmenting production and attain sustained economic development.
3. To increase technical strength and efficiency of various sectors of economy (agriculture, industry and services)
to attain international competitiveness and quality standards.
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4. To avail quality-oriented products at affordable prices.
Main Features of EXIM Policy
The main features of EXIM (Export-Import) Policy are outlined below:
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l items of import and export, expect those on negative list of items are free and subjected to Government
regulations. The list of negative items is appended to the policy.
l Negative List of Items (Imports): The items on negative list of imports are categorised as follows:
l
Email Prohibited
id Items: The list includes ivory, tallow fat and oils, animal rennet, wild animals; etc.
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l Restricted Items: Import of restricted items can be done only against a 'special import licence', which is
freely transferable. These items include the following:
u Consumer and electronic goods, telephonic instruments, fabrics, wines, alcoholic beverage concentrates,
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EPABX watches; etc.
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u Precious, semi-precious and other stones.
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u Security, safety items.
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u Items like fire arms, explosives, paper for security printing, ammunition; etc.
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u Plants, animals and seeds

RJ3/ u Insecticides
u Drugs like tetracycline, streptomycin, penicillin; etc.
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u Chemicals and allied items
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u Items from small scale industries
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Page No. 9
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CWdjOlVHhz2oXIkz78kIMwGMHFMv5k5WJhL89laMOMrapHYFJdPQ7pkiIZPqh10tFTxnLDqsGEnwUDyVFlMRfi5ddjar
L3yL7vvIK6FYaPiGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD
5slZyRchqD75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/
l Canalised Items: Canalised items as the name suggests can be imported only through certain organisations/
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institutions authorised by government. The important groups in canalised items are as follows:
u Petroleum products
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u Seeds
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u Fertilizers
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u Coconut oil
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u All non-edible oils
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u Cereals
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u Cloves and Cinnamon
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u Palm Stearin and kernel
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l An Importer: Exporter Code is a number assigned/granted by a competent government or affiliated authority.
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A person without this code cannot make exports or imports.
l The policy also asserts computerised of all offices of Director General of Foreign Trade (DGFT) for procedural
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l
IGNOU Trading House: A trading
SOLVED ASSIGNMENT house
GURU BCAmust
MCAmeet
BA MAthe BDP
following
B.COMcriteria:
M.COM BBA MBA B.ED B.SC M.SC BTS SOLUTION
u Export Houses: If average export turnover of the house exceeds Rs. 20 crores during last three years.
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u Trading Houses: If average export turnover of the house exceeds Rs. 100 crores.
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u Super Trading Houses: If average export turnover of the house exceeds Rs. 500 crores.
u Super
Facebook Star Trading houses: If average export turnover of the house exceeds Rs. 1500 crores.
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TRADING HOUSES TYPE AVERAGE EXPORT TURNOVER


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Export houses >Rs. 20 crores during last three years.
Trading houses >Rs. 100 crores during last three years.
Super Trading houses >Rs. 500 crores during last three years.
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Super Star Trading houses >Rs. 1500 crores during last three years.
l Following units can import are privileged to import all types of goods free from duty:
u Export Oriented Units (EOUs) units
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Export Promotion Zones (EPZ) units
u STP units
u EHTP units
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The goods imported include capital goods which might be required by these units for production-purpose (capital
goods). However, these import items excludes the items on negative list of imports. Such units are as 'Net Foreign
Exchange Earners'.
Net Foreign exchange Earning Percent (NFEP) can be calculated as a percent of exports using the following
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formulae:
NFEP = A - B / B
Where,
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Aid ignouassignmentguru@gmail.com
= FOB value of exports
B = Value of imported items + CIF value of imported capital goods + Value of payments in foreign exchange.
As said before, the production of these units is to be exported. However, subjected to the following conditions:
l Up to 5% of the rejected production (in terms of value) can be sold to Domestic Tariff Area (DTA)
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l Up to 25% of the total production (in terms of value) can be sold to Domestic Tariff Area (DTA). This is
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however subjected to payment of applicable duty.
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Goods other than those on Negative List of items can be imported without any restrictions. Some of the goods
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under this category are:
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l Capital goods
J3/ l Raw material
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l Components
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l Accessories
po8D9iwMYuXcoqCpNpmorw2RS9WGubAA4vCzDss8VppU5FPcJsvX9PWaj4bYmZurcWHSle+SWXA/pVosVI/
RVGkbfX6va3RXOnaCOVs9Ztc0ntNfXN7J5AYmRlaUFsPbg+rm+R+aXtA7HkLrr/
Page No.1 0
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lZyRchqD75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/
l Spare parts
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l Instruments
Other goods
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l
The above goods have following conditions attached to them:
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1. Imports can be done by any individual, who may not be the Actual User of product(s) imported.
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2. Custom authorities can allow import goods without license on satisfactory execution of bank guarantee.
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3. Goods send abroad for improvement, upgradation can be imported without license.
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4. Actual users can import second hand capital goods (with minimum residual life of five years) without license.
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5. Capital goods can be exported under the Export Promotion Capital Goods Scheme of the government at
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concessional rates, subject to export obligations.
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6. Foreign exporters an import material like labels, price tags, buttons, drawings, patterns, designs; etc required
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for specific export orders as a part of passenger baggage.
l A person can freely import goods which are not on negative list or against Special Import Licence, abbreviated
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Special Import Licence is a permit granted to exporters to import consumer goods which are otherwise on
IGNOU SOLVED ASSIGNMENT GURU BCA MCA BA MA BDP B.COM M.COM BBA MBA B.ED B.SC M.SC BTS
restricted list.
SOLUTION ASSIGNMENTS IGNOU assignments (PDF | Print) with Easy Proper solution for IGNOU students Online
l Private bonded warehouse for stationing export-import goods can be set up in Domestic Tariff Area (DTA).
IGNOU
l Thefree Study material
government Assignment
encourages SOLUTIONS
exporters and GUIDE
manufacturers All Subjects
to attain (Julystandards
international January for
) free and exported.
products Paid solved
assignment
The Central government undertakes programmes to create quality awareness and works for the upgradation
of manufacturing facilities and laboratories to level them up to international standards. The concept of Total
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Quality Management (TQM) has been promoted.
Duty Exemption Scheme: It is a scheme for exporters. On basis of function performed exporters can be
merchant (trade) exporters who indulge in trade of manufactured goods or manufacturer exporters who produce
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goods for exports. The duty exemption scheme comprises of Duty Free Licence and Duty Entitlement Pass Book:
l Duty Free Licence
u Advance Licence: An advance license permits exporters (manufacturer or merchant) to import goods

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manufacturing without payment of custom duty.
u Intermediate Licence: It is granted to manufacturer exporters for importing inputs required in
manufacturing of goods which would be exported by merchant exporter.
u Special Import Licence (SIL): Special Import Licence is a permit granted to exporters (manufacturer or
Twittermerchant)
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to import goods which are otherwise on restricted list. A special import license is also issued for
importing goods to be supplied to EOUs, STPs, EHTPs, or units in EPZ; etc.
l Duty Entitlement Pass Book (DEPB)
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The Duty Entitlement Pass Book (DEPB) allows exporters to claim credit in freely convertible currency as
a percentage of job value of exports. DEPB is available against export-products and at rates as specified by
the Director General of Foreign Trade (DGFT).
The Duty Entitlement Pass Book (DEPB) can be issued on post-export or pre-export basis.
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u DEPB on Post-export basis: It is granted for exports which have been already made.
u DEPB on Pre-export basis: It is granted to eligible exporters for importing goods which would be
required for production.
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5. Write short notes on the following
(a) Mixed economy in India
Ans. In India, mixed economic system was proposed by Shri Jawahar Lal Nehru. In mixed economic system
public sector co-exist with the private sector, with both private individuals and government holding a significant
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portion of production units. The Indian mixed economy is characterised by predominance of public sector. The Indian
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government has reserved control in certain sensitive sectors like defence, besides core, heavy and basic industries,
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social and economic infrastructure including banking and insurance. Hence, public sector in Indian economy is
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commonly referred to as ‘engine of growth’. The state reserved its role and control over key industries including
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defence, power, railways, waterways, shipping, heavy industries; to enumerate some.
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The early phase of economic planning in India was characterised by predominant role of state and was called,
sRJ3/
‘development of socialistic pattern of society’. It was followed by ‘democratic socialism’, aiming at growth with
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myBkNByYUYbN3Q/YY9qCtndtchA41393uUZQ/
Page No.1 1
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6JCWdjOlVHhz2oXIkz78kIMwGMHFMv5k5WJhL89laMOMrapHYFJdPQ7pkiIZPqh10tFTxnLDqsGEnwUDyVFlMRfi5d
m3RMlXLcb6AQ6/
social justice. During this stage, the state initiated programmes for reducing income and social inequalities. However,
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over the years many reforms have been introduced and economy has been liberalised for increased participation of
foreign and private players. Though private sector was allowed to operate in other areas of economy, it was necessary
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that self-interest was aligned with social interests. In case, the private players exploit the workers and fail to subordinate
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the profit-maximisation, the state shall intervene and regulate the working of private sector. Thus, it can be aptly
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described as ‘Mixed Capitalistic Economic System’.
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The mixed economic system is desirable from socio-economic point of view. Most countries have a mixed
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economic system, with some private ownership and some government ownership, as both capitalistic and socialistic
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economic systems are extreme approaches. Whereas in capitalistic model, all means of production are owned by
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private players and driven by profit motive, in the socialistic system (also called Soviet model), all means of production
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are state owned. The Soviet model leads to a totalitarian state in which the citizens are denied of democratic freedom
and power is concentrated in hands of state cabinet, which are against the democratic system of power. On the other
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in the +919811854308
capitalistic system there is exploitation of labour and workers www.assignmentguru.co.in
as the system is driven by profit motive.
IGNOU SOLVED ASSIGNMENT GURU BCA MCA BA MA BDP B.COM M.COM sectors,
The mixed economy framework permits co-existence of public and private BBA MBA both of which
B.ED haveBTS
B.SC M.SC to work for
SOLUTION
attainment of IGNOU
ASSIGNMENTS socio-economic goals(PDF
assignments of planning.
| Print) Over the years,
with Easy many
Proper economic
solution reformsstudents
for IGNOU have been introduced
Online IGNOUtofree
balance economy in the interests of nation.
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(b) Consumer Protection Act, 1986
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Facebook Consumer Protection Act, 1986 provides for protection of consumer interests of consumers and contains
provision for the establishment of consumer councils and other authorities for the settlement of consumers' griev-
ances and disputes.
The act was enacted by Parliament in the Thirty-seventh Year of the Republic of India.
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features of Consumer Protection Act, 1986
Some of the important features if Consumer Protection Act, 1986 are:
1. It aims at providing overall/holistic protection to the consumers.
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2. The act is applicable to entire, except for the state of Jammu and Kashmir.
3. The act is applicable to all goods and services, unless explicitly stated by the Central Government.
4. The act protects consumer against defective and hazardous goods, deficient and inappropriate services and
unfair trade practices like hoarding, black marketing, insider trading, monopolies; etc.
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5. The act provides redressal of consumer grievances in a simple and inexpensive way.
6. The most important aspect of the act is that it has a set time-frame for settlement.
7. Consumers having common interests and grievances can collectively file complaint, under ‘class action’
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provided under the act.
8. The act cover both public and private sector suppliers of goods and services.
9. The act provides for formation of Consumer Protection Councils, which promote consumer protection under
the consumer rights (Section 6, Consumer Protection Act, 1986). It is important that these councils do not
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have any legal authority under the act and merely facilitate addressal of consumer grievances.
10. The act has a comprehensive definition of services. The considers services of any description rendered/
offered by any individual or organisation, including public sector undertakings or government agency. This
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excludes free services and contracts of personal services. The following services also donot fall under the
purview of the act:
(a) Civil amenities provided by municipal authorities.
(b) Medical services provided by government hospitals.
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11. The at also provides for unfair trade practices like food adulteration, overcharging or short weighing on fixed
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price items and packaged commodities; etc. Such grievances can be directly taken to District Forums di-
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rectly.
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12. The act is considered as a progressive instance of social welfare legislation. The act has fortified consumer
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movement in India. The act is one of its kinds, as it pertains to market and seeks redressal of complaints
/
arising out the market interactions.
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13. The act is customer-oriented and safeguards the interests of the consumers against unjust and exploitative
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business practices like selling of defective goods, rendering poor services; etc.
po8D9iwMYuXcoqCpNpmorw2RS9WGubAA4vCzDss8VppU5FPcJsvX9PWaj4bYmZurcWHSle+SWXA/pVosVI/
RVGkbfX6va3RXOnaCOVs9Ztc0ntNfXN7J5AYmRlaUFsPbg+rm+R+aXtA7HkLrr/
4NmNA50tP31TrS6jq2MWjUonVVEfs7ak7UImNQMF31lb4WqKQ5ine5yXDgfxd+D5heMPLYvNslMgnOQjkjBexfPJ+66JC
Page No.1 2
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7vvIK6FYaPiGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD5slZyR
chqD75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/d2XgLqVYjnXMI5ojeZA+j1a50MT8PIWVtLvF95Bq
14. The act provides for a simple procedure for filing grievances. The complaint can be made in a simple form,
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where the name and address of aggrieved party and opposing party are duly mentioned. The complaint can
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be written in form of a letter to the Redressal Forum. It is not obligatory for the parties to engage advocate.
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The act allows the complainant or authorised agent to appear before the Redressal Forum.
Definitions of Expressions Used in the Act
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Goods: The act defines 'goods' as every kind of movable property other than claims and money, and includes
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l
stocks, shares, crops, grass and other things attached to or forming part of land which are agreed to be served
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before sale or under contract of sales of Sales of Goods Act, 1930.
olv2HlC6KIGbozU13kvcw2irisSDLf/JU9e5o5VJ/Kw/
l Services: The act has a comprehensive definition of services. The considers services of any description
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rendered/offered by any individual or organisation, including public sector undertakings or government agency.
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This excludes free services and contracts of personal services. The following services also donot fall under
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the purview of the act:
u Civil amenities provided by municipal authorities
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u Medical services provided by government hospitals

IGNOUServices
SOLVED include the provision
ASSIGNMENT GURUof facilities
BCA MCA in BA
connection
MA BDPwith banking,
B.COM M.COMfinancing,
BBA MBAinsurance, transport,
B.ED B.SC processing,
M.SC BTS SOLUTION
supply of electrical or other energy, board or lodging or both, housing construction, entertainment,
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purveying of news or other information.
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l Manufacturer: Section 2(1) of Consumer Protection Act defines manufacturer as:
Facebooku A person who manufactures goods or a part thereof.
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u A person who assembles parts.
u A person who assembles parts.
l Consumer:
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u A person who buys any goods for a consideration – It includes a person who buys goods for a consideration
or own use or for other user of such goods with the approval of the buyer. This excludes goods bought for
resale or commercial use.
Instagram
u A https://www.instagram.com/ignouassignmentguru
person who avails any service for a consideration–It includes beneficiary of services.
The consideration for goods and services may have been wholly or partly paid or promised in cash or under
deferred system of payment.
l
Twitter Person: The act defines a person as:
https://twitter.com/ignou_guru
u A firm (registered or unregistered).
u A Hindu undivided Family (HUF).
u Association of Person (AOP) [registered or unregistered under the Societies Registration Act].
Youtubeu https://www.youtube.com/channel/UC_h1JtEEoLzAXHYFp7awbaA
A Cooperative Society.
l Trader: A person who sells, or distributes goods for selling is called a trader, and includes manufacturers and
distributors. If the goods are sold/ distributed in packaged form, the term trader also includes the packer of
Telegramsuch goods.
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l Consumer Dispute: Section 2(1)c of Consumer Protection Act defines consumer dispute as a dispute
wherein the person against whom compliant has been filed or allegations have been made denies the same.
l Defect: Section 2(1)c of Consumer Protection Act defines defect as a fault, shortcoming or imperfection in
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quality, potency, quantity, purity or standard of the product,
l Deficiency: Deficiency corresponds to defects in case of goods. Section 2(1) g of Consumer Protection Act
defines deficiency fault, shortcoming or imperfection in quality, manner of performance/ delivery, nature po-
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tency, quantity, purity or standard of the product.
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l National Commission: National Commission is Consumer Disputes Redressal Commission established by
Central Government under Section 9(c) of Consumer Protection Act, 1986.
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l State Commission: State Commission is Consumer Disputes Redressal Commission established by State
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Government under Section 9(b) of Consumer Protection Act, 1986.
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J3/ l District forum: District forum is Consumer Disputes Redressal Forum, established by State Government
under Section 9(a) of Consumer Protection Act, 1986, in each district of the state. If the state government
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deems it fit, it can establish more than one district forum in a district.
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po8D9iwMYuXcoqCpNpmorw2RS9WGubAA4vCzDss8VppU5FPcJsvX9PWaj4bYmZurcWHSle+SWXA/pVosVI/
RVGkbfX6va3RXOnaCOVs9Ztc0ntNfXN7J5AYmRlaUFsPbg+rm+R+aXtA7HkLrr/
Page No.1 3
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CWdjOlVHhz2oXIkz78kIMwGMHFMv5k5WJhL89laMOMrapHYFJdPQ7pkiIZPqh10tFTxnLDqsGEnwUDyVFlMRfi5ddjarL
3yL7vvIK6FYaPiGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD5s
lZyRchqD75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/
m3RMlXLcb6AQ6/
l Restrictive Trade Practices (RTP): Restrictive trade practices prevent, distort or restrict the buying,
hiring or availing of goods or services by the consumers. The act defines restrictive trade practices as one
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which affect (distort, prevent or restrict) open competition in any manner and in particular:
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u Practices who prevent capital or resource flow into the production.
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u Practices which tend to tend to manipulate the prices or delivery conditions or free flow of supplies in the
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market relating to goods or services in a way that imposes unjustified costs or restrictions on consumers.
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There are various types of restrictive trade practices under Section 33 of MRTP that are remittable with the
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director general. They are:
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1. Refusal to Deal: This is an agreement under which there is restriction for the goods to be purchased or sold.
2. Tie-up Sales and full line forcing: This is called as tying arrangement. It is the agreement that requires a
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purchaser of goods as a precondition of the deal to purchase the other hoods.
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3. Exclusive Dealing: This is any agreement that restricts the purchasers during trading to acquire or deal other
goodsCopy
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than from the seller or any other person.
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4. Collective Agreement: This is an agreement where the buyers and sellers work jointly to make in huge
IGNOU
gains. SOLVED ASSIGNMENT GURU BCA MCA BA MA BDP B.COM M.COM BBA MBA B.ED B.SC M.SC BTS SOLUTION
ASSIGNMENTS IGNOU assignments
5. Discriminatory Dealings: It (PDF
is the| practice
Print) with Easy Propergranting
of concession solutionorfor IGNOU
benefit students
granting Online
that IGNOU free
also includes
allowing
Study of discounts
material or rebates
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(July January ) free and Paid solved assignment
6. Re-sale Price Maintenance: This is an agreement signed between the buyers and the sellers where the
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dealers arehttps://www.facebook.com/IGNOUAssignmentGURU/
advised to sell the products either at a minimum price, or a maximum price as asked by the dealers.
7. Territorial Restrictions: This agreement restricts the supply of goods in any particular area.
8. Controlling Manufacturing Process: Under this agreement, there is a complete restriction of employment
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G+ any method, machinery or process during the manufacturing of goods.
9. Boycott: This is an agreement where the trader boycotts himself from the trade associations to share certain
personal benefits.
10. Predatory Pricing: It is the agreement that asks the dealers to sell the goods at such a price that can
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eliminate competitors or the competition.
11. Restrictive on class of Suppliers from whom the Products are Purchased: Under this agreement,
there is a restriction on number of whole sellers of dealers who are selling the goods.
12. Abstinence
Twitter from Bids in Auction: This is an act where the concept of abstinence from bidding in auction
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is encouraged for certain personal benefits.
However, those that are exempted from being registered are:
1. Agreements taking place in J&K.
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2. Agreements via undertakings that are exempted under section 3 falling under MRTP Act.
3. The restrictive trade practices that are must for safeguarding rights of patentees.
4. The restrictive trade practices that relate to production, supply or control of goods for exporting.
5. For an agreement, where there is dealing between buyer and seller for making personal gains by consuming
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the goods on their own.
6. Certain restrictive trade practices approved by central government and agreements to which the central
government is also a party.
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agreements with no substantial economic significance.
Unfair Trade Practices (UTP): Section 36A of Consumer Protection Act, 1986 defines unfair trade practices
are practices which for the purpose of sales, use o supply of goods or for the provisions of the services, adopt unfair
methods, or deceptive practices. Some of the deceptive practices included under the definition are:
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False Representation and Misleading Advertisement: The stated standards, quality, quantity, grade, model,
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style or composition in an advertisement are not in the actual product.
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l Product Non: compliance with safety standards
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l Holding and destruction of goods to create artificial inflation
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l Conducting promotional schemes or contests to offer gifts, discounts, free product, etc with an intention of not
J3/ giving them
l Baiting
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l Switch selling
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l Bargain sales
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RVGkbfX6va3RXOnaCOVs9Ztc0ntNfXN7J5AYmRlaUFsPbg+rm+R+aXtA7HkLrr/
4NmNA50tP31TrS6jq2MWjUonVVEfs7ak7UImNQMF31lb4WqKQ5ine5yXDgfxd+D5heMPLYvNslMgnOQjkjBexfPJ+66J
Page No.1 4
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3yL7vvIK6FYaPiGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD5s
lZyRchqD75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/
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Unfair Trade Practices have been defined in both MRTP Act, 1969 and Consumer Protection Act, 1986.
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No relief to Consumers in Case of Unfair and Restrictive Trade Practice
In case of Restrictive Trade Practices (RTP) and Unfair Trade Practices (UTP), the district forum may order the
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involved entities to do away from these or ask not to report such cases.
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Person who can File a complaint under the Act
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A person who can file a complaint under the under can be from any of the following categories:
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l A consumer (who bought/received certain goods/services).
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l Group of Consumers having Common Interest/ Grievances or complaints.
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l Central Government.
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l Any State Government.
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l A Voluntary Consumer Association, registered under Companies Act, 1956 or other law in force..
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l Consumer Protection Councils.
(c) Industrial sickness
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term industrial sickness has been defined www.assignmentguru.co.in
in Sick Industrial Companies (Special Provision) Act, 1985,
(amended
IGNOU 1993)ASSIGNMENT
SOLVED as, “one which has BCA
GURU beenMCA
in existence
BA MA BDP for at least more
B.COM M.COM than fiveMBA
BBA years, andB.SC
B.ED hasM.SC
the accumulated
BTS SOLUTION
losses equal to or exceeding its entire networth at the end of any financial year.”
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It is an indicative of malfunctioning of industrial units and is not an unnatural phenomenon.
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If the sickness of an industrial unit is identified during early stages, it is called incipient sickness. In case of small
scale
Facebookunits, if the capacity utilisation achieved during preceding five years is less than 50 percent of the highest
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capacity achieved during preceding five years, it is taken as an indicator of incipient sickness. There are many
indicators of industrial sickness like liquidity crunch, decline in revenue, declining market price of the company'
shares, skipping of dividend payout and default in loan repayment.
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If net worth of an industrial unit declines by 50 per cent or more, or there is a halt in business for a period of 6
months or more, it is considered as an indicator of actual sickness. Thus, an industrial unit is considered as sick, if the
company sustains losses for period of two years or more, and if the latest balance sheet shows accumulated losses
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50 per cent of the paid-up capital and reserves.
Defining industrial sickness is a difficult task. Usually, incipient sickness and other non-financial indicators are
used as early indicators of industrial sickness. However, accurate financial information is not always available. The
financial information contained in the annual reports and other public documents is not completely reliable. Further,
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financial indicators give clue about sickness which has already set in. Hence action based on these will be rather
curative rather than preventive and these indicators cannot be used as early signs of sickness (incipient sickness).
Industrial sickness can be traced to management deficiencies and other non-financial factors. However these
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are very https://www.youtube.com/channel/UC_h1JtEEoLzAXHYFp7awbaA
subjective in nature and cannot be easily known. Sometimes factors causing sickness are out of firm's
control. These exogenous factors affect the entire industry, but some unit(s) may be more adversely affected than
others. Some of the exogenous factors include unfavourable market conditions (recession), rise in competition and
entry of substitutes,
Telegram changes in government policy, decline /changes in demand, rise in production cost, changes in
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logistics (distribution and supply), changes in monetary policy, shortage in supply of inputs due to reasons like import
freeze, increase in import duty, crop failure; etc.
(d) Importance of foreign trade
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Foreign trade helps in development of the participating countries and is important for the participating
countries in following ways:
l Enables availability of wider range of goods: Expansion of business and presence of large number of
players helps in dissolving monopolistic entities and increases competition. It also encourages product innovation
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and brings wider availability goods and services to choose from. The modern techniques adopted in business
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processes help in raising the product quality and standard.
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l Better utilisation of country's resources: Foreign trade is considered as a simulator of economic growth
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of a country. It helps in optimal utilisation of resources of various countries. For the perspective of host
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country, foreign investment helps in expansion of employment opportunities and enables better utilisation of
3/ manpower and other resources. Multinational companies also help in expansion of domestic suppliers.
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l Helps in reduction of production cost: The modern techniques adopted in business processes help in
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raising the product quality and standard, along with cost-reduction. Foreign investors bring technical and
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Page No.1 5
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WdjOlVHhz2oXIkz78kIMwGMHFMv5k5WJhL89laMOMrapHYFJdPQ7pkiIZPqh10tFTxnLDqsGEnwUDyVFlMRfi5ddjarL3y
L7vvIK6FYaPiGO5FdbN6hWddLG95nzMPlfDeFCmrg4lC14EuiHWCq3gupZe7tNp8wZLtxKjyMXFJ07cWJRAXKU2iDD5slZy
RchqD75kkdcJQhfZE6pKpW4tHqG/o4MiAKhW654tQZUQ/OZtqL5/d2XgLqVYjnXMI5ojeZA+j1a50MT8PIWVtLvF95Bq
managerial knowledge transfer to under-developed and developing nations. it helps in training and development
of manpower and adoption of low-cost operation techniques.
l Enables price stability: Drastic changes in price level of commodities can be controlled by selectively
indulging in foreign trade. For example, if price of a certain commodity rises due to short supply, the same can
be imported to level down the increase. Similarly, if price of a commodity fall due to increased supply in the
domestic market, the surplus can be exported to elevate the prices to optimal level.
l Provides greater employment opportunities: Infusion of foreign capital helps in expanding employment
sector. It helps in raising income and investment level in the host country.
l Helps in economic development: Savings, foreign trade, foreign exchange and technology are critical for
economic development. Foreign investment helps in economic development by filling savings gaps, trade and
technology gaps.
l Increased contribution to government revenues: Foreign investment helps in increasing government
revenue in form of corporate taxes. It also helps in reducing trade deficit by increase exports and corresponding
decrease in imports.
l Helps in establishing relationships between countries: Foreign trade is considered as an important
factor determining relationship between countries. Inversely, cordial relationships also help in promoting trade
relations and can help in achieving world economic integration and political peace.

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