Subject Code: PEB1A Paper: Economic Environment for Business Specific Instructions:

Answer all the four questions. Marks allotted 100. Each Question carries equal marks.

Word limit is 250 - 400 words

General Instructions:
The Student should submit this assignment in the handwritten form (not in the typed format) The Student should submit this assignment within the time specified by the exam dept Each Question mentioned in this assignment should be answered within the word limit specified The student should only use the Rule sheet papers for answering the questions. The student should attach this assignment paper with the answered papers.

Failure to comply with the above Five instructions would lead to rejection of assignment.

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Question No 1

In the era of globalization over the last two decades, the pro-business macroeconomic environment fostered by the governments in many less developed countries involves, inter alia, encouragement of foreign direct investment in their economies. In light of this, do you think the less developed countries gain or lose due to increasing foreign direct investment or presence of multinational corporations in their economies? Give reasons.
Question No 2

Economic development through export orientation under open economic environment is now being sought by most less developed countries. In light of this, summarise the trade policy debate between the pessimists and optimists concerning the potential for future growth in exports of manufactures from the less developed countries to the developed countries.
Question No 3

If businesses do not make an appraisal of the changing environment, they may face loss of competitive advantage. Comment and discuss.
Question No 4

What is meant by business cycle? Why is it important to businesses? Explain the four phases of the business cycleUpturn, Boom, Downturn and Slumpin terms of the multiplier and accelerator theories.