Question
Write two impacts of legal-regulatory environment on business.
Solution
Impact of Legal Regulatory Environment on Business: The following are the examples of the impact of the legal regulatory environment on business:
(i) By removing control on the capital market, a huge amount of capital was collected through various new issues in the primary market.
(ii) By giving relaxation imposed on the Foreign Direct Investment (FDI) and Foreign Exchange, many multinational companies entered in the Indian market. Consequently, there has been a tremendous increase in the foreign exchange reserves in the country.
