Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India. It set up its office in Jamnagar with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. The success of the company attracted many other players to enter the market. The competition resulted in the reduction in prices, thereby benefiting the customers.
(a) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.
(b) Also, explain briefly any three impacts of these concepts on Indian business and industry.

(a) Two major concepts related to government policy which has been discussed in the above paragraph are
1) Liberalisation: Liberalisation refers to the elimination of government control and restrictions in the form of licenses, permits, and quotas. The main aim was to liberalise the Indian business industry from excessive government control and to give complete freedom to make their own decisions regarding the investments, marketing, pricing, and production.
2) Globalisation: Globalisation refers to the process of socioeconomic integration and development of various economies of the world. It is a process associated with a free flow of information, knowledge, services and goods so as to expand business and trade across the borders of countries. It aims at increasing openness, growing economic independence and promoting economic integration in the world economy.
(b) Impacts of Liberalisation and globalisation on Indian business and industry are
i. Increased competition: The policy allowed easy entry of foreign firms and abolition of licensing and encouragement of foreign direct investments leading to aggressive competition internally as well as externally.  The domestic companies thus, have to compete with the international firms in the market which is a serious challenge and threat to them.
ii. Increased demand: with the inclusion of new market and companies the consumers demand has increased. Because of the fierce competition from the foreign market and new businessmen joining the production line, there has been a tremendous increase in customers’ demands for the better and different changing choice of goods and services.
iii. Change in business policies: due to new market and industrial policies,  the business enterprises had to alter their policies and operations from time to time following the government policies.