3. Reread the Country Focus on India, and answer the following questions:
a. What kind of economic system did India operate under during 1947-1990? What kind of system is it
moving toward today? What are the impediments to completing this transformation?
Being under British rule and gaining their independence in 1947. The economic system India operated
under during 1947-1990 was a mixed economy. Where there were a lot of state-owned enterprises,
centralized planning, and subsidies. Early in the 1990’s, it was seen that this system was not reaching the
amount of economic value to the country as opposed to other Southeast Asian countries. India is
striving to become a market economy. Indian is emerging into a global marketplace, selling items for low
cost.
b. slowed down, economic growth don’t expand, reform
c. How would privatization, deregulation, and the removal of barriers to foreign direct investment affect
the efficiency of business, new business formation, and the rate of economic growth in India during the
post-1990-time period?
It would greatly affect the efficiency of business in a positive way meaning that more foreign companies
will start to do business with India and establish their companies and maybe headquarters if it grows like
it is growing at the moment. But they have a long way to go because it will take time to reduce tariffs
and quotas. Privatizing means that companies are owned by private individuals therefore they are more
willing to go further to do business.
d. India now has pockets of strengths in key high-technology industries such as software and
need to maintain a good infrastructure