CUET Preparation Today
Clamoring to enter India's red-hot retail sector, the world's largest chains, including WalMart Stores, Carrefour and Tesco, are seeking the best way to enter the country, despite a government ban on foreign direct investment in the market. Recent large investment by major Indian businesses, like Reliance Industries and Bharti Airtel, have increased the sense of urgency for foreign retailers..... Last week Bharti Airtel indicated that it was in talks with Wal-Mart, Carrefour and Tesco to set up a retailing joint venture .... India's retail sector is attractive not only because of its fast growth, but because family run street corner stores have 97% of the nation's business. But this industry trait is precisely why the government makes it hard for foreigners to enter the market. Politicians frequently argue that global retailers would destroy thousands of small local players and fledgling domestic chains. |
Parle drinks being bought by Coca Cola in an example of which of the following? |
Liberalization De-Monetisation Globalization Acquisition |
Acquisition |
The correct answer is Option 4: Acquisition
An acquisition is a business transaction in which one company purchases the controlling interest in another company. In this case, Coca-Cola purchased Parle drinks, which gave them control over the company's assets, brands, and operations. While liberalization and globalization may have enabled the acquisition, the correct label for the act of buying Parle is acquisition.
Option 1: Liberalization: Liberalization refers to the process of removing or loosening government restrictions on economic activity, such as reducing tariffs or allowing private companies into previously state-controlled sectors. It enables acquisitions, but the act of buying Parle is not liberalization itself.
Option 2: Demonetisation: Demonetisation means withdrawing legal tender status from a currency note (like India did in 2016 with ₹500 and ₹1000 notes). It is unrelated to business deals or acquisitions.
Option 3: Globalization- Globalization is the broader process of increased interconnectedness of economies and businesses across borders. The Coca Cola-Parle deal reflects globalization in action, but the specific event of one company buying another is more precisely an acquisition. |
