Which one of the following is the impact of Government policy changes on business and industry?

Increase in competition

The correct answer is option 3- Increase in competition.

Increase in competition is the impact of Government policy changes on business and industry.

As a part of government policy in modern times, firms are now facing competition not only from existing players and new local entrants but also from the multinational competitors.

Changes in government’s economic policies, rapid technological developments, political uncertainty, changes in fashions and tastes of consumers and increased competition in the market — all influence the working of a business enterprise in important ways.
* Increase in taxes by government can make things expensive to buy.
* Technological improvements may render existing products obsolete.
* Political uncertainty may create fear in the minds of investors.
* Changes in fashions and tastes of consumers may shift demand in the market from existing products to new ones.
* Increased competition in the market may reduce profit margins of firms.