Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Why has competition increased for Indian firms in industries like telecommunications, airlines, banking, and insurance?

Options:

Government intervention

Technological stagnation

Entry of foreign firms

Decreased customer demand

Correct Answer:

Entry of foreign firms

Explanation:

Changes in the rules of industrial licensing and entry of foreign firms, competition for Indian firms has increased especially in service industries like telecommunications, airlines, banking, insurance, etc. which were earlier in the public sector.