3. Reread the Country Focus “India’s Economic Transformation,” 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?

 

b. How might widespread public ownership of businesses and extensive

 

government regulations have affected (i) the efficiency of state and

 

private businesses and (ii) the rate of new business formation in India

 

during the 1947–1990 time frame? How do you think these factors

 

affected the rate of economic growth in India during this time frame?

 

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 period?

 

 

 

d. India now has pockets of strengths in key high-technology industries

 

such as software and pharmaceuticals. Why do you think India is

 

developing strength in these areas? How might success in these

 

industries help generate growth in the other sectors of the Indian

 

economy?

 

 

 

e. Given what is now occurring in the Indian economy, do you think the

 

country represents an attractive target for inward investment by

 

foreign multinationals selling consumer products? Why?