Identifying Factors Slowing Infrastructure Growth
The growth of infrastructure projects can be significantly influenced by various economic and political factors. Understanding which factors hinder development is crucial.
Analysis of Hindering Factors
- High level of perceived political risk: Uncertainty regarding government stability, policy changes, or regulatory environments deters investment, leading to slower infrastructure development.
- High probability of time and cost over-run: Projects that are likely to exceed their budget and schedule increase financial risks for investors and developers, discouraging new undertakings.
- High level of sunk cost: While sunk costs represent past expenditures, a sector with substantial sunk costs might indicate saturation or past challenges, potentially slowing down *new* investment and growth, although it's less direct than risk or overruns.
Role of Competition in Infrastructure
The introduction of competition in all sectors generally acts as a catalyst for growth and efficiency, rather than a deterrent. Competition encourages innovation, better service delivery, and potentially lower costs, which can accelerate infrastructure development. It drives companies to become more efficient and responsive to market needs, fostering expansion and improvement.
Therefore, competition is not a direct factor responsible for slowing down the growth of infrastructure; instead, it often promotes it.
Important Questions from Business Environment
- The Micro-Economic environment deals with the operations of the firm in __________.
- Which of the following are "work-family conflict" faced by women?
a. Time based conflict
b. work conflict
c. Inter personal conflict
d. Behaviour based conflictChoose the correct answer from the options : - Assertion (A) : Buyers, for several industries, are potential competitors-they may integrate backwards.
Reasoning (R) : They have different degrees of bargaining power.
Code : Match List - I with List - II relating to the roles played by government in an economy and indicate the correct code of their matching.
List - I (Roles) List - II (Examples) (a) Regulatory role (i) Deciding timing and usage of resources (b) Promotional role (ii) Capital intensive projects of public sector (c) Entrepreneurial role (iii) Imposing of high import duty (d) Planning role (iv) Measures to control and cover risk in priority sectors - From the following statements of Assertion (A) and Reasoning (R), indicate the correct code :
Assertion (A) : Industrial liberalisation became an imperative condition for the growth of forces of competition leading to high efficiency and productivity in Indian industries.
Reasoning (R) : Industrial development and curbing of poverty is only possible through government intervention.
