Q.Discuss the national and global objectives of business.

National objectives concern a business's contribution to the country, while global objectives concern its role and reputation beyond national borders.

Section 5 sets out two related sets of objectives that look beyond the individual business's own stakeholders — towards the nation, and towards the wider world.

National objectives:

1. Contribution to national income (GDP) — the goods and services a business produces add directly to the country's Gross Domestic Product.
2. Generation of employment on a national scale — businesses across the country cumulatively reduce unemployment.
3. Generation of government revenue — businesses pay direct taxes on income/profit and indirect taxes (such as GST) that fund public services.
4. Promotion of self-reliance — manufacturing domestically using local resources and technology reduces dependence on imports.
5. Balanced regional development — locating units in less-developed or rural regions, not only industrialised cities, spreads economic opportunity more evenly.

Global objectives:

1. Increasing exports — selling abroad earns valuable foreign exchange and expands the business's market beyond domestic limits.
2. Improving global competitiveness — producing goods and services that can genuinely compete with the best available internationally.
3. Technology transfer — international trade and collaboration bring newer technology into the country, and let Indian innovations reach the world. …