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Explain one way the Indian government might use legislation to protect the Indian ridesharing market from non-Indian businesses. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Question 2
Explain one way the Indian government might use legislation to protect the Indian ridesharing market from non-Indian businesses.
Worked Solution & Example Answer:Explain one way the Indian government might use legislation to protect the Indian ridesharing market from non-Indian businesses. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Step 1
Step 2
Legislative Measures
Answer
Legislation, in this context, is the collective framework of laws and regulations enacted by governments to regulate economic activities and maintain fairness in the market. The Indian government could create laws that specifically benefit domestic ridesharing companies, like Ola.
Step 3
Contextual Example
Answer
One way the Indian government might legislate to protect the local ridesharing market is by imposing restrictions on foreign companies like Uber. For instance, the government could limit foreign investment in the ridesharing sector, which would help domestic companies maintain a competitive edge.
Step 4
Analysis of Implications
Answer
Furthermore, the legislation could address safety regulations specific to ridesharing services, ensuring that all companies adhere to the same standards, thus leveling the playing field. This aims to safeguard the interests of local businesses against exploitative practices by foreign firms.