Group Discussion topics on Business and Economy

Business is defined as the activity of earning money to make a living by buying and selling products. The difference between the selling price and cost price of a product is termed as profit.

The people further use the product and services to fulfill their needs. An economy is defined as the set of goods and services, production, trade, and distribution in a nation.

Let's discuss the group discussion topics on business and economy.

Is India the most corrupted nation?

Is an MBA (Master of Business Administration) is essential to be successful in business?

Demonetization in India

Are the charges of ATM cash withdrawal high?

Is Cryptocurrency helpful for the business?

Is corruption affecting the Indian economy?

Do imports and export affect the economy of India?

Is India the most corrupted nation?

The rank of India is 86 among the 180 countries. The country with 1st rank is the least corrupted country, and the country with rank 180 is the highest corrupted country in the world. Position 1 is Denmark, while South Sedan is considered one of the most corrupted countries.

The score of India in the corruption index is 40.
Denmark has the highest score of 88, while South Sedan has the lowest score of 13.
In 2018, India's rank was 80, but later it slips to the rank of 86.
Various factors, such as legislation, politics, traditions, customs, habits, economic environment, etc., determine the country's corruption.
Denmark has minor corruption due to the following factors:
- Right to information about public expenditure.
- The high degree of press freedom.
- Independent judicial system.
- Well-functioning public sector.
- A safe and stable environment
It is the country that has maintained its 1 rank for continued five years. It is also the country best suited for business.
The CPI (Corruption Perception Index) is released worldwide that predicts the rank of the countries in corruption. It gets updated every year.
India has rank 86 due to the following factors:
- Complicated tax system
- Lack of transparent laws
- Lack of protection
- Various government departments
- Opaque discretionary powers

Is an MBA (Master of Business Administration) is essential to be successful in business?

Though MBA can help us understand business concepts better, it is not essential to succeed in business.

Around 50-60% of CEOs of the country are not MBA qualified. It depends on the thinking ability, skills, decision-making, managerial skills, etc., to become successful.
MBA can be an essential requirement for start-ups, but it is not necessary to get started with the business.
An MBA degree has various benefits, such as job security, high packages, etc. Hence, most of the candidates opt to pursue it.
The other basic requirements to start a business are teamwork, passion, idea, perseverance, and handling risk. Every business involves some risk. We can opt for a backup plan in case of failure to protect us from such risks.
An MBA degree helps to avoid some unnecessary risks, but it does not ensure a successful business.
The skills help a person to start from a zero level to a high. It can be a passion, desire, confidence, idea, ready to take risks, perseverance, etc.

Demonetization in India

Demonetization is defined as the act of the change in national currency. It is carried out to reduce the power of black money and criminal activities.

Demonetization results in a shortage of currency due to exchange of cash notes.
The prior currency is not considered as legal after demonetization.
Demonetization is a critical step by the government. Its improper use can disrupt the country's economy.
The disadvantages of demonetization include increase chaos among people, high expenditure on printing new currency, and corruption.
India recently observed its demonetization on 8^th November 2016. The government announced the ban of rupees 500 and 1000 notes and introduced the new currency notes of 500 and 2000. A bit later, rupees 100, 200, 50, 10, and 20 notes were also introduced.
The new currency notes were given in exchange for the old currency. The currency at that time was exchanged by the respective banks, airports, etc.
The deadline to exchange the notes was given by 30^th December in order to eliminate the black currency.
India observed its first demonetization on 12^th January 1946. It was passed by the Governor of India.
Other demonetization years in India were 1949, 1961, 1978, and 1991.
The demonetization step in 016 was taken by Narendra Modi, the Prime Minister of India.

Are the charges of ATM cash withdrawal high?

Customers can withdraw cash with no extra charges upto three times a month. After the 3^rd transaction, he/she is charged Rupees 20 per transaction.

During the covid situation in India in 2020, the transaction charged was removed upto three months. The Finance Minister also announced the removal of the penalty for non-maintenance of the minimum balance for three months.
Today, most banks offer an online bank service for users to track their transactions online.
In case of lack of internet facility available, bank also provided the facility of SMS or miss call to a particular number to inquire about the balance left in their account.
Hence, we can say that the charges of ATM cash withdrawal are generally high. The bank has a lower interest rate for various services, such as home loans, education loans, etc. Hence, as a VAT (Value Added Tax) bank charges extra rupees for the increased number of transactions than the given limit.

Is Cryptocurrency helpful for the business?

Crypto currency is a type of digital currency. It is considered as one of the choice of making investments.

It does not require any bank to verify the transaction. Cryptocurrency in the form of Bitcoins is now accepted by most companies, organizations, banks, etc., as a type of investment. Bitcoins store value and is a type of asset. It is the most used Cryptocurrency today.
It provides funds security and reduces the chances of fraud.
Despite the covid pandemic, Cryptocurrency is still on the rise. It is determined by the user's demand and its utility.
The Cryptocurrency exchange is also one of the methods to invest and exchange.
The investment can be made on the mobile, laptop, or desktop. It means that we can access it online.
Cryptocurrency is business has various advantages, such as quick transaction process, saves money as no involvement of bank charges, valid worldwide eliminate fraud and less paper use.

Is corruption affecting the Indian economy?

Yes. Corruption affects the Indian economy in various ways.

At a specific level, corruption can reduce the economic level of the country.
The decrease in corruption might increase the GDP of India by 5% or more.
Denmark is the least corrupted country of the world. Hence, it is considered as the country with the largest net foreign wealth. The rich economy of Denmark attracts investors from various countries.
The corruption in India causes the loss of employment as well as its growth.
The poor section of the country suffers the most in the case of corruption. The increase in corruption results in reduced economic investments, market distortion etc. It further increases the prices of business and other commodities, which affects poverty.
Despite the available of various resources and services, corruption reduces the economic efficiency of the country.

Do imports and export affect the economy of India?

Imports and export affects the country's GDP (Gross Domestic Product), interest rates, and exchange rate. Thus, we can say that import and export do affect the economy of India.

In case of crude oil, India depends 85% on the export. Thus, it is a major factor in the high petrol or diesel prices in India.
The higher export brings a positive impact on the economy. It will bring more funds into the country. But, if the imports are greater than the export, the impact on the India's economy becomes negative.
Consider an example where a country A orders products from country B. Here, the products will be transported from country B to country A. Thus, a country B is exporting its product and country A imports.
Import offers wide range of products and services brought from other countries. Similarly, export from a particular country offers wide varieties of products to the respective country.
The value of imports is subtracted from the GDP. It means that GDP depends more on domestic production. It means that the high imports reduce the country's GDP.