Distinguish between Inducive and restaining control.

Inducive Controls.

Government measures of control may have inducive effects on business, objective is to stimulate, facilitate or induce a particular type of trade or activity through financial and technical assistance, tax concessions, subsidy, protection against foreign companies, bank credit etc.

Restaining Controls.

Certain measures that aim at restricting the private trade and industry by legal enactment and administrative orders have restaining effects on business. For example control over capital issues, fixation of maximum price, licensing required for starting or expanding industries etc.


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