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

Legislation encompasses a range of laws and regulations established by governments to oversee and manage economic activities. When crafted to favor domestic entities, it can serve as a protective measure against entering businesses from abroad.

For instance, if the Indian government were to introduce legislation that imposes stricter regulations on ridesharing businesses operated by foreign companies, it would level the playing field for domestic operators like Ola. This may include requirements for local partnerships or specific safety standards tailored to Indian markets.

Such measures would not only create a more favorable environment for Indian companies but also prevent potential overreach by foreign players. However, it's important to note that ridesharing cannot simply be protected through tariffs or quotas, as this may lead to adverse economic consequences. Therefore, emphasizing local cooperation through legislation could benefit Indian ridesharing services.