Step 1: Understanding modernisation.
Modernisation refers to the process of adopting advanced technology, automation, and updated methods to enhance productivity and efficiency.
It involves the replacement of old techniques with new, scientifically developed systems.
Step 2: Impact of modernisation.
The primary objective of modernisation is to improve production processes.
Better processes lead to reduced costs, increased efficiency, and higher quality of output.
Step 3: Analysis of options.
- (1) Products: Modernisation indirectly improves products through better processes.
- (2) Production: It enhances production efficiency but not directly the output level.
- (3) Processes: Correct — modernisation mainly targets production processes.
- (4) Capacity: Refers to expansion, not modernisation.
Step 4: Conclusion.
Hence, modernisation improves processes by upgrading technology and efficiency.