Question

Difference between globalization and liberalization

Answer 1

Answer:

Economic Liberalization :

Government gradually reduces the restrictions and controls imposed on private sector and encourages economic development.This is known as economic liberalization.

Globalization :

Globalization is the process of connecting one country economy with the world economy.As a result of which flow of goods,services,technology and labour is easily available in the world.

Advantages of Liberalization :

• As a result of liberalisation,private sector has got an opportunity to make an unconstrained development which led to increase in production .
• Internal infrastructural facilities increased due to liberalization .
• Because of the increase in foreign trade there has been increase in reserve of foreign exchange.

Advantages of Globalization :

• Foreign Direct Investment (FDI) is encouraged due to globalisation.
• Goods produced in developed countries can easily be obtained due to globalisation .
• Developing countries like India can withstand competition at international level due to globalisation .