how globalization affected liberalisation
Answers
According to Herman E Daly, Globalization serves the villous of a single, cosmopolitan, integrated global economy. This definition focuses on the cross border movement of goods, services and resources (financial and human) impacting on the domestic and global assets and employment. Globalization, thus focuses on an integrated economic world in which the economy is a single market characterized by trade and Investment flows, cross border economic activities In production, Investment financing, movement of capital, technology, labor, Internationalization of consumption, capital, and services.
Economic liberation's is the gateway of globalization and financial liberation plays the most crucial role in integration of one neutron economy on the global economic network. However, very often the term liberation's and globalization are used simultaneously. Important instruments of liberation's are regulation of financial market to allow foreign capital, foreign investment, to and fro flow of capital etc. Reduction of tariff and non-tariff barriers of trade, simplifications of customs measures etc.
For successful global Integration a country must move to economic liberalizing by dismantling entry barriers and Licensing system, reduction in physical restrictions on imports, reduction in control n capital and current account, reforming financial system and opening up financial market to private (domestic and foreign) players, removing controls on foreign capital (FDA and portfolio) flow to the country etc. Globalization however, Is not a new phenomena of the current world activities.