Question

Impact of Liberalization, Privatization, and Globalization
on ssi​

Answer 1

Answer:

LIBERALIZATION, PRIVATIZATION AND GLOBALIZATION AND ITS IMPACT ON INDIAN ECONOMY NIP (LPG) . LIBERALIZATION Liberalization means elimination of state control over economic activities It is commonly known as free trade. It implies removal of restrictions and barriers to free trade.

Answer 2

Answer:

Some of the consequences of liberalisation have been briefly described here:

• 1. Increase in the Direct Foreign Investment: The policy of liberalisation has resulted in a tremendous increase in the direct foreign investment in the industrial and infrastructural sector (roads and electricity).

• 2. Enhancement in the Growth of GDP: There is a significant growth in the Gross Domestic Product (GDP). Prior to the liberalisation, the growth rate of GDP was around 4 per cent which rose to around 10 per cent in 2006-07.

Impacts of Privatization

• Privatization brings about radical structural changes providing momentum in the competitive sectors
• Privatization leads to adoption of the global best practices along with management and motivation of the best human talent to foster sustainable competitive advantage and improvised management of resources.
• Privatization has a positive impact on the financial health of the sector which was previously state dominated by way of reducing the deficits and debts .
• The net transfer to the State owned Enterprises is lowered through privatization.

Impacts of Globalisation:-

Economic:-

Breaking down of national economic barriers

International spread of Trade, Financial and productive activities

Growing power of transnational cooperation and International financial Institutions(WTO, IMF)Through the process of:-

1- Liberalization- relaxation of restrictions, reduction in role of state in economic activities,decline in role of govt in key industries, social and infrastructural sector.

2- Privatization- Public offering of shares and private sale of shares, entry of private sector in public sector and sale of govt enterprises.

3- FDI

4- International regulatory bodies(WTO,IMF)

5- MNC’s

6- Infrastructural development

7- Expansion of information and communication technology and birth of information age.

8- Outsourcing of services- ie BPO and Call Centres.

9- Trade related intellectual property rights(TRIPS)- product based patent rather than process based.