significance of liberalisation in four point
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Liberalization (or liberalisation) is any process whereby a state lifts restrictions on some private individual activities. Liberalization occurs when something which used to be banned is no longer banned, or when government regulations are relaxed. Economic liberalization is the reduction of state involvement in the economy.
In law
In economy and trade
Comparison with democratization
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significance of liberalisation :-
- Economic liberalization is generally thought of as a beneficial and desirable process for emerging and developing countries.
- The underlying goal of economic liberalization is to have unrestricted capital flowing into and out of the country, boosting economic growth and efficiency.
- After liberalization, a country will benefit politically from the stability incurred from foreign investment, which works almost as a 'board of directors' for the emerging country.
- These countries are considered high-risk in their beginning stages, but that doesn't deter significant investment from institutional investors who want to get in first.
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