Question

what is liberalization and its advantages

Answer 1

The primary goals of economic liberalization are the free flow of capital between nations and the efficient allocation of resources and competitive advantages. This is usually done by reducing protectionist policies such as tariffs, trade laws and other trade barriers.Liberalisation, privatisation and globalization have many advantages in order to understand its advantages you need to first know about the position of India before the New Economic Policy.

The Government of India decided to adopt protectionist policies once it attained Independence because the government felt that India did not posses the capability to face against the forces of the MNC.

Though in the short- run it was very helpful in establishing industries in many crucial sector, helping small companies to develop themself, creating a base for private firms to invest but in the long run the flaws in this theory was revealed.

Answer 2

HEY MATE HERE IS YOUR ANSWER:-

Liberalisation means relaxation in the restrictions on industries, trade and agriculture and more freedom at international level. in India liberalisation policy adopted in 1991.In general, liberalization refers to a relaxation of government restrictions, usually in such areas of social, political and economic policy. In some contexts, this process or concept is often, but not always, referred to as deregulation.

Advantages
Increased freedom, Increased level of autonomy in running a business, ease of doing business, easy & swift start of an enterprise, startup, Growth in economic activity & in turn increased per capita income, increase in the rate of job creation.


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