Liberalisation, Privatisation And Globalisation : An Appraisal

Question 25
CBSEENEC11008852

Why are tariffs imposed?

Solution

To keep a check on the growth of imports, tariffs are imposed.

Question 26
CBSEENEC11008853

What do you understand by free flow of capital?

Solution

A more liberal and productive foreign investment policy has been initiated to attract more foreign direct investment. That is why there is no restriction on flow of capital from one country to another.

Question 27
CBSEENEC11008854

What is strategic sale?

Solution

The sale of goods related to war material is called strategic sale. Such type of commodities are under the government control in India.

Question 28
CBSEENEC11008855

What is the meaning quantitative restrictions?

Solution

The restrictions related to the quantity of goods purchased from other countries as in the case of readymade garments where USA is using these restrictions while purchasing from India and China.

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