The Market as a Social Institution

The Market as a Social Institution

Question

What is meant by liberalisation?

Answer

liberalisation is a policy that comprises privatisation of public sector enterprises (viz selling government-owned companies to private companies), loosening of government regulations on capital, labour and trade, reduction in tariff and import duties so that foreign goods can be imported more easily. This includes allowing easier access for foreign companies to set-up industries in India. In briefs, this change can be stated as marketisation or laissez-faire (alone or let it be or free market) the term coined by Adam Smith, the father of economics. It is use of market-based processes, free from government control or policies to extract solution of problems in society, politics and economy. These processes advocate complete deregulations.

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