Question
What is liberalisation? Describe any four effects of liberalisation on the Indian economy
Solution
Liberalisation means the opening of the country for foreign investments and capitals. Trade barriers are often used by countries to protect the domestic industries from the products of foreign land. Usually countries resort to impose Licenses, Import quotas or Voluntary export restraints to protect local markets.
- Producers: Tough competition faced by the producers in the native country by the producers of foreign markets
- Workers: Job insecurity, denial of fair share in the benefits brought about by globalisation.
Other impacts:
- Increase in the foreigh trade
- Increase in foreign investment
- exchange of technology between countries.
- Better means of communication have developed alongside globalization
- Better job opportunities for people gave rise to migration
