Question

How has liberalisation of trade and investment policies helped the globalisation process?

Answer 1

Removing barriers or restrictions set by the government is known as liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes less restrictions than earlier. Companies are able to set up plants in developing countries where policies in favour of liberalisation of trade and investment are undertaken which led to rise in the process of globalisation. liberalisation of trade and investment policies facilitated free market i.e. free movement of labour - capital - goods. It enables integration of global economics i.e. helped the process of globalisation