Question

State whether the following statement is True or False:
Privatisation and globalisation are components of economic liberalisation.

• A. True
• B. False

Answer 1

The correct option is A True

A. True

There are three components of economic liberalization, viz. liberalization, privatization and globalization. Privatization refers to the increase in the dominating role of the private sector and decrease in the role of the government sector. The government companies can be converted into private company by way of disinvestment or by the withdrawal of government ownership and management in the public sector companies.

Globalization refers to the integration of the economy of one country with the global economy. Globalization focuses mainly on the foreign trade and private and institutional foreign investment.