Question

State with reasons whether the following statements are True or False.

Liberalization refers to a set of measures and reforms aimed at the creation of an open economy.

Answer 1

Liberalization refers to a set of measures and reforms aimed at the creation of an open economy- True

Explanation:
Liberalization refers to freeing the economy from direct or physical controls, such as industrial licensing, price controls, import licences, etc. imposed by the government. In this regard, following measures and reforms were adopted by the government to create an open economy:
i. Licences required for the establishment of certain industries were abolished.
ii. Enterprises gained freedom in deciding the scale and size of production and the price of their products.
iii. Restrictions were removed on the movement of goods and services.
iv. Procedures regarding exports and imports were relaxed.