Question

What are the essential features of:-
(a) Liberalisation
(b) Privatisation
(c) Globalisation

Answer 1

Features of Liberalisation :

(i) Freedom of opening/starting production units.

(ii) Use of new machines and technology.

(iii) No government interference in production.

(iv) Free flow of foreign investment.

Features of Privatization:

(i) Reduction in extra burden on government.

(ii) Control over poor performance of public sec-tor.

(iii) Check on high-handedness of bureaucracy.

(iv) Disinvestment (sale of shares in PSUs to

public)

Features of Globalization:

(i) It results in integration of world economies that

helps in raising world production.

(ii) It helps in removing inefficiency from industrial

units.

(iii) It helps in improving allocative efficiency of

resources.

(iv) It encourages global competition which reduces

costs and improves quality.