Question

What do you mean by liberalization?

• A. Removing trade barriers
• B. Adding more trade barriers
• C. Protecting domestic industries
• D. Closing domestic economy

Answer 1

The correct option is A Removing trade barriers

1:Economic liberalisation refers to those government policies which promote economic growth by opening up trade to international markets, extending the use of markets and lessening the restrictions and regulations placed on business.
2:Economic liberalisation does not always come without its drawbacks. Domestic companies may face difficulties in competing with foreign companies once the international trade barriers are removed.
3:There is also the risk of brain drain and the environmental degradation that can follow in the wake of deregulation.
4:Many developing third world countries, however, view economic liberalisation as an approach for which there is no alternative.