What Is Liberalisation and Its Effects?
What Is Liberalisation and Its Effects?
Liberalisation refers to a relaxation of government restrictions in the areas of social, political and economic policies. The effects of liberalisation can be the following
Reduced political risk for investors: When liberalisation policies are introduced, it will reduce the political risk for the investors which will result in inflow of foreign direct investment, which will boost the foreign reserves of the country.
Improved stock market performance: Due to relaxation in trade and business rules and regulations, there will be a surge in stock market performance.
Diversification for Investors: In an liberalised economy, the investors are able to invest their capital in diverse asset classes.
Improvement in Industrial growth: Liberalisation will set the tone for industrial growth of a nation as industries can use foreign investments and also benefit from foreign technology.
Also see:
Liberalisation refers to a relaxation of government restrictions in the areas of social, political and economic policies. The effects of liberalisation can be the following
Reduced political risk for investors: When liberalisation policies are introduced, it will reduce the political risk for the investors which will result in inflow of foreign direct investment, which will boost the foreign reserves of the country.
Improved stock market performance: Due to relaxation in trade and business rules and regulations, there will be a surge in stock market performance.
Diversification for Investors: In an liberalised economy, the investors are able to invest their capital in diverse asset classes.
Improvement in Industrial growth: Liberalisation will set the tone for industrial growth of a nation as industries can use foreign investments and also benefit from foreign technology.
Also see:
