Question

What does liberalization imply in an economic context ?

• A. Increased government control over economic activities.
• B. Privatization of all public sector enterprises.
• C. Relaxation of government control and influence over economic activities.
• D. Abolition of all foreign investments.

Answer 1

Answer:

C. Relaxation of government control and influence over economic activities.

Liberalization

• Liberalization implies the relaxation of government control and influence over the economic activities in a country The process of liberalization was started in India in 1985. Mentioned below are the changes that were brought about as a result of liberalization.

• Relaxation of control in setting up industries.

• Reduction of import tariff and tax

• Changes in foreign exchange rules

• Abolition of market control

• Permission of foreign investment in many sectors.

• Reduced the role of government in the basic industries and basic infrastructure development