Question

Removing barriers or restrictions set by the government is known as
A) Globalisation
B) Privatisation
C) Liberalisation
D) Fail trade practice

Answer 1

Hint: Government is the political system that governs and regulates a country or community. While all organisations have governance, the term "government" is frequently used to refer to the roughly 200 independent national governments and subsidiary organisations.

Complete answer:
Liberalization is the process of removing government-imposed barriers or prohibitions. When something that was previously prohibited is no longer prohibited, or when government regulations are reduced, liberalisation occurs. It mostly removes limits on some personal activities.

Liberalisation, in simple terms, is the loosening of government constraints in the fields of social, political, and economic policies. Liberalization refers to the loosening of government regulations and constraints to allow for increased engagement by private enterprises in economic policy. It is a method of reducing control systems in order to promote economic growth.

Economic liberalisation began in India in 1991 with the purpose of making the economy more market-oriented and increasing the role of private and international investment. These include partial, and in some cases complete, privatisation of government institutions and assets, expanded labour markets, tax breaks for enterprises, fewer limitations on both local and offshore capital, and the opening of markets for free trade.

Since the adoption of the New Economic Strategy in 1991, the Indian economy has undergone a radical transformation. This has had a huge impact on India's entire way of life. When a country liberalises its economy, the consequences can be severe for both the country and the investors.

Therefore the correct answer is option ‘C’.

Note: India's economic liberalisation refers to the country's economic policies being liberalised with the purpose of making the economy more market-oriented and growing the role of private and international investment.