What is liberalisation? What are its features?

Liberalization is the removal of trade barriers/restrictions by a government. In India, this was done in 1991. Some of the features of liberalization are:

a. It is integral to the process of globalization

b. Markets have become more interconnected

c. Business can make free decisions about imports and exports

d. As a result of liberalization, there is more competition amongst different companies

e. It has also resulted in greater choice for consumers, as they can choose from goods between different countries.

f. It has lead to the rise in foreign investment and the rise of multinational corportations (MNCs)

g. As a result, production of goods and services has become more dispersed globally.