Question
Liberalisation and Globalisation

Answer

Sr. No.LiberalisationGlobalisation
(i)Meaning: Liberalisation refers to the removal of undue restrictions and eliminations of bureaucratic controls on productive activities and paves the way for economic development.Meaning: Globalisation refers to the integration of the domestic economy with the world economy.
(ii)Liberalisation is a means to achieve globalisation.e.g. reduction in tariff is a liberal measure.Globalisation can be realised through external liberalisation.
e.g. if the tariff is reduced, transfer of resources, goods, etc., can be made easier.
(iii)Effect: Liberalisation has given a boost to foreign trades.Effect: Globalisation has led to the increase in foreign direct investment and technical collaboration.
(iv)Manifestations: Abolishing industrial licenses, scrapping the MRTP limit, etc., are the measures adopted to liberate the Indian economy.Manifestations: Relaxing the FEAR/FEMA regulations, eliminating the trade barriers, providing tax concessions and other incentives to the foreign investors.

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