Globalization is the outcome of liberalisation and privatization strategies. Explain. 


Globalisation is the outcome of liberalisation and privatisation. Globalisation is the result of different policies whose aim was to make linkages between the different economies in the world and to integrate them. The focus of globalisation was to make links in the manner that the activities which take place in India get affected by the activities performed in the other nations. ‚ÄčLiberalization means the opening of the country for foreign investments and capitals.  Trade barriers are often used by countries to protect the domestic industries from the products of foreign land. Usually countries resort to impose Licenses, Import quotas or Voluntary export restraints to protect local markets. However after liberalization organizations like the WTO attempted to reduce production and consumption distortions created by tariffs. Free trade benefits consumers through increased choice and reduced prices. On the other hand free flow capital ensures that any country can make investments in the alien land. This only increases the possibility of generating more employment which in turn enhances the revenue generation of the country. Organizations like ASEAN aim Free flow of goods, services, investment, capitals and skilled labor. These steps has improved global integration and brought about  globalization. 

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