Liberalization Privatization Globalization | Privatization | Foreign Direct Investment

 Economic

liberalization is a very broad term that usually refers to fewer government regulations and restrictions in the economy in exchange for greater participation of private entities.

Liberalization for industrial licensing. Concession from Monopolies Act. Freedom for expansion and production to industries  Increase in the investment limit of the small industries.  Freedom to import the capital goods and raw material.  Freedom to import technology.  Liberalization of export and import transactions.  Liberalization in taxation policy.  Liberalization in capital markets.  Liberalization in banking sector.
  

 Increase  Increase

the foreign investment. the foreign exchange

reserve.  Increase in consumption.  Control over price.  Check on corruption.  Reduction in dependence on external commercial borrowings.

 Increase in unemployment.  Loss to domestic units.  Increase dependence on foreign

nations  Unbalanced development  Increase the imbalances.

Privatization
Privatization is the incidence or process of

transferring ownership of a business, enterprise, agency or public service from the government to the private sector. In a broader sense, privatization refers to transfer of any government function to the private sector including governmental functions like revenue collection and law enforcement.

Measures adopt for privatization.
Contraction of public sectors Sales of shares of public sectors to the private

sector. Sick public sectors industries. Memorandum of understanding National renewal fund.

Advantages of privatization.
Increase in efficiency. Professional management. Increase in competition. In line with international trends. Reduction in economic burden of Govt. Increase in responsibility. Reduction in political interference. Encouragement to new innovations. Increase the industrial growth. Increase the foreign investment. Reduction in public sectors.

Limitations of privatization.
Industrial sickness. Lack of welfare. Class struggle. Increase in inequality. Opposition by employees. Problem of financing. Political pressure. Increase in unemployment. Ignores the weaker sections. Ignores the national importance.

Globalization
Globalization describes an ongoing process

by which regional economies, societies, and cultures have become integrated through a globe-spanning network of exchange. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.

Measures adopted for globalization.
Increase the foreign investment. Partial convertibility of Indian rupee. Foreign trade policy. Reduction I tariffs. Export promotion. Freedom to repatriate.

Positive Effects of globalization.
 Increase in foreign trade.  Increase in foreign investment.  Foreign direct investment(FDI).  Increase in foreign collaboration.  Increase in foreign exchange reserves.  Expansion of market.  Technological development.  Brand development.  Development of services sectors.  Development of capital market.  Increase in employment.  Reduction in brain drain.  Improvement in standard of living.

Negative effects of globalization.
Loss of domestic industries. Unemployment. Exploitation of labour. Demonstration effect Increase in inequalities. Dominance of foreign institutions.

Thank You….

Presented By: Shubham Hundet

Sign up to vote on this title
UsefulNot useful