Liberalization and unification of world economy

By Surbhi Seth 030 IBM

WHAT IS LIBERALIZATION
Liberalization means relaxation of various government restrictions in the areas of social and economic policies.
Liberalizing trade policy by the government that is removal of tariff, subsidies and other restrictions on the flow of goods and services between countries is also termed as liberalization.

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.

Economic liberalization may be described as the freedom to engage in economic activity at home and abroad, a freedom subject to institutional and policy constraints needed to guarantee public interests at large.

COMPONENTS OF LIBERALIZATION
LIBERALISATION contains two components.
Allow

the private sector to run those activities which were restricted earlier only to public sector.
Relaxation

of rules and regulations which were restricted to the growth of private sector.

UNIFICATION OF WORLD ECONOMIES

The increasing unification of the world's economic order through reduction of such barriers to international trade as tariffs, export fees, and import quotas. The goal is to increase material wealth, goods, and services through an international division of labor by efficiencies catalyzed by international relations, specialization and competition.

It describes the process by which regional economies, societies, and cultures have become integrated through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence.

MOVEMENT TOWARDS UNIFICATION

The drive for World Unification is embodied by the increasing cooperation and dependency between governments. Unification can potentially lead to a single council representing everybody with certain jurisdictions and responsibilities. The amount of cooperation, dependency responsibilities and power of such a body can be used a benchmark to measure the unification ratio.

Thank you!!!