Liberalization ,privatization

globalization in marketing
Submitted by
Sherhabeel c
Mba (da)
19401007
Liberalization
 Liberalization is a very broad term that usually refers to
fewer government regulations and restrictions in the
economy.
 Liberalization refers to the relaxation of the previous
government restriction usually in area of social and
economic policies. When government liberalized trade , it
means it has removed the tariff ,subsidies and other
restriction on the flow of goods and services between the
countries.
The path of liberalization
 Relief for foreign investors
 New industrial policy
 New trade policy
 Removal of import restrictions
 Freedom to import technology
 Privatization of public sector
 MRTP relaxation
 Devaluation of Indian rupees
Advantages
 Industrial licensing
 Increase the foreign investment.
 Check on corruption.
 Reduction in dependence on external
commercial borrowings
Disadvantages
 Increase in unemployment
 Loss to domestic units.
 Increase dependence on foreign nations
Privatization
Privatization means transfer of ownership and/or
management of an enterprise from the public sector to the
private sector .It also means the withdrawal of the state from
an industry or sector partially or fully.
Privatization means replacing government monopolies with
the competitive pressures of the marketplace to encourage
efficiency, quality and innovation in the delivery of goods
and services.
Different ways in privatization
 Liberalization Approach
 Relative Share Enlargement Approach
 Transfer of Complete Ownership Approach
 Transfer of Minority Equity Ownership Approach
 Association of Private Sector Management Approach
Advantages