Q. 175.0( 2 Votes )
‘Globalisation can’t be successful without liberalisation.’ How?
Globalisation is the interconnection between counties through the expansion of foreign trade and foreign investment. It is the process of integrating the home country with the foreign countries through the movement of goods, services, investment, technology and people. Globalisation is the driving force of the 21th century.
Globalisation became a success only because of liberalisation of the economy. Liberalisation is the removal of all the barriers and restrictions set by the government. Government uses barriers to decide on the quantity of imports and exports in the economy. But the barriers restricted the flow of investment and commodities to the domestic market. The removal of these barriers has resulted in the inflow of huge investment and the establishment of many new companies by MNCs. It has expanded the markets and widened the choice of consumes. Integrating the home economy with foreign economies on the one hand, but imposing many restrictions on MNCs on the other would have only restrictive impacts on the economy.
Thus, globalisation would have been an utter failure if the economy was restricted and controlled by many rules and regulations. Liberalisation of both trade and investment has thus enabled globalisation.
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