Political Economy Economic Systems Questions
Economic liberalization refers to the process of reducing government intervention and regulations in the economy, allowing for greater market competition and private sector participation. It involves the removal of barriers to trade, such as tariffs and quotas, as well as the deregulation of industries and the opening up of markets to foreign investment. Economic liberalization aims to promote economic growth, efficiency, and innovation by allowing market forces to determine prices, allocate resources, and drive economic activity. However, it can also lead to income inequality and social disparities if not accompanied by appropriate social safety nets and regulations to protect vulnerable groups.