Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Would the average Indian citizen prefer liberization or protectionism? Why would they choose one over the other?
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Step 1
Economic liberalisation refers to the processes that encourage free trade, such as subsidy reduction, deregulation, price controls, and rationing systems, as well as the downsizing or privatisation of government services. The cumbersome process of acquiring a licence was eliminated as a result of liberalisation. It makes it simple for people to start a new firm in that industry, which benefits the economy by increasing competition and improving the country's performance.
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