question_answer

Do you agree that all sections of people have benefitted from the liberalization policy in India? Justify your answer with example.

Answer:

Liberalisation means economic reform.

1. Liberalisation means the steady removal of the rules that regulated Indian trade and finance regulations. The basic assumption was that greater integration into the global market would be beneficial to Indian regulations.

2. The Transnational Co-operations (TNCs) are the companies that produce goods or market services in more than one country. These may be relatively small firms with one or two factories outside the county in which they are based. They could also be gigantic international ones whose operations cris-cross the globe, example: Coca-Cola, General Motors etc.

3. Banks, corporations, funds managers and individual investors are able to shift funds internationally with just one click of a mouse. Such transactions are possible only because of the communication revolution. No paper work, no paper currency are required. Example: NASDAQ.

4. Globally integrated financial markets undertake billions of dollars? worth transanction within the seconds in the electronic circuits. There is a 24 hours trading in capital and security markets. Citites such as, New York, Tokyo and London are the key centres for financial trading. In India, Mumbai is known as the financial capital of the country.