Advantages Of Trade Liberalisation

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After the introduction of the trade liberalisation policies in the developing countries across the globe issues of international trade and economic growth have gained much importance. The act of buying and selling goods and services is called trade. Trade exists between countries. Industrialisation, globalisation, increase in growth of multinational companies etc., all lead to need of trade between countries. This is referred to as International trade. The removal of trade restrictions that exist between countries which ultimately leads to free flow of goods and services is called trade liberalisation. Trade liberalisation includes removal of tariff and non tariff barriers such as surcharges, duties, export subsidies, quotas, licensing regulations etc. Trade liberalisation mainly started after the World War II when the government decided to remove import restrictions and export subsidies. The government was motivated and believed that reducing the trade restrictions would increase the volume of trade, increase living standards and thereby promote economic growth. When talking about India, the foreign trade is administered by the ministry of commerce and…show more content…
The 1980’s witnessed further intensification of liberalisation measures as many countries retreated from socialism, regulation and planning. ISP’s disadvantages, the potential strengths of outward oriented policies and the conditions necessary for successful transition from an inward oriented regime to an outward oriented regime have been extensively researched. This research is very influential since international agencies such as the World Bank and the international monetary fund are making domestic policy and trade reform a major condition for granting

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