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Shumeet K Grewal
Liberalization of economy means to free it
from direct and physical controls imposed by
the Govt. ( such as industrial licensing, import
licensing, foreign exchange control,
restrictions on investment etc)
Shumeet K Grewal
Measures taken for liberalization
Shumeet K Grewal
PRIVATISATION
Shumeet K Grewal
Privatization means allowing the private sector
to set up more and more industries that were
previously reserved for public sector.
Shumeet K Grewal
Ways of privatization
Sale of Enterprise
Joint venture
Disinvestment
Holding company structure
Leasing
Shumeet K Grewal
Causes of privatization
Shumeet K Grewal
Benefits
It reduced financial burden of the govt.
Enabled govt. to collect funds
Helped in trimming the size of administrative
machinery.
Helped govt. to concentrate on more essential
matters
Results in better management of enterprises.
Helps to increase the pace of economic
development.
Shumeet K Grewal
Disinvestment Policy
Shumeet K Grewal
2nd Phase
Shumeet K Grewal
Arguments against
Shumeet K Grewal
GLOBALISATION
Shumeet K Grewal
Globalization is defined as the growing
economic interdependence of countries
worldwide through increasing volume and
variety of cross border transactions in goods
and services and of international capital flows,
and also through the more rapid and
widespread diffusion of technology
Shumeet K Grewal
Globalization encompasses
Doing or planning to expand business globally.
Giving up distinction between the domestic and foreign
market.
Manufacturing of goods in any part of the world on the
basis of feasibility.
Outsourcing of goods and services.
Basing product development and planning on global
market considerations.
Global sourcing of factors of production i.e. raw
material, technology etc
Shumeet K Grewal
Factors favoring globalization
Human Resources.
Wide base
Growing Entrepreneurship
Growing domestic market
Niche marketing
Competition
Economic liberalisation
Shumeet K Grewal
Obstacles to globalization
Govt. policy and procedures
High costs
Poor infrastructure
Obsolescence
Resistance to change
Poor quality image
Small size
Lack of experience
Limited R & D
Trade barriers
Shumeet K Grewal