1.

LIBERALIZATION
2.PRIVATIZATION
3.GLOBALIZATION

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 liberalization

liberalization refers to a relaxation of

previous government restrictions,
usually in areas of social or economic
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ADVANTAGES
 DISADVANTAGES


• Increased likelihood of
• Increased free economic disruptions in
trade between one nation effecting all
nations nations
• Corporate influence of
• Increased liquidity nation-states far
of capital exceeds that of civil
society organizations
allowing and average individuals
investors in • Increased flow of skilled
developed and non-skilled jobs
from developed to
nations to invest developing nations as
in developing corporations seek out
nations the cheapest labor
• Threat that control of world
• Corporations have media by a handful of
greater flexibility corporations will limit
BY;DIVYA KALRA cultural expression
06/04/10
to operate across 3
 TRADE BARRIERS
• This was considered necessary to
protect the producers within the
country from foreign investment.
• Industries were coming up in the
1950’s and 1960’sand competition
from import at that stage would
not have allowed these industries
to come up.


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 After independence
• The government decided that the
time had come for indian
producers to compete with
producers around the globe.
• It felt that competition would
improve the performance of
producers within the country since
they would have to improve the
quality.
• For eg; WTO
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G S O M E T H IN G FR O M P R IV A T E O W N E R S H IP O

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 ADVANTAGES
• 1. It have removed all trade barriers
so imported goods are avaibale at
cheap rates
• disadvantages
• 1. we misuse the liberty for our own
means
• .

•
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 impact
• The low annual growth rate of the
economy of India before 1980, which
stagnated around 3.5% from 1950s to
1980s, while per capita income
averaged 1.3%. At the same time,
Pakistan grew by 5%, Indonesia by
9%, Thailand by 9%, South Korea by
10% and in Taiwan by 12%.
• Only four or five licences would be
given for steel, power and
communications. License owners built
up huge powerful empires.
 A huge public sector emerged. State-
owned enterprises made large losses.
• Infrastructure investment was poor
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 L IS ATI O N
GLOB A
“ the process by which events , activities , and
decisions in one part of the world have
significant consequences for communities
in distant parts of the globe .”
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 ADVANTAGES
• Privatisation places the risk in the hands
of business or Private Enterprise.
• ·Private enterprise is more responsive to
customer complaints and innovation.
• ·The Govt. should not be a player and an
umpire.
• ·Privatisation provides a one off cash
boost for Govt. This can be spent on
Hospitals etc...
• ·Privatisation leads to lower prices and
greater supply.
• ·Competition in privatization increases
differentiation.
• Disadvantages of Privatisation
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 DISADVANTAGES
• 1. The privatised businesses have
sold off or closed down
unprofitable parts of the business
(as businesses normally do) and
so services eg transport in rural
areas have got worse.
• 2.Wider share ownership did not
really happen as many small
investors took their profits and
didn't buy anything else.
3.Privatisation is expensive and
generates a lot of income in fees
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 GLOBALIZATION
Modern Causes:
1) Transportation technology

2) Global media sourcing

3) Communication technology/

Internet
4) Multi National Corporations

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 THANK YOU

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