What do you understand by the liberalisation of foreign trade?

1.	What do you understand by the liberalisation of foreign trade?
Answer» 1. The Indian government, after independence, had put barriers to foreign trade and foreign investment. 2. This was necessary to protect from foreign competition. 3. Around 1991, the government decided that the time had come for foreign competition. 4. So, barriers on foreign trade were removed to a large extent. 5. Goods can be exported and imported easily. 6. Foreign companies could set up factories and offices here. 7. This removing of barriers set by the government is liberalisation. (OR) Removing barriers or restrictions set by the government on foreign trade and foreign investment is known as liberalisation of foreign trade.

Answer»

1. The Indian government, after independence, had put barriers to foreign trade and foreign investment.

2. This was necessary to protect from foreign competition.

3. Around 1991, the government decided that the time had come for foreign competition.

4. So, barriers on foreign trade were removed to a large extent.

5. Goods can be exported and imported easily.

6. Foreign companies could set up factories and offices here.

7. This removing of barriers set by the government is liberalisation.

(OR)

Removing barriers or restrictions set by the government on foreign trade and foreign investment is known as liberalisation of foreign trade.

Discussion