"Liberalization" is the process of decreasing governmental controls and regulations in an economy in return for
greater private sector participation.
It simply means giving an opportunity to the markets to move and operate without any interferences of the
government but not totally. It’s like giving the markets an open access to contribute to the economy without the
government’s involvement.
Global integration, on the other hand, is the process by which specific local markets allow the world or the global
economy to have an impact on a specific local business environment. It also refers to lessening governmental
restrictions and emphasizing the market's freedom from interference.
Global integration, when we say integration, it means combining two or more things in an effective way. When we
say global integration, it refers to having our local markets join the global economy in which that is like what is
globalization is all about right. It is the integration of market with the global economy and it's about how the world
economy influences and interacts with local businesses while reducing government involvement in the market.
Globalization and Liberalization are interconnected. Liberalization is a prerequisite for countries to fully benefit
from globalization, and globalization has contributed to the promotion of liberalization in developing countries.
Now, let's break down the statement:
"Liberalization is a prerequisite for countries to fully benefit from globalization."
This means that in order for a country to take full advantage of the opportunities that globalization offers, it needs to
embrace liberalization. By reducing restrictions and barriers to trade and investment, countries can more effectively
participate in the global economy.
"Globalization has contributed to the promotion of liberalization in developing countries."
This part of the statement highlights that the process of globalization itself has played a role in encouraging
developing countries to adopt liberalization policies. When these countries see the benefits of being part of the
global economy, such as access to larger markets and foreign investment, they often decide to liberalize their
economies by reducing trade barriers and regulations.
In simpler terms, globalization and liberalization go hand in hand. To fully benefit from globalization, countries need
to open up their economies and embrace liberalization. At the same time, the process of globalization often
encourages countries, especially developing ones, to become more liberalized in order to participate more effectively
in the global economic system.
The opening of national markets, increasing production integration, and expanded activities of multinational
companies (MNCs) are all considered to be aspects of globalization, according to the article. According to some,
national markets are being supplanted by global markets as the international economy merges more and more.
The natural strategic horizon for major firms, investors, and speculators is thought to be the global markets.
This statement discusses globalization and the global integration of markets. It highlights how national markets are
becoming more interconnected and integrated due to factors such as multinational companies' expanding
operations. Some experts believe that global markets are replacing national ones as the international economy
becomes increasingly unified. This shift is causing major companies, investors, and speculators to focus more on
global markets as their primary strategic arena.
In order to improve the integration of the two or more economies, both expressions, globalization and
liberalization, hint to loosening social and economic policies. Globalization and liberalization, which enable
flexibility and deeper integration, are necessary for a thriving economy.
This statement suggests that to enhance the merging of two or more economies, the concepts of globalization and
liberalization are crucial. Globalization refers to increased interconnectedness between countries, while liberalization
involves reducing restrictions on economic and social policies. Both these ideas promote economic flexibility and
deeper integration, which are essential for a successful economy. In essence, the statement underscores the
importance of open economies and policies that foster international cooperation and economic growth.
