Removing barriers or restrictions set by the government is called ........

The correct answer is - Liberalization

Key Points

• Liberalization
  • Liberalization refers to the removal of restrictions and barriers imposed by the government on economic activities.
  • It aims to promote free-market policies and reduce government intervention in trade and industry.
  • Examples of liberalization include the reduction of tariffs, quotas, licensing restrictions, and other regulatory obstacles.
  • It encourages foreign investment and enhances global trade by making markets more accessible.
  • The process is part of broader economic reforms designed to improve efficiency and competitiveness in the economy.

Additional Information

• Investment
  • Refers to the allocation of resources, especially capital, to generate future returns or benefits.
  • While investment is important for economic growth, it is not the same as liberalization.
  • Investment can occur in both liberalized and regulated economies.
• Favorable Trade
  • This term refers to trade conditions that are advantageous to a country, such as export subsidies or favorable trade agreements.
  • It differs from liberalization, which focuses on removing trade barriers rather than creating specific advantages.
• Free Trade
  • Free trade is a policy of minimizing or eliminating trade restrictions, such as tariffs and quotas, between countries.
  • While related to liberalization, free trade specifically refers to international trade, whereas liberalization can apply to domestic and international markets.