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nasty-shy [4]
3 years ago
15

5. Political economy involves the study of the relationship between states and markets. a. Define globalization. b. Define econo

mic liberalization. c. Describe the actions governments take in pursuing a policy of economic liberalization regarding TWO of the following: i. Subsidies ii. Tariffs iii. Ownership of companies and firms iv. Foreign direct investment d. Identify one international organization that promotes economic liberalization.
Law
1 answer:
Arte-miy333 [17]3 years ago
7 0

Answer: Globalisation is the method that firm employ to gain international footing or spread.

Economic Liberation in a market is such that the government or state reduces their influence or control on the market activities so as to give a measure of control to the private firms

C)Tarrif: Government or the state reduces Tarrif on imported raw materials so as to enable the private firms especially start up.

Ownership of companies and firm: deregulation of all state owned firms , privatisation of public corporation tends to give economic Liberation to the people and firm.

D) International labour organisation ILO play major role in economic liberation

Explanation

Globalisation is a process by which firms spread their business wings abroad ,this may involve buying into shares of company operating in similar line of business or setting up a branch of their business abroad.it allows for organic growth and improves FDI for the state.

Economic liberation involves government relaxing Control on market apparatus under their control,this is to provide a connection business environment for current and prospective firms who wishes to invest in the company ,sometime it may involve economic integration at regional level e.g the European Union,which relaxes trading between countries situated within the europe,this may involve slashing drastically tariffs such as tax paid on goods movement within member nationd or completely eradicating the tariff.this allow companies to operate or open branches in as many member countries as possible ,this reduces unemployment across member countries and promote the common currency the Euro relative to other world currency.

The government also privatised public corporation giving larger share of control to the public or citizen,this allow. Government to focus on governance while handing over business to private entities ,this enhances transparency and improve the number of entrepreneurs in the country

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