Question

"Foreign trade and foreign investment policies are the aspects of liberalisation and globalisation." Explain the statement with examples.

Answer 1

Foreign trade and foreign investment policies are key aspects of liberalisation and globalisation.

1. Trade Liberalisation: 
   Example: Reduction of Tariffs and Trade Barriers. For instance, the General Agreement on Tariffs and Trade (GATT) and, later, the World Trade Organisation (WTO) have been instrumental in promoting trade liberalisation globally.
2. Foreign Direct Investment (FDI): 
   Example: Openness to FDI in the Retail Sector. India's decision to open its retail sector to foreign investment is an example of embracing globalisation through FDI.
3. Free Trade Agreements (FTAs):
   Example: NAFTA (North American Free Trade Agreement). Such agreements aim to reduce trade and promote economic integration.
4. Deregulation of Financial Markets:
   Example: Financial Market Reforms in China. China's economic reforms, including opening up its stock markets to foreign investors, illustrate how financial deregulation is part of a broader liberalisation strategy.
5. Technology Transfer Policies: Example:
   Example: Intellectual Property Rights (IPR) Agreements. International agreements on intellectual property rights, such as TRIPS (Trade-Related Aspects of Intellectual Property Rights) under the WTO, aim to balance protecting innovators' rights and promoting the global diffusion of technology.