What do you understand by liberalisation of foreign trade?

1. Removal of Trade Barriers: Involves reducing or eliminating tariffs, quotas, and restrictions on imports and exports.

2. Promotion of Free Market: Encourages market-driven forces to determine prices, competition, and trade activities.

3. Encouragement of Foreign Investment: Creates a favorable environment for foreign investors to enter and operate in domestic markets.

4. Facilitation of International Trade: Aims to smoothen the flow of goods, services, and investments across borders.

5. Economic Integration: Seeks to integrate national economies into the global market, fostering competitiveness and growth.

6. Focus on Efficiency: Aims to enhance efficiency, innovation, and productivity in domestic industries.

7. Participation in Free Trade Agreements: Involves engaging in agreements to reduce trade barriers among participating countries.

8. Opening Service Sectors: Extends beyond goods to services, allowing freer trade in various service sectors like banking, insurance, and telecommunications.

Liberalization of foreign trade aims to foster economic growth, enhance competitiveness, and promote international cooperation by reducing barriers to trade and investment.