Q1. [1] § Liberalisation of foreign trade and foreign investment policy
Choose the correct option to fill the blank.
Removing barriers or restrictions on business and trade set by the government is called as __________ .
- (a) Disinvestment
- (b) Special Economic Zones
- (c) Liberalisation
- (d) Foreign Direct Investment
Previously asked in CBSE board exam
2024 32/1/1 Q16
Generated by claude-sonnet-4-6 · 2026-06-15 06:59 · grounding rag
Model Answer
(c) Liberalisation
Removing barriers or restrictions on business and trade set by the government is called Liberalisation.
Explanation
The textbook explicitly states: "Removing barriers or restrictions set by the government is what is known as liberalisation." Disinvestment refers to the government selling its stake in public enterprises; SEZs are special industrial zones; FDI is foreign investment in another country — none of these match the definition given.
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