Why The Economic Liberalization Is Regarded As A Second Step Towards Facilitating Globalization

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Globalization is the process of integrating various economies of world without creating any hindrances in the flow of goods and services, technology, capital, and even labor or human capital. The term globalization means to permit the free flow of goods and services in the world. To create an environment in which free flow of capital can take place among nation states, an environment permitting free flow of technology and from the point of view of developing countries, creation of environment in which free movement of labor can take place in different countries of the world. Essential conditions for globalization are there should not be unnecessary government restrictions which come in the way of globalization like import restrictions on sourcing finance or other factors from abroad, foreign investments etc...That is why the economic liberalization is regarded as a first step towards facilitating globalization . Government interference is a hindrance to globalization, government support can encourage globalization. Government support may take the form of policy and procedural reforms, development of common facilities like infrastructural facilities. Resources often decide the ability of a firm to globalize. Resourceful companies may find it easier to thrust ahead in the global market. Resource include finance, technology, managerial expertise, company and brand image, human resource etc. it should however, be noted that many small firms have been very successful in
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