Difference between Liberalisation and Globalisation
Although, the concepts of liberalisation and globalisation are closely related with each other as both are referred to the relaxation of social, economic and political policies so as to promote integration in different countries around the world. However, if you look more precisely, there are still few differences between the two terms.
Liberalisation refers to the process of removal of the restrictions which mainly include the government policies which are imposed on the economic, political and social matters of the state. On the other hand, globalisation refers to the process of integration among different nations around the world so as to attain social, economical and political advantages.
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Liberalisation
It refers to the eradication of the limitations imposed by the government policies on the economical, social and political matters so as to promote integration amongst different processes within the state. Liberalisation can be related to the society, politics, economics, capital markets or trades. Social liberalisation can be referred to the abolition of the laws which hindered the social justice in a country. Trade liberalisation may be referred to the removal of the trade policies due to which the people cannot import or export freely. Meanwhile, economic liberalisation can be related to the promotion of privatisation in the country and to remove the restrictions on economic activities. Similarly, the capital market liberalisation may include reduction of limitations on the debt and equity markets in the financial system of the state.
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Globalisation
It can be defined as a process of promoting integration amongst different countries so that they can attain social, economical and political benefits from each other. The globalisation has provided many opportunities to the individuals and businesses to seek and explore more and more options. With the help of globalisation, businesses can avail better options for expansion and the consumers can search for better products and services at competitive prices.
Furthermore, it has provided many employment opportunities to the individuals in the less developed countries. For instance, when a multinational company opens its office or offices in under developed countries and build factories, it helps in employment creation at all levels as it requires executives, officers and labours run their business. However, some companies are also facing problems with managing their workforce diversity because of globalisation. Nonetheless, the advantages of globalisation have far superseded its disadvantages.
