Liberalization
Definition
Liberalization refers to relaxing previous government restrictions usually in areas of social or economic policy. In economics, liberalization often means reducing tariffs or other non-tariff barriers to free trade.
Analogy
Liberalization is like a parent loosening the curfew rules for their teenager. The teenager now has more freedom to stay out later and make decisions on their own, just as businesses have more freedom to operate in a liberalized economy.
Related terms
Trade Barriers: Measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.
Tariffs: Taxes imposed by a government on goods and services imported from other countries.
Free Trade: International trade left to its natural course without tariffs, quotas, or other restrictions.
"Liberalization" appears in:
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