Globalization

It means to link the economy of a country with the global market or economy. Most
noteworthy, the main aim of this is to focus on foreign trade and investment. In other
words, in globalization, we remove the barriers to international trade to facilitate foreign
investment and trade in the country.
Concept of Globalization
In globalization, the entire world economy acts as a single unit. In other words, in
globalization the entire world trade with each other with mutual cooperation. Also, it
notices the growth and output of world trade. The measuring of globalization is not an
easy task. Besides, it helps developing countries in their growth and development.

Characteristics of Globalization
The characteristics of globalization include several features that not only help countries
in trade. But, also facilitate many other things. In addition, these features help in the
globalization of economic activities, facilitate free trade between countries, connect the
local and international, market and many more.

Implementation of globalization
Globalization makes possible The Foreign Direct Income (FDI). Moreover, this direct
income grows more rapidly than world trade. Most noteworthy, this help in boosting the
technology, industrial restructuring, and growth of companies.

Liberalization
It refers to the end of that restriction which is a barrier that stops or slows the growth of
a nation. Also, it loosens the government control over the private sector companies. So,
private companies can work with fewer restrictions. In addition, they get the chance for
growth and expansion.

Concept of Liberalization
The concept of liberalization is introduced in the early 1990s in India. At that time
powerful changes happen in Indian economic structure. In addition, most of the
international companies that work in India are from that time. With the start of
liberalization, many companies face serious competition for the first time. Also,
companies that monopolize the market at that time start getting competition.

Characteristics of Liberalization
The characteristics of liberalization contain some strong benefits that help in the growth
of companies. Firstly, it encourages economic growth of private sector companies. Also,
it simplifies the regulation, policy, and tax structure. Liberalization facilitates Foreign
Direct Investment, which also forces public sector companies to restructure themselves
for efficiency. In addition, it provides motivation for export and allows more imports of
capital goods and technology. Besides, it moves away from the protection of small scale
industries.

Implementation of Liberalization
Removing barriers of trade reduces the rate of goods purchased. Also, it removes
barriers and quotas between countries. It benefits the stronger economies. Besides, the
implementation of liberalization can cost jobs.
Privatization
It means the increase of the controlling role of private sector companies and lessens the
role of public sector companies. In other words, privatization is the reduction of
government-owned companies’ ownership of management. Also, it converts government
companies into private companies.

Concept of Privatization
The concept of privatization divides into four parts namely delegation, divestment,
displacement, and disinvestment. Delegation means giving the companies on lease or
grant. Divestment means selling the majority of the stake to one or many private
companies. Displacement means to displace the public company in the market. And
finally, disinvestment means selling a portion or whole public company to private
companies.

Characteristics of Privatization
Privatization improves efficiency because private companies have a profit motive to cut
cost and be more resourceful. Also, there is less political interference, they fight the
competition, they set short term goals, and there are shareholders in the companies.

Implications of Privatization
It sees the growth of companies also the employees take their work seriously. In
addition, they help in the development of the economy.

Liberalization, the loosening of government controls. Although

sometimes associated with the relaxation of laws relating to social
matters such as abortion and divorce, liberalization is most often used
as an economic term. In particular, it refers to reductions in
restrictions on international trade and capital. Liberalization is often
treated as synonymous with deregulation—that is, the removal of state
restrictions on business. In principle the two are distinct (in that
liberalized markets can still be subject to government regulations—for
example, to protect consumers), but in practice both terms are
generally used to refer to the freeing of markets from state
intervention.

The second half of the 20th century saw a significant shift toward both
liberalization and deregulation. The liberalization of trade progressed
through the signing of a succession of free trade agreements such as
the General Agreement on Tariffs and Trade (GATT) in 1947,
the Single European Act in 1986, and the North American Free Trade
Agreement (NAFTA) in 1992. By the 1970s free trade had extended to
most Organisation for Economic Co-operation and
Development (OECD) countries, and many developing countries
followed suit from the 1980s on (including the postcommunist
regimes of central and eastern Europe and, later, the People’s Republic
of China). Another shift occurred toward the removal of foreign
investment regulations: according to United Nations Conference on
Trade and Development (UNCTAD) figures, between 1991 and 1996,
95 percent of the 599 national foreign direct investment (FDI)
regulations across the world were in the direction of further
liberalization. Financial markets too have been freed from state
interference. The foreign exchange market was the first financial
market to liberalize, in the mid-1970s, followed by the deregulation of
domestic stock markets in the 1980s (for the advanced industrial
nations) and the 1990s (for the newly industrializing countries).

Liberalization and deregulation played a central role in stimulating the

massive rise in international trade (which grew at an average rate of 6
percent per annum between 1948 and 1997), FDI (for which stocks
and inflows exceeded the rise in world trade), and foreign exchange
and portfolio capital (with the average daily turnover of foreign
exchange markets reaching the trillions of dollars). Liberalization and
deregulation are thus both seen to have contributed to
the globalization of the world economy.

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There is significant controversy about the benefits of liberalization and

deregulation. Both are central tenets of the “Washington consensus”—
a set of market-oriented policy prescriptions advocated by neoliberal
economists for developing countries to achieve economic growth. Yet
critics of the Washington consensus have argued that in practice such
policies are being used by corporations from wealthier countries such
as the United States to exploit workers from the poorer countries. This
is not least because—as activists and scholars alike have noted—
markets are, in reality, neither free nor fair. For example, generous
subsidies paid to cotton producers in the United States and
the European Union artificially drive down prices, threatening the
livelihoods of African cotton farmers. For many critics, the problem is
therefore not so much the freeing of markets per se but, rather, that
the wealthier countries are effectively cheating at the game they are
exporting to the rest of the world.

Globalization is where an economy of scale is created through the interaction and integration among
people, companies, and governments worldwide. 
It is a complex and multifaceted phenomenon, which is considered by some as a form of capitalist
expansion which entails the integration of local and national economies into a global, unregulated
market economy.
Liberalization is the process where a state lifts restrictions on some private individual activities. It is a
situation in which government regulations and restrictions are relaxed to make room for economic
expansion.
They are both economic terms whose differentiation will be highlighted in this article.
Aspirants can find more Difference Between Articles, by visiting the linked page
The differences between the globalization and liberalization are highlighted in the table below:           
Differences between Globalization and Liberalization

Globalization Liberalization

Globalization is closely related to the scale of Liberalization is mainly concentrated on economic

economic activities across nations activities as a result of modernization and development

In a globalized setup, localities develop direct Liberalization also often involves reductions in taxes,
economic and cultural relationships to the global social security, and unemployment benefits.
system through information technologies,
bypassing and subverting traditional power
hierarchies like national governments and
markets.

 Access to New Culture  Inward Investments

 Lower Costs for Products  Increased competition will lead to a rise in quality
 Access to New Talent goods for the consumer

 There are chances of developing nations  Loss of domestic units due to the inflow of
will be open to exploitation by advanced foreign goods
economies  Unbalanced economic development
 Adverse effects on local economies  Increased dependency on foreign assistance
 Cultural Homogenization

The most archaic form of globalization can be Although early forms of liberalization were practised by
traced back to the days of the Indus Valley merchant states of the 15ht century, such as Venice,
Civilization where relations between different liberalizations in its modern form can be traced after
nations were shaped by the geographical spread World War 2. In India, the process of liberalization was
of ideas and social norms at local and regional initiated through the economic reforms of 1991 by Prime
levels. Minister P. V. Narasimha Rao and his then-Finance
Minister Dr. Manmohan Singh