ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Deregulation is the elimination or removal of government controls over a particular industry or sector. Deregulation opens up the industry to more players and makes it more competitive. Deregulation opens investment opportunities and promotes economic growth.

Detailed explanation-2: -The opening up of markets to competition by reducing one or more barriers to entry. The aim is to increase market supply, stimulate competition and innovation and drive prices down for consumers.

Detailed explanation-3: -Deregulation lowers costs of operations, allows more businesses to enter a market, and lowers prices for consumers. These factors can help stimulate efficiency and lead to increased economic growth.

Detailed explanation-4: -Example of Deregulation in the Banking Industry It allowed banks to compete with international competitors and invest their money into securities without regulations to inhibit them from doing so. In the U.S., banks became deregulated due to the repeal of the Glass-Steagall Act in 1999.

Detailed explanation-5: -In addition, there have been regulatory innovations, usually suggested by economists, such as emissions trading. Deregulation can be distinguished from privatization, which transfers state-owned businesses to the private sector.