WORLD HISTORY

Detailed explanation-1: -Increased competition: Lower trade and FDI barriers on final goods can strengthen competition in the liberalized sector(s). This can help firms exploit economies of scale, improve efficiency, absorb foreign technology, and innovate.

Detailed explanation-2: -Trade liberalization is the removal or reduction of restrictions or barriers on the free exchange of goods between nations. These barriers include tariffs, such as duties and surcharges, and nontariff barriers, such as licensing rules and quotas.

Detailed explanation-3: -Reducing tariff barriers leads to trade creation Trade creation occurs when consumption switches from high-cost producers to low-cost producers. Essentially, removing tariffs leads to lower prices for consumers – so the price of imported food, clothes and computers will be lower.

Detailed explanation-4: -Ability to serve local customers better. Improved access to supply chains and regional networks. Lower labour and operating costs. Reduction or elimination of legal and other regulatory barriers.