liberalization
lib-er-ul-eye-ZAY-shun
/ˌlɪb.ər.əl.aɪˈzeɪ.ʃən/
The removal or reduction of government restrictions on the free exchange of goods between nations.
Refers to opening domestic markets, lowering tariffs, and removing administrative trade barriers across borders.
The story behind the word. Liberalization stems from Latin 'liber', meaning 'free'. The term gained prominence in post-WWII economics to describe political programs designed to dismantle high interwar protectionist barriers.
Word relationships
- deregulation: Deregulation focuses on removing internal domestic rules, while trade liberalization removes international border restrictions.
- protectionism: Protectionism adds trade barriers, whereas liberalization removes them.
Commonly confused with
- harmonization: Liberalization removes trade barriers; harmonization standardizes regulatory rules across nations.
Word family
- liberalize (verb): To remove trade restrictions or laws
- liberalized (adjective): Freed from regulatory trade barriers
Collocations
- trade liberalization
- economic liberalization
- market liberalization
- liberalization of trade
Example sentences
- "Trade liberalization in the 1990s stimulated foreign direct investment and expanded international markets." Economic policy reforms
- "The liberalization of capital markets allowed international investment banks to establish local headquarters." Financial deregulation
Memory hook
LIBERTY to trade freely without government restrictions. Removal of trade barriers.
When not to use
Do not confuse with social or partisan political liberalism in domestic election contexts.
Fun facts
- The General Agreement on Tariffs and Trade (GATT), founded in 1947, was the main institutional engine driving global trade liberalization in the 20th century.
Related words
Explore more words
deregulation, liberated, Tariff, protectionism, decentralize, globalization
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