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What can business get when government adopts a policy of liberalisation?

Answer and explanation

Correct answer: More freedom and new opportunities

Direct answer: Option B, more freedom and new opportunities. Liberalisation means reducing unnecessary government controls, licences, restrictions, or barriers on business. It does not mean that every rule disappears; rather, businesses usually get greater freedom to enter markets, expand, invest, compete, import, or introduce new products, subject to applicable laws. The reasoning is: fewer restrictive controls → easier business decisions and competition → more possible opportunities. Option A is wrong because liberalisation generally aims to increase, not reduce, business opportunities. Option B is correct because it states both main effects: greater freedom and new opportunities. Option C is wrong because liberalisation does not make the number of customers zero; competition and market activity may actually grow. Option D is wrong because liberalisation does not close all markets; it generally opens or expands market access. Remember: liberalisation means less unnecessary restriction, not no regulation.

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Business-EnvironmentPolitical-EnvironmentClass-12Easy

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