Polsci11

The Effects of trade Liberalization on the tax revenue collection of the bureau of customs

What is liberalization?

In general, liberalization (or liberalisation) refers to a relaxation of previous government restrictions, usually in such areas of social and economic policy. In some contexts this process or concept is often, but not always, referred to as deregulation. Liberalization of autocratic regimes may precede democratization (or not, as in the case of the Prague Spring).

In law

In social policy liberalization may refer to a relaxation of laws restricting for example divorce, abortion, or drugs. Regarding civil rights, it may refer to the elimination of laws prohibiting same, same-sex marriage, interracial marriage, or interfaith marriage.

In economy and trade

Privatization, also spelled privatization, may have several meanings. Primarily, it is the process of transferring ownership of a business, enterprise, agency, public service or public property from the public sector (a government) to the private sector, either to a business that operates for a profit or to a nonprofit organization. It may also mean government outsourcing of services or functions to private firms, e.g. revenue collection, law enforcement, and prison management.

Privatization has also been used to describe two unrelated transactions. The first is the buying of all outstanding shares of a publicly traded company by a single entity, making the company privately owned. This is often described as private equity. The second is a demutualization of a mutual organization or cooperative to form a joint-stock company Liberalization.

Although economic liberalization is often associated with privatization, the two are distinct concepts. For example, the European Union has liberalized gas and electricity markets, instituting a competitive system, but some leading European energy companies such as France's EDF and Sweden's Vattenfall remain partially or completely...