Liberalisation of economy results in:

Privatisation of economy

The correct answer is option 3: Privatisation of economy

Liberalisation refers to the process of removing government restrictions and allowing greater freedom to private enterprises, particularly in areas like:

• Reducing state control over industries

• Easing restrictions on foreign trade and investment

• Encouraging privatisation and competition

• Minimizing price and wage controls

Hence, one of the key outcomes of liberalisation is the privatisation of the economy, where the private sector plays a larger role in economic decision-making and ownership.

Why other options are incorrect:

• Option 1: Liberalisation reduces, not increases, control over the market.

• Option 2: It removes regulations on foreign goods, not enforces them.

• Option 4: Liberalisation reduces government control over wages and prices and not increases.