Q.The process of integrating a national economy with the world economy through the free flow of trade, investment, and technology is called:

This question tests the basic definition of globalization as distinct from liberalization and privatization, which primarily involve domestic-economy changes.

This question checks whether the term for the third LPG reform can be identified from its definition.

Option (A) Liberalization — this refers to reducing government rules and restrictions on domestic private economic activity, not to integration with the world economy specifically. Not the answer.

Option (B) Globalization — this exactly matches the definition given: integrating a national economy with the world economy through the freer flow of trade, investment, technology, and information across borders. This is the correct answer.

Option (C) Privatization — this refers to transferring ownership/management of public enterprises to the private sector, unrelated to integration with the world economy as such. Not the answer. …

Students sometimes confuse globalization with liberalization because both were part of the same 1991 reform package and both increase openness — remember globalization is specifically about EXTERNAL integration with world ma …