Correct Answer: comparative advantage

Solution : The correct answer is comparative advantage .

Trade liberalisation has helped India enhance its comparative advantage in industries with medium-to-high technology content. Following the introduction of Liberalisation, Privatisation and Globalisation (LPG) reforms, numerous new opportunities arose for economic growth. Trade liberalisation has brought about many advantages:

1. Increase in FDI
2. Abolishing of licensing system in the country
3. Reducing the monopoly of the public sector
4. Increase in employment opportunities
5. Economic development of the nation.