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Q.

An increase in the GNP is a positive impact of :

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a

Liberalisation

b

Investments

c

Trade barriers

d

Globalisation

answer is A.

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Detailed Solution

An increase in the GNP is a positive impact of liberalisation. As the government has removed trade and investment barriers, international trade and investments get promoted. More MNCs can now enter the market, contributing to the economy's production. With the MNCs entering the markets, local producers and sellers have to increase the quality of the goods and services due to the rising competition. MNCs enjoy various pros given by the government to attract more foreign investments. More production will lead to the benefit of producing more goods and services in an economy all together.

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