Liberalization refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprise. It includes: a) Abolishing industrial licensing requirement in most of the industries.b) Freedom in deciding the scale of business activities.c) Freedom in fixing prices of goods and services.d) Reduction in tax rates.Privatization means transfer of ownership or management of an enterprise from thee public sector to the private sector. It includes:a) Divestiture, or privatization of ownership, through the sales of equity.b) Denationalization or re-privatization.c) Contracting- under which government contracts out services to other organizations that produce and deliver them.