The term refers to changes made by a government to improve its economy, usually by allowing more private ownership, reducing trade barriers, and encouraging foreign investment.
Related terms
Market economy: An economic system where decisions about production, distribution, and prices are determined by individuals and businesses based on supply and demand.
Foreign direct investment (FDI): Investment made by one country into another country's businesses or infrastructure.
Privatization: The transfer of ownership from public (government) control to private individuals or companies.