Privatisation Flashcards
1
Q
Define Privatization
A
The act of selling activity or organization controlled by the government to the private individual or firm
2
Q
Why does privatization take place?
A
Generate income
Reduce political interference
Public organizations were inefficient
3
Q
What is the effect of privatization on consumers & workers?
A
Consumers ;
Better quality product
Cheaper prices
Workers;
The employment rate goes down
Better salary
Forced to increase productivity
4
Q
Types of privatization
A
Contracting out
Monopoly
Sale of nationalized industries
5
Q
Define Monopoly
A
One of its kind and provided by one individual
6
Q
Effect of privatization on governments and producers
A
Governments ;
Get rid of debts
Expensive
Rise in revenue
Producers ;
Increased profit
Rise in investments
Diversification
