KEY WORDS
What is Privatization- The transfer of public sector recourses to the the private sector Nationalized industries- Public corporations previously part of the private sector which were taken into state ownership. Why does privatization take place:
EXAM QUESTIONS Why is unemployment likely to rise as a result in privatization |
Effects of privatization
Consumer- Consumers benefit from privatization as prices fall Workers- When an industry is privatized the business usually cuts staffing levels. Firms- When a firm is privatized it is left without government interference and they have to face competition. They can be affected positively or negatively |