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Answer» (A) Positive effects of privatization: - Rise in production efficiency
- Absence of political interference
- Improved quality goods and services
- Systematic marketing
- Use of modern technology
- Hierarchical set-up for accountability
- Creation of competitive environment
- Advancement in research and development
- Advancement in modernization and innovation
- Maximum utilization of factors of production
- Growth of infrastructural facilities
(B) Negative effects of privatization: - Exploitation of employees
- Misuse of powers by top management
- Unequal distribution of income and wealth
- Absence of job security
- Priority to profit
- Consumer exploitation, etc.
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