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InterviewSolution
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What is privatization ? Explain the following arguments favouring privatization :(i) Greater flexibility in decision making. (ii) Better utilization of resources. (iii) Greater employment opportunities. |
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Answer» Privatisation is the general process of involving the private sector in the ownership or operation of a state owned enterprises. (i) Greater Flexibility in decision making : Private sector is owned and controlled by private individual or individuals. All the major economic decision i.e. how to produce, what to produce, for whom to produce are taken by the individual keeping in mind the profit factor. (ii) Better utilisation of resources : Under private sector resources are fully and efficiently utilised keeping in mind cost and profits. (iii) Greater employment opportunities : Private sector in most of the developing nations has grown at a very fast rate. In last few decades more than 40% of the work force of developing nation is working for private sector. |
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