What are the advantages of privatization?

A

Basically, privatization is selling government properties to private owners; this reduces or finishes the control of government to the affairs of the company or organization privatized. There are different advantages of privatization which include;

  • There is improved efficiency as the organization competes freely in the market
  • The organization lacks political interferences on its operation and thus can make decisions freely.
  • In most cases, privatization is done to raise revenue. On the other hand, privatized organization compete without any favors from the government, and this leads to better customer service and innovation
  • Management gets pressure from shareholders to perform; this leads to better-managed firms.
Answer by Academic.tip's expert
An answer to this question is provided by one of our experts who specializes in business & economics. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2021) 'What are the advantages of privatization'. 21 July.

Reference

Academic.Tips. (2021, July 21). What are the advantages of privatization? Retrieved from https://academic.tips/question/what-are-the-advantages-of-privatization/

References

Academic.Tips. 2021. "What are the advantages of privatization?" July 21, 2021. https://academic.tips/question/what-are-the-advantages-of-privatization/.

1. Academic.Tips. "What are the advantages of privatization?" July 21, 2021. https://academic.tips/question/what-are-the-advantages-of-privatization/.


Bibliography


Academic.Tips. "What are the advantages of privatization?" July 21, 2021. https://academic.tips/question/what-are-the-advantages-of-privatization/.

Work Cited

"What are the advantages of privatization?" Academic.Tips, 21 July 2021, academic.tips/question/what-are-the-advantages-of-privatization/.

Copy