Question

Discuss advantages and disadvantages of privatisation and liberalisation

Answer 1

Liberalization is a method through which a nation lifts limitations on some separate individual ventures. This process of liberalization occurs when anything which used to be prevented is no longer banned, or when state laws are relaxed.

Merits

1. It can create jobs for many people.

2. It results in an increase in the competition and thus consumers get a good quality product at a lower cost.

Demerits

1. It affects the local shops.

2. It is a profit-oriented approach and not socially favorable.

Privatization in general term refers to the transfer of a business, enterprise, or service from the public to private dominion and authority.  

Merits:

1. The main motif of the privatized industries is to make more profit tus these companies are more efficient.  

2. The efficiency of a firm in privatization is caused by the shareholders.  

Demerits:

1. A  natural monopoly befalls when the various effective number of firms in an enterprise is one.  

2. Privatization produces private pools, such as water corporations and rail corporations. These need monitoring to check abuse of pool control of the corporations

plzz rate this answer and mark it as Brainliest