Fill in the blanks with the appropriate economic reform terms to complete the statements.
Answer:When a government divests its equity shareholding and operational control of a state-owned enterprise to private investors, the policy implemented is known as 【privatization】. Conversely, when government statutory monopolies and barriers to market entry are removed to open an industry to private competitors, the process is referred to as 【deregulation】.
Answer
The first blank requires privatization (the transfer of state ownership and control to private hands), and the second blank requires deregulation (the removal of legal barriers and monopolies to allow open market competition).
Privatization is the structural policy that shifts ownership and control of public enterprises to private individuals or corporate entities. Deregulation involves dismantling legal monopolies and government restrictions to open up an economic sector to free-market forces and competition.
Step-by-Step Solution
Key Concept
Distinction between privatization and deregulation in public sector reforms
Estimated Time:1m 0s