Privatization - is the incidence or process of transferring ownership of business from the public sector (government) to the private sector (business). The private sector is more efficient than the public sector. The benefits of privatization include: -better quality products -lower priced products -more efficient firms which have lower costs -makes costs lower for other firms who use the product the privatized firm produces -this increases employment and incomes across the economy -Government no longer needs to subsidize product -Government makes revenue from asset sale to spend on health, education etc -Promotes technological advancement, again creating jobs and growing incomes
Globalization- Globalization is often used to refer to economic globalization, that is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology Globalization: -Allows specialization, so countries can produce more goods more efficiently, increasing incomes and lowering prices/costs -Countries can produce what they are best at and trade it for goods other countries can produce well, allowing both countries to benefit -Countries which have a low savings level can borrow money from overseas to invest, thus increasing their incomes and jobs -Countries which have a high savings level and don't know what to do with it can invest it in other countries and earn a return -It makes technology improvements flow between countries, so all countries can reep the benefits of improved technology, by increasing incomes and jobs -It allows people to migrate between countries, increasing labour force mobility. This leads to higher efficiency as people can move to the jobs they do best. This means higher incomes for all and increased jobs. -Globalisation increases competition, making firms more efficient -Globalisation allows outsourcing, which is beneficial as people can do the same job for less money elsewhere, and the people who did the job originally can get a job they are actually good at -Globalisation puts downward pressure on inflation -Promotes technological advancement, again creating jobs and growing incomes
Liberalisation- a relaxation of previous government restrictions, usually in areas of social or economic policy Benefits: -Promotes competition, which leads to lower costs and prices for consumers -Competition promotes efficiency, so resources are wasted much much less -Liberalization allows financial markets to provide loans to people who previously may not have been able to access loans that they can pay off, and it allows more financial instruments to be developed so people can choose the one that suits them -Liberalization removes government regulations on the economy, which promotes jobs, lower prices, higher incomes and lowers inflation -Promotes technological advancement, again creating jobs and growing incomes.
