1
Q
What is privatisation?
A
Public - private sector transfer of a business, industry or service
2
Q
What are the benefits of privatisation?
A
Profit motive
Asset sale raises govt. revenue
Extra contestability
Competitiveness benefits
3
Q
Why is the profit motive a benefit of privatisation?
A
Drive to cut costs + improve productivity/efficiencies
4
Q
What are the potential drawbacks of privatisation?
A
Social objectives
State management more appropriate
Govt. loses out on dividends
Monopoly risk
Unemployment as efficiency rises
5
Q
Why may it be in the consumer interest for a firm/industry to be under public ownership?
A
Optimal allocation
Scope for natural state monopoly
E.g., Water, steel, railways
Macro 13
flashcards
Decks in class (61)
# Cards
-
4.1 - Globalisation: Impacts1
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4.1 - Globalisation13
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4.1 - Patterns of Trade12
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4.1 - Specialisation + Trade11
-
4.1 - Terms of Trade13
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4.1 - Trading Blocs + Integration9
-
4.1 - Trade Bloc Impacts2
-
4.1 - International Economic Bodies6
-
4.1 - WTO Impacts2
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4.1 - Operation of Global Markets0
-
4.1 - Protectionism10
-
4.1 - Balance of Trade12
-
4.1 - Current Account20
-
4.1 - UK Current Account0
-
4.1 - Balance of Payments4
-
4.1 - Current Account: Surplus12
-
4.1 - Exchange Rate Systems7
-
4.1 - Floating Exchange Rates6
-
4.1 - Managed Exchange Rates9
-
4.1 - Depreciation Impacts7
-
4.1 - International Competitiveness10
-
4.2 - Poverty9
-
4.2 - Causes + Reductions of Poverty12
-
4.2 - Inequality10
-
4.2 - Inequality + Capitalism5
-
4.2 - Measuring Inequality6
-
4.3 - Measuring Development6
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4.3 - Factors Influencing Development12
-
4.3 - HDI10
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4.3 - Market Oriented Strategies12
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4.3 - FDI7
-
4.3 - Microfinance Schemes7
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4.3 - Privatisation5
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4.3 - Interventionist Strategy18
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4.3 - Market + Intervention Evaluation6
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4.3 - Other Development Methods12
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4.3 - Lewis Model5
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4.3 - Overseas Aid13
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4.3 - International Players9
-
4.4 - Role of Financial Markets13
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4.4 - Money11
-
4.4 - Banks13
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4.4 - Market Failure in Financial Markets9
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4.4 - Role of Central Banks6
-
4.4 - Monetary Policy10
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4.4 - Quantitative Easing10
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4.5 - Expenditure10
-
4.5 - Crowding + Austerity7
-
4.5 - Taxation8
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4.5 - Laffer Curve3
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4.5 - Tax + AD/AS10
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4.5 - Impacts of Tax Changes9
-
4.5 - National Debts10
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4.5 - Deficits + Fiscal Policy8
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4.5 - Causes of the Deficit10
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4.5 - Austerity7
-
4.5 - Reducing Inequality + Poverty5
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4.5 - Improving Competitiveness6
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4.5 - External Shocks8
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4.5 - Shock Absorption8
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4.5 - TNC's7
