Privatization- Advantages and disadvantages
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Yuya Huang
CoPIs:
Huiting Lin
College:
College of Business and Public Management
Major:
Finance
Faculty Research Advisor(s):
Chen Meng
Abstract:
Our project will examine the advantages and disadvantages of privatization. Privatization, different from nationalization, is the process of transferring ownership of a business, enterprise, or service from the public sector (government) to the private sector (individuals or privately owned companies). Privatization can also describe the transition of a company from publicly traded to privately held. Privatization is often aimed at improving efficiency, reducing government spending, promoting competition, and stimulating economic growth. However, it also has a disadvantage, which will seriously affect the public economy. Rising prices, exploitation of natural resources, and the potential lack of access to basic services for low-income groups are disadvantages of privatization. Thus, privatization has two sides, which is worth exploring. Therefore, in our case study, we will evaluate privatization in terms of its definition and performance, considering the differences between privatization and nationalization, the impact of privatization on society, and the potential pros and cons of privatization. Our findings will be published on posters.