Privatization stidy

1. LIBERALISATION,PRIVATISATION AND
GLOBALISATION

2. LIBERALIZATION
 Liberalization is a very broad term that usually refers
to fewer government regulations and restrictions in the
economy in exchange for greater participation of
private entities
 Liberalization refers to the relaxation of the previous
government restriction usually in area of social and
economic policies. When government liberalized trade
, it means it has removed the tariff ,subsidies and other
restriction on the flow of goods and services between
the countries.

3. Measures taken for liberalization
• Liberalization for industrial licensing
• Concession from monopolies act
• Freedom for expansion and production to industries
• Increase in the investment limit of the small industries
• Freedom to import the capital goods and raw material
• Freedom to import technology
• Liberalization of export and import transactions
• Liberalization in taxation policy
• Liberalization in banking sector

4. ADVANTAGE of Liberalization
1. Industrial licensing
2. Increase the foreign investment
3. Increase the foreign exchange reserve.
4. Increase in consumption and Control over price.
5. Reduction in dependence on external commercial borrowings
6. Competition promotes efficiency, so resources are wasted much less
7. Liberalization removes government regulations on the economy,
which promotes jobs, lower prices, higher incomes and lowers
inflation.
8. Promotes technological advancement, again creating jobs and
growing incomes

5. DISADVANTAGE
• Increase in unemployment.
• Loss to domestic units.
• Increase dependence on foreign nations
• Unbalanced development

6. PRIVATIZATION
 Privatization means transfer of ownership and/or
management of an enterprise from the public sector to the
private sector .It also means the withdrawal of the state
from an industry or sector partially or fully. Privatization is
opening up of an industry that has been reserved for public
sector to the private sector.
 Privatization means replacing government monopolies
with the competitive pressures of the marketplace to
encourage efficiency, quality and innovation in the delivery
of goods and services .

7. Different Ways in privatization:
 Liberalization Approach
 Relative Share Enlargement Approach
 Association of Private Sector Management Approach
 Transfer of Minority Equity Ownership Approach
 Transfer of Complete Ownership Approach

8. ADVANTAGE of privatization
 Privatization helps to reduce the burden on Govt.
 It will help profit making public sector unit to modernize and
diversify
their business.
 It will help in making public sector unit more competitive.
 It will help to improving the quality of decision making, because
the decisions are free from any political interference.
 It Encourage the new innovations without any restrictions.
 Industrial growth.

9. DISADVANTAGE of privatization
1. Lack of public welfare.
2. Class struggle.
3. Increase in inequality
4. Opposition by employees.
5. Problem of financing.
6. Problem in unemployment.
7. Ignores the weaker sections.
8. Ignores the national importance

10. What is International Business?
International business consists of transactions that
are devised and carried out across national borders
to satisfy the objectives of individuals, companies,
and organizations.

11. 11
Types of International Business
Export-import trade
Foreign direct
investment
Licensing
Franchising
Management contracts

12. Drivers of international business
 Lower transport and communication costs
 Development of international institutions
 The WTO
 Regional Trade Agreements
 Political decisions toward de-regulation and liberalization of trade
and FDI regulations

13. Drivers of international business
1. Why Enter Foreign Markets?
The reasons for going abroad are the desire to increase profits
and sales and to protect them from competition.
2. Increase profits and sales by entering new markets:
1. Emerging new markets
2. Creation of large new markets due to economic
integration
3. Faster-growing foreign markets
3. Obtain greater profits
1. Less competition
2. Reduced cost of R&D per unit of product
3. Lower manufacturing costs
4. Protect markets, profits, and sales
1. Protect domestic market
2. Protect foreign markets

14. Drivers of international business
Guaranteed supply of raw materials
Acquire technology and management
know-how
Geographic diversification
Satisfy management’s desire for
expansion