refer to the removal of legal constrain from the government on the
It may involve the removal of
partial or the entire program,
agency, or specific regulation.
Deregulation is the result of the conservative
movement in the 1980s in the USA and the Britain to reduce the degree of
government intervention in the business activities.
Deregulation doesn’t mean
that the government removes all legal constraints and stop regulating, but the
government will re-regulate in a more efficient way by allowing the business to
grow with less barriers.
in the Medical Centre case, the
government allowed the private enterprise to join the business….
the transfer of ownership from the public to private. Along with the
conservative movement in the 1980s in the USA and the Britain, comes the
privatization and deregulation to reduce the degree of government intervention in
the business activities. The goal of privatization is the increase the competition
which determine the best market mechanism for firms to behaviour in rational
way by improving their efficiency to survival. (Rationales) The supporters of
privatization claim that there are advantage of privatization, for example, private
sector is more efficient in term of reducing cost and price, the government will
reduce its deficit by selling inefficient crown corporation and no longer in charge
of financing the crown by public sector borrowing money;
the government also
eased the problem of public sector pay determination, and share the ownership
with private sectors to increase private sector competitiveness to improve
production, reduce government involvement in enterprise decision making,
gaining political advantage by selling off asset and create more jobs, and by
holding only crucial service to society such as hospital, not LCBO.
Corporation which is owned by the government is subject of privatization attack
b/c it was claimed to be costly, bloated, unresponsive, unaccountable, and they
competed unfairly against the market place, and they outlived their useful lives.
For example, Canadian government privatized its Pearson Airport to ….
the process of integrating world economy and market.
place for the first time at the beginning of the 1900 and now it takes place again
began in 1980s.
Globalization leads the trade between countries in goods,
service, and capital.
Countries become borderless, and there are increasing
number in trade blocks, such as NAFTA, EU, APEC, ect.
And there are more
trade agreement associated with this trade blocks in which they try to reduce the
trade barrier, such as tariff, improve the regional economy as a whole. There also
controversial debate about the impact of globalization on the world economy,
such as it showed in the video:
the rule of the game.
According to comparative
advantage trade theory, by David Ricardo, the world will be better off with