Review Brief - Deregulation: refer to the removal of legal...

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Deregulation: refer to the removal of legal constrain from the government on the business behaviour. 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. For example, in the Medical Centre case, the government allowed the private enterprise to join the business…. . Privatization: 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. Crown 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 …. Globalization: the process of integrating world economy and market. It takes 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 production specialization. Decamping:
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This document was uploaded on 10/25/2011 for the course LAPS adms1010 at York University.

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Review Brief - Deregulation: refer to the removal of legal...

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