An accurate description of privatization is that
A) it started in China in the early 1980s.
B) it involves replacing a state-owned monopoly with a private monopoly.
C) it is most successful when countries adopt communism.
D) when newly privatized firms are protected from foreign competition, they have little incentive to restructure their operations to become more efficient.
E) in today's context, a country runs the risk of experiencing a serious economic crisis if it liberalizes and privatizes state-owned enterprises.

Question

Quizplus · Accepted Answer

When newly privatized firms are protected from foreign competition, they lack the pressure to improve efficiency, which can hinder their restructuring efforts.

An Accurate Description of Privatization Is That