The country of Morson has decided to privatize the state-owned cable television company. How can the country help this newly privatized industry succeed?
A) impose high corporate taxes on the company immediately after its privatization
B) increase barriers to foreign direct investment
C) intervene in the company's operations by exercising price controls
D) split the company into independent units to compete with each other
E) prohibit foreign companies from entering into the field of telecommunication

Question

Quizplus · Accepted Answer

Splitting the company into independent units can foster competition, leading to improved efficiency and innovation, which can help the industry succeed.

The Country of Morson Has Decided to Privatize the State-Owned