Which of the following is most likely to guarantee the success of privatization?

Question

Quizplus · Accepted Answer

Deregulating and opening of the economy can lead to increased competition and innovation, which can help ensure the success of privatization. This allows the newly privatized firms to compete more fairly with other domestic and foreign firms, and can also attract foreign investment. Providing subsidies or protection from foreign competition can create a dependence on government support and ultimately harm the competitiveness of the newly privatized firms. Ensuring that privatization simply replaces a state-owned monopoly with a private monopoly does not promote competition and innovation, and may not lead to an efficient or effective market. Increasing import tariffs, income tax, and corporate tax rates can deter foreign investment and discourage innovation, ultimately hindering the success of privatization.

Which of the Following Is Most Likely to Guarantee the Success