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The effect of privatization on the industrial sector of a...

The effect of privatization on the industrial sector of a country is that it

A.

Ensures efficiency

B.

Discourages efficiency

C.

Leads to decrease in output

D.

Leads to liquidation

Correct answer is A

Privatization involves selling state-owned assets to the private sector. It leads to efficiency in the sense that, it increases employment and productivity. Private market factors can more efficiently deliver many goods or service than governments due to free market competition.