Presentation on the topicGlobalizationPrivatizationLiberalization

CONTENTS

• GLOBALIZATION1. CONCEPT2. TYPES3. ADVANTAGES AND DISADVANTAGES• PRIVATIZATION1. CONCEPT AND TYPES2. ADVANTAGES AND DISADVANTAGES• LIBERALIZATION1. CONCEPT2. ADVANTAGES• IN CONTEXT OF NEPAL

Concept of Globalization:

• Globalization is the process of integration between national economies and rest of the world.

• According to world bank,” Globalization is trade flows, investment flows and financial flows and extent to flows of technology, information and services across national boundaries.”

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• Globalization Is mainly facilitated by the organization like WTO,ASEAN, SAARC etc.

• WTO refers to the World Trade Organization which was established to supervise liberalize. International trade was established in January, 1,1995.

• It is the process to promote economic interdependence between countries of the world and free movement of products across orders and flow of capital, labor and technology. 4

Types

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Pictures

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Pros: local employment and career opportunities

can bé developed. Consumer get qualitative Product at

affordable Price. It help to transfer global capital as well as

Manpower. Efficient allocation of resources in différent

line of production can bé done.7

Cons: It destroys infant growing industries. It promotes social evils such as prostitution,

women traffickig, terroirism etc. Promotion of global technologies displaces

traditional art and culture. It damages environment due to fast exploitation

of natural resources. Less developed countries will be highly

dominated by the devloped countries.8

Concept of Privatization: Privatization means leaving the economy from

government control to market. Privatization implies the process which

transfers an enterprise totally or partially which is owned either directly or indirectly by the state to the private sector.

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It has became a central feature of the economic policies in many countries in the présent context.

The intention of privatisation is to make industries competitive by shifting the control or ownership of the means of production from state to common people so that these enterprises are no under political domain.

TYPES: PROPERTY SALE, EQUITY SALE,MGMT CONTRACT

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Pros:

• Raising revenue for the government from the sales.

• Increased competition between private sector companies

• Increases efficiency of the managers• Wider share ownership• Cost pull inflation can be reduced

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Cons:

• Individual is not the best judge• Long term loss of the revenue• Competition in product markets may not be

increased• Market forces may not ensure great efficiency• Private sector firms may not act in public

interest• Loss of government control over economy

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Liberalization

• Privatization is the process of liberalization.• Economic liberalization means the process of

shifting the economy from government control to market economy.

• It is encouraging the private sector to set into the economic activities on a competitive basis by reducing the government’s interference.

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Pros: in the medium and long term lower cost

services provided to users. freeing up government funds for other social

expenditures / investments. attract foreign capital by potential investors,

better suited to carry out investment. increase entrepreneurship in country.• overall the quality of service is improved due

to competition.14