Question

1. The government of Uwannastan protects its newly privatized firms from foreign competition by imposing stringent barriers to international trade and foreign direct investment. As a result of this, the newly privatized firms will:
   
   

   		have no control over production and pricing.
   		import raw materials and many industrial goods at low tariffs.
   		continue operating like State-owned enterprises
   		continue operating like private companies under capitalism

Answer 1

As a result of this, the newly privatized firms will :

(D) Continue operating like private companies under capitalism.

This is because, Capitalism is an economic system where the means of production are owned by private individuals and it is the part of the economy that is run by individuals and companies for profit and is not state controlled.

OTHER OPTIONS : (NOT THE ANSWER)

1.Have no control over production and pricing.

Because the companiescare independent and not state controlled they have control ovrr production and pricing.

2.Import raw materials and many industrial goods at low tariffs.

Tariffs are equal for all accordinh to the size and type of the firm.

3.Continue operating like State-owned enterprises.

A privately held company or close corporation is a corporation that is not owned by the government.