Question

How has privatization contributed in “Commercialization and Globalization?”

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Answer 1

The privatization of ownership in government companies was a major factor for commercialization and globalization boom across countries. Privatization refers to the process of transfer of ownership from public to private players. The public companies usually have people aspect and welfare as a main aim. They try to look for maximum gains for public and try to include as many people as possible. They are not much bothered with the financial health of an organization. Whereas, private companies have financial prospects as the main aim. They try to maximize the profit by bring changes in processes, systems and people. The concept of commercialization is same which aims to run any organization for financial gain. Hence, privatization led to commercialization of companies. Also, opening up of sectors for public attracted players from other countries to invest. As a result, many cash rich private players started looking for opportunities across world. Example: In India, there has been high Foreign Direct Investment by players from United States, Europe, Japan etc. This phenomenon is adopted across countries and hence it led to globalization wherein different parts of the world got connected. Thus, privatization helped in commercialization and globalization.