Advantages & Disadvantages Of Commercialization

Advantages & Disadvantages Of Commercialization

These are just a few of the benefits of commercialization,

areduction of government Costs: It frees the government from the financial burden of running and maintaining state-owned companies.

b. Diversification of Government Funds It is a way to diversify public funds into different investments and areas that should be prioritized in the economy instead of focusing on public companies.

C. It Creates Greater Competition. It provides an opportunity to promote healthy competition among private businesses and public firms.

D. It Promotes Efficiency Profit motives in operations allow the production of products and services to be more efficient and efficient.

E. It Reduces Private Monopoly: The implementation of commercialization policies ensures the reduction of private monopolies in the country.

F. It Encourages Effective Utilization of Resources It allows efficient use of human and material resources available to public businesses.

G. It Generates Funds for the government commercialization is an opportunity for the government to earn more money to fulfill specific social, economic, and political duties in the nation.

Disadvantages of Commercialization

1. It decreases the standard of living because of the possibility that there will be an upward trend in the cost of goods and social services offered by state-owned companies.

2. It promotes a high level of consumer exploitation because of an indiscriminate increase in social goods and services costs.

3. This could lead to an outbreak of economic inflation in an increase in the prices of services and goods without any rise in production.

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4. A lack of development in the capital market could make commercialized state-owned enterprises face problems obtaining the capital they require.

5. To maximize profits to make the most profit, some commercialized businesses might try to eliminate certain employees.

6. Commercialization policies often increase the prices of services and goods to increase profits.

7. This could create an unbalanced income and wealth distribution within the country by ensuring that the wealthy who can afford the commodities at pricey prices will be more fortunate than those who cannot pay for these costly goods and services.

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