privatization
...the first place, the principal concern of consumers is with the price they pay for the goods and services that privatized businesses produce. Since nationalized industries were inefficient which low motivation to make money just providing public service was main aim and resulted in high costs and often losses were the consequence. However, privatized companies would be forced to cut costs, and make profit for shareholders. For example, charges made for some telephone serves; gas and electricity have fallen since privatization in the UK. Secondly, some of companies would operate in a competitive environment, so would provide more competitive price and better services. Comparing with public sectors, the customers could spend less money and get efficient services. For example, North West offers a Leakline service which promises to repair any leaks on a customerfs property provided they are outside the house. Meanwhile, as a result of deregulation, some organizations would be forced to improve their service and charge competitive price. Private firms began to compete for passengers on bus and train routs. Consumers would benefit from this and should also have greater choice. Finally, many companies increased investment following privatization. So that customers would have wider choices to buy goods. Many of the water companies, for example, raised investment levels to fund new sewerage systems and purification plants. Immediately after privatization investment rose by about 1,000 million in the water industry. And than, privatization might lead to greater competition and encourage new companies open. For instance, British Telecommunications had a protected monopoly in the 1970s, but by the 1990s had to compete with lots of other companies. As a consequence, privatizations have created a more competitive market structure with the benefits to consumers from that. The debate over privatization raged for many years with the consumers opposing every privatization. Considering another side, there are some negative impacts of privatization on customers. First of all, it has been argued that privatization has not led to greater competition. Nationalized industries and monopolies have been sold off too cheaply. In some cases public monopolies with no competition have become private monopolies. These companies have been able to exploit their position. They may set prices they want. eThis has been a criticism leveled at gas and electricity companies.f5 Customers may suffer due to high price. Secondly, state assets were sold products cheaply, because of a government obsession to create market forces. However, privatization has been expensive. In particular, the amount of money spent on expensive TV advertising was used to help sell shares in the companies. High costs of privatization firms certainly cause high price. These companies no longer think about providing a public service. This has resulted in many parts of the businesses being closed down, simply because they do not make a profit. This appears to have happened in public transport such as some rail and bus routs have been cut or stopped completely. As a result, consumers maybe have negative impacts which are limited choices and worse severer. Lastly, some of the newly privatized businesses have not grown but decline even cut back on staffing levels. Welsh mining towns, for instance, no workers now. For customers, job opportunities have been become less. Thus, in some case privatization businesses have carried out negative influences on customers. During the 1980s and 1990s government transferred a great deal of business activity from the public sector to the private sector. As privatized companies, profit and market power allocations have changed a lot. Firstly, after transferring to the private sector, achieving a high profit has become a more important objective. In a competition environment, a stronger finical foundation could more easily to survive. Furthermore, shareholders expect high profit; workers were encouraged to buy shares in their companies so that they would be rewarded for their own hard work and success. For example, the profit of British Telecom have increased from around 1...