Asked Dec 8, 2019

would deregulation and privatization as well as increased competition be likely to increase mexico rate of economic growth?


Expert Answer

Step 1

The privatization is the process of transferring the ownership of the public sector enterprises into the hands of the private sector. The public sector enterprises results in the wastage of resources as well as the less efficient method of production in the economy. When the Mexic economy transfers the ownership and operation of the public sector amenities to the private sector, it would increase the efficiency of operation of the firm. the private sector would always have a profit motive which will increase the output and reduce the input used. Thus, when the Mexic economy adapts the privatization, it will help to foster the economic growth of the economy through increased private firms and increased overall efficiency of the economy.

Step 2

The deregulation means the elimination of the regulation sin the economy such as the licensing requirements as well as the contractual norms of the economy which makes it difficult to start and operate a business in the economy. When the deregulation takes place, it will become easy...

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