Privatization Involves transferring the production of goods and services from the public to the private
sector1. It can be devided into three broad types of policy:
Denationalization - selling government owned enterprises to the private sector: deregulation - removing
statutory monopolies, e.g. abolition restrictions upon some services. say, railway or bus, allowing a firm to
set up an alternative service: contracting-out-allowing private firms to bid for the supply of public
services2, e.g. hospital cleaning, wastes collection, etc. Arguments for Privatization.
1) It will lead to greater efficiency. It is argued that by encouraging competitions3 and moving production
into the private sector, goods and services will be produced more cheaply and efficiently. Finns who are
non-efficient will not survive, whereas In the public sector the lack of competition4 makes management slack.
Much local council has cut their costs by contractingout services such as waste collection.
2) Consumers will benefit, because of the increased competition and efficiency consumers should benefit from
greater choice and better services.
3) Taxpayers5 will benefit. Government spending should fall because of cheaper services and lower payments to
support nationalized industries. The sale of public corporations
also brings in several billion pounds a year to the government.
'1) Privatization Increases share0 ownership. The number of people owning shares in companies has tripled in
recent years. Largely because of denationalization by increasing share ownership by consumers the government
hopes the people will have a stake in the success and efficiency of British Industry.
Arguments against privatization.
1) Privatization does not necessarily increase efficiency. It can be argued that in many instances privatized
production is not necessarily cheaper or more efficient. In some cases privatization has merely changed a
public sector monopoly into a privet" sector one.
2.) Consumers have not always benefited. In some cases privatization has brought little benefit to consumers.
But the prices the consumer has to pay as a rule are higher at the beginning. More competition helps to solve
the problem7 here.
3) Privatization costs the government money. Some people say that privatization is like selling off the
family silver to pay the good bills. The profit of Industries such as gas and electricity which were
privatized recently In Great Britain will lost to future governments and eventually government will run out of
assets to sell. In some cases the government sells public corporations at less than the value of their assets.
The government has also had to write off the debts of some nationalized industries before they could be sold.
ORIGINS OF TRADE.
Economic resources are very unevenly distributed across the globe. The climate varies widely from one part of
the world to another, and so do soil fertility and other natural conditions. Some countries are lucky enough
to have rich
reserves of material deposits-oll, coal, cooper and so on: others have hardly any at all. Some have abundant
water supplies while others face the problem of regular droughts. But it is not just natural resources, which
are spread unequally between the countries of the world. The same applies to human and man-made resources.
Certain economics have very large, labour forces, whereas others are very short of labour.
There are also a great variety of skills between one country and another.
There are also nations which, over the years, have built up great stocks of capital eoulpment1 while others
are only now embarking on the process of installing the plant and machinery which is necessary for high levels
It is this uneven distribution of economic resources throughout the world, which is the main reason why
countries find it in their Interest to take part in international trade.
They realize that they are not self-sufficient and that it is difficult to satisfy all their own needs
themselves-instead they concentrate on particular types of production and produce more of certain goods than
are demanded within their own economies. They then sell the surplus to other countries that is export them.
This enables them to buy, or import, goods from economies which are in a better position to produce them.
The basic reason for international trade is this: because of the way In which resources are dispersed among
the countries of the world, some are good at producing one kind product while others arc better at producing
another type e of output. In the same way that individuals within an economy have different talents and skills
so that it pays them to specialize, the principle of the division of labour applies to countries, too-
The first and most, obvious advantage to be gained from4 international trade is that it enables countries to
consume goods, which they are unable to produce themselves. However, there are relatively few goods of which
this true, apart from minerals which simply do not exist in cartain countries but which are found in other
parts of the world.
For other products it is generally the case that they can physically be produced anywhere. Bananas or cocoa or
coffee, for example, can be grown in temperate or cold climates - in hot houses which artificially simulate
the conditions found naturally in tropical parts of the world. And similarly motor cars could be produced in a
tiny underdeveloped country -even involved importing all the machinery and expertise from abroad, and selling
the cars to only a vary small numer of customers who would therefore have to pay a very high price.
The main gain from international trade, therefore, does not lie in obtaining goods, which cannot be produced
at home. It stems from obtaining them more cheaply: and this cheapness results from countries specializing in
the output of the goods which they efficient in producing because of their particular endowment of economic
Two conclusions seem to follow from what has been said about international trade. The first is that the gains8
from international trade are greatest when all government allow such trade to take place freely, without
trying in any way to restrict imports or exports: this is called "free trade."8And secondly, all participants
in international trade will benefit from it.
ПОЯСНЕННЯ ДО ТЕКСТУ
1. Stocks of capital акції на основні фонди обладнання
2 distribution розподіл
3 needs потреби
4 to be gained from отримувати прибуток від чогось
5 Simulate the conditions штучно створювати умови
6 the output of the goods випуск товару, виробництво товарів
7 particular endowment особливий внесок
8 the gains вигода, прибуток
9 is called "free trade" називається вільною торгівлею.
Materials Management1 deals with three major functions:
purchasing, production and inventory control, and distribution. The basic objective of Materials Management is
to ensure that the right that the right item place at the right tine at the lowest possible cost. In most
organization materials manage1 men, is placed on a par with2 other main function of the organization.
The purchasing department buys material in amount authorized by requisitions it receives from the production
control and stores department.
Four major purchasing activities are selecting suppliers, negotiating the most advantageous terms of purchase
orders: expediting delivery from supplies when necessary to assure delivery in time to meet schedules, and
negotiating any changes in purchase schedules dictated by circumstances: