Question

The finance minister of a country considers several large, state-owned iron manufacturing units to be inefficient and a source of corruption. To generate resources for public expenditure and promote economic growth, the government decides to auction an entire iron manufacturing plant to sell it to a strategic investor. This process exemplifies _____.

Answer 1

privatization

Step-by-step explanation:

Privatization is the practice in which a public company or institution is sold to the private sector. In this case, the State ceases to manage a particular entity, turning it to a private company. This term may also refer to the transfer of control of the shares of a particular public company to a private company. It is noteworthy that privatization can occur in a company, an investment or a land.