(a) What is E-Commerce
(b) State four advantages and four disadvantages of privatization
Explanation
a. E-commerce-electronic commerce is defined as buying, selling and distribution of goods and services through electronic media/internet.
b. Four advantages of privatisation
(i) It saves government the funds usually budgeted as subsidies to such businesses
(ii) The government gets a lump sum revenue from the privatisation for other essential services
(iii) It helps in the development of private sector businesses because individuals are encouraged to participate in business.
(iv) It encourages foreign investment as some buyers of privatised enterprises are foreigners
(v) It encourages the training of entrepreneurs and the acquisition of skills and technical know-how
(vi) It promotes efficiency in the privatised industries be-cause firms aspire to make profit
(vii) It removes government monopolies in business
Four disadvantages of privatisation
(i) It leads to job losses thereby worsening unemployment
(ii) The privatisation process is often bedeviled by corruption and lack of transparency and equity/uneven distribution of wealth
(iii) It leads to arbitrary increase in the market prices of goods and services of the privatised enterprises as against the formerly subsidized prices
(iv) It makes government in power to be unpopular
(v) It may confer monopoly power to the new owners.