Privatization has provided many opportunities for foreign firms to enter transition economies by ________.
A)initiating joint ventures with local businesses
B)purchasing former state enterprises
C)exporting products with a high mark-up price
D)exporting products of inferior quality

Question

Quizplus · Accepted Answer

Privatization involves the transfer of ownership from the state to private entities, which can include foreign firms. The most common way for foreign firms to enter transition economies through privatization is by purchasing former state-owned enterprises. Initiating joint ventures with local businesses may also be a possibility, but this is not necessarily linked to privatization. Exporting products with a high mark-up price or of inferior quality are not related to privatization itself.

Privatization Has Provided Many Opportunities for Foreign Firms to Enter