Privatization

Privatization 

Privatization is as the selling of the state owned assets to the private sector the best known form of privatization include the denationalization, Selling of nationalized industry. The terms also includes the selling of state own share to the private companies. The selling of council flat to the setting tenants and competitive tendering regarding disposal of garbage or londry services in hospital.when govt. full in loss regularly basis then looking for the private sector to overcome the loss.  

Horizontal Integration

When two firm belonging to the same industry and at the same stage of production marge together it is know as horizontal integration. In case of horizontal integration the firm produce their value with the same quantity.within a same industrial area a firm can able to marge with the others that fulfill the terms and conditions of margins .

For Example;
Copper and Swiss confectionery must together it would be horizontal integration.

The main objective of horizontal integration are,

1) To act like monopolist and rising the price by reducing the competition between them.
2) To minimize advertize cost.
3) To Maximize the profit
4) To control the particular market.
5) To Increase efficient and effectiveness.
6) To Increase the brand value.
7) To Ensure the effective use of resources