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Edco Exam Papers here:



(a) This is the selling of a state-owned company to the private sector. This is done by offering shares to the public in a flotation on the stock exchange, e.g. the sale of eircom to private investors.

(b) A positive impact is that it provides revenue to the state which can be spent on infrastructural projects to promote development. A negative impact could be an increase in unemployment as jobs may be cut for greater efficiency.