What effect will the privatization of currently state-run enterprises have on the employment levels in those enterprises in the short run? and in the long run?
In the short run, employment will drop as the enterprise will have to reduce operating costs to make a profit. In the long run, privatization is usually beneficial in terms of profitability and employment growth. It depends upon the enterprise. One of many privatized industries that failed was Sabena Airlines. so did many factories in former East Germany. See http://www.cnn.com/WORLD/europe/9911/08/germany.carpetbaggers/
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