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'The government is going to privatise the long awaited rural broadband network.' (Source: Irish Independent, July 2016) (i) Explain the meaning of the term privatisation - Leaving Cert Economics - Question c - 2017
Question c
'The government is going to privatise the long awaited rural broadband network.' (Source: Irish Independent, July 2016) (i) Explain the meaning of the term priv... show full transcript
Worked Solution & Example Answer:'The government is going to privatise the long awaited rural broadband network.' (Source: Irish Independent, July 2016) (i) Explain the meaning of the term privatisation - Leaving Cert Economics - Question c - 2017
Step 1
Explain the meaning of the term privatisation.
Answer
Privatisation refers to the process of transferring the ownership and management of a state or government-owned enterprise to private individuals or companies. This can involve selling off assets or shares of the government entity, making it operated by private sector principles rather than by public policy.
Step 2
Outline two economic advantages of this investment in broadband for rural areas.
Answer
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Access to Internet (for individuals and businesses): With improved broadband connectivity, individuals and businesses in rural areas will have quicker access to the internet and Wi-Fi. This facilitates enhanced access to resources, information, and services, thereby improving overall economic activity and standard of living.
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Economic Growth: The investment in broadband infrastructure can stimulate economic activity in rural areas, potentially leading to an increase in employment. As businesses can operate more effectively with reliable internet access, it encourages more entrepreneurs to set up and expand operations in these areas.