State-Owned Enterprises and Privatization

State-Owned Enterprises (SOEs) are businesses owned and operated by the government, providing essential services like transportation or utilities. The goal is often to promote public welfare rather than profit. Privatization is the process of transferring ownership of these enterprises to private individuals or companies, aiming to improve efficiency, reduce government costs, and boost economic growth. However, it can also raise concerns about accessibility and fairness, as private companies focus on profit. In international industrial economics, these dynamics influence global trade, competition, and economic policies across countries.