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Statement: Should the maintenance of all roads in the big cities be entrusted to private companies?Arguments:I. Yes, this is the only way to ensure good conditions of the roads throughout the year.II. No, private companies are not capable of maintaining all the roads.
The correct answer is 3.Privatization defines as the transfer of ownership, management, and control of the public sector enterprises to the private sector.Privatization aims at providing a strong base for the inflow of Foreign Direct Investment.The enhanced inflow of FDI improves the financial strength of the economy.Government companies are converted into private companies in two ways:Transfer of Ownership and Disinvestment.Thus, we cannot conclude that private companies are incapable of maintaining all the roads. Hence, argument 2 is not strong.Privatization can lead to better services but saying that this is the "only way" is wrong. So, neither argument 1 nor 2 is strong.Additional InformationHowever, there are six methods of privatization:Public sale of sharesPublic auctionPublic tenderDirect negotiationsTransfer of control of enterprises that were controlled by the state or by municipalitiesLease with a right to purchase
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