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Assume that the Government of Fiji seeks your advice on how to fully privatize inter-island shipping services to the islands in Lau. Because of the remoteness of the islands of Lau, the small populations of the islands and small amount of cargo, commercial shipping services are non-viable to the more remote southern islands.
Describe how the following forms of privatization may be packaged together to enable the shipping services to be completely privatized.
Contracting out shipping services under a franchise arrangement.
Leasing of government interisland ships.
Provision of grants to shipping companies to subsidise uneconomic routes
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Because of the free-rider problem
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Mr. Bond who owns Spectre Road Construction Co. and runs it as a proprietorship, had a before-tax income last year of $140,000. His personal and family expenses are $50,000 and he has $10,000 in exemptions and deductions. If he paid himself a salary ..
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Explain why Blazo's performance from providing these services to ABC Company and other firms will decline if economic growth is reduced.
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