Unfair Competition

Where government-owned companies compete with privately owned companies, the private companies sometimes complain that the government companies have unfair advantages. Some of the complaints are 1) government-owned companies can cut prices unfairly because they do not have to make profits; 2) they get cheaper financing; 3) they get government contracts; 4) they get export assistance; and 5) they can hold down wages with government assistance.

Another huge advantage state-owned companies have over privately owned business concerns in the form of direct subsidies, payments by the government to their companies.

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