Nationalisation

Question 1

Nationalisation.

Answer 1

Process by which a firm or an industry is taken into a state of ownership

Question 2

What market is nationalised?

Answer 2

Natural monopoly

Question 3

Commanding heights

Answer 3

Key Strategic sectors of the economy (utilities, natural resources , national /international trade )

Question 4

Advantages of nationalisation

Answer 4

Gov funded thus large scope of investment into things like better quality capital/machinery or increased employment

Government presence reduces potential for illegal/unethical practices

Revenues created can be used instead of tax income

Question 5

Disadvantages of nationalisation

Answer 5

Costs increase impacting ability of resources to be distributed efficiently

Process is at public expense

Maintaining low prices increase public revenue, cannot happen government would often maintain a loss

Question 6

Examples of nationalisation

Answer 6

Coal industry , railways and NHS