takeover of a private company's assets or operations by a government. The company may or may not be compensated for the loss of assets.
takeover of a private company's assets or operations by a government. The company may or may not be compensated for the loss of assets. In developing nations, an operation is typically nationalized if the government feels the company is exploiting the host country and exporting too high a proportion of the profits. By nationalizing the firm, the government hopes to keep profits at home. In developed countries, industries are often nationalized when they need government subsidies to survive. For instance, the French government nationalized steel and chemical companies in the mid-1980s in order to preserve jobs that would have disappeared if free market forces had prevailed. In some developed countries, however, nationalization is carried out as a form of national policy, often by Socialist governments, and is not designed to rescue ailing industries.
