what does it mean for a country to nationalise a company ?

32 views

what does it mean for a country to nationalise a company ?

In: 2

The business will be under the direct control of the government, or the government has majority control over the business. Meaning the primary goal of that business is not to make money for profit but instead work in the interest of the government.

The government mandates (official decree, passing a law, whatever) that Company X now belongs to the Government. Prior owners/stockholders of X may or may not be compensated, depending on what the Government decides.

Nationalizing a company has a chilling effect on international corporate investment. If companies are routinely seized if they make too much money or print something the government doesn’t like, then investors will take their money someplace else where this doesn’t happen, like the EU/US

[removed]

it means the country’s government takes ownership control of the company away from shareholders, partners, individual owner, etc.

Lets say you have a lemonade stand in your front yard. This stand makes lots of money and is very profitable so you give some to your mom and dad. Unfortunately your mom and dad have both lost their jobs. The bills start pilling up and your sibling tell them they can run the business much better than you and keep all the money for the family. It makes sense as they own the house and property. They then take over the stand and keep all the money.

There is a difference between nationalization and provisions of public utility. Most public utility is a local matter, supported federally to maintain federal standards. Look at what happens in Venezuela when the Gov. Decided they owned the oil. Even though rhe development of the industry in the state was priv a te investment. The government in that case stolen from private investors for there own enrichment. NATIONALIZATION IS USUALLY THEFT… PATHETICALLY RATIONALIZED.

Anything that used to belong to the company is now government property. Think of it like theft, except the government gave itself permission to do it, so it’s technically not theft.