Question

With most of the world's nations either having moved or are in fact moving to market economies, does the nationalization of foreign insudtries and property have its place?

Answer 1

With the world nation moving towards market economies many believe that nationalization of foreign industries don't its place but to be unbaised it depends on the types of economy it development countries like USA and developing countries like China and India should have no room for nationalization of foreign industries it is about laisse Fraser where the market should determine the price by unrestricted competition of any sort off player today the world is for the survival of the fittest and for that the economy should have the open policy where every player unrestricted this not only improve the relation with other countries domestic market if there is no competition and the pressure for innovation then the domestic market would also not flourish hence it is for the developing countries

But on the other hand the developing countries can't blindly follow the above they are there in the nascent stage and the economy itself it trying to stabilize on its own under such scenario it is important to maintain nationalization of the industries so that the domestic market survey foreign players are so huge that they can play on their economies of scale and wipe off the full domestic market hence in that case there should be restriction

Nationalization is the process of transforming private asset into asset by bringing them under the public ownership of a national government or state . Nationalization usually refers to private assets or assets owned by lower level of government such municipalities being transferred to the state the opposite of nationalization and demutualization .

Major extractive industries are easier to nationalize because politicians can literally send in the troops occupy and take over operation this require much less expertise than nationalizating high tech firm

Although government may want to nationalize are foreign investment many investments for engine plants to bank- require inputs and outputs from the parent firm oil and minerals only require buyer and there are plenty

High natural resources prices often lead to backlashes against oil and minerals companies in both developed and developing countries