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?

Consider the benefits and detriments of nationalization and expropriation.

Answer 1

With the world’s nations moving towards market economies many believe that nationalization of foreign industries does not its place. But to be unbiased, it depends on the type of economy it. Developed countries like US and developing countries like India & China should have no room for nationalization of foreign Industries. It is about laisse fraise, where the market should determine the price by unrestricted competition of any sort off players. Today the world is for the survival of the fittest! And for that the economy should have the open policy where every player is unrestricted. This not only improve the relations with other countries but also help is removing stagnation in the domestic market. If there is no competition and pressure for innovation then the domestic market would also not flourish hence it is apt for the developed and developing countries.

But on the other hand, the developing countries cannot 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 survive. 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 restrictions.