What is the process called when ownership and control of an industry moves from the private sector to the government?

What is the process called when ownership and control of an industry moves from the private sector to the government?

• A. Nationalisation
• B. Privatisation
• C. Deregulation
• D. Liberalization

Answer: (A)

The process is nationalisation. It happens when the government takes ownership and control of an industry that was previously run by private firms, often using public funds to buy the assets and then running the industry as a state-owned enterprise. This contrasts with privatisation, where the government sells these assets to private owners. Deregulation removes rules and restrictions, not ownership, while liberalization reduces barriers to trade or competition without necessarily transferring ownership. So, moving ownership and control from private to government fits nationalisation.

The process is nationalisation. It happens when the government takes ownership and control of an industry that was previously run by private firms, often using public funds to buy the assets and then running the industry as a state-owned enterprise. This contrasts with privatisation, where the government sells these assets to private owners. Deregulation removes rules and restrictions, not ownership, while liberalization reduces barriers to trade or competition without necessarily transferring ownership. So, moving ownership and control from private to government fits nationalisation.