Question

Which of the following best describes nationalization? (as opposed to nationalism!) Group of answer choices outsourcing of governmental functions to private entities hiring preferences given to locals rather than expatriates government's gradual and subtle actions against a firm forced sale of an MNC's assets to local buyers

Answer 1

Answer: Forced sale of an MNC's assets to local buyers

Step-by-step explanation:

Nationalization is the process of forcing a Multinational Company (MNC) to sell its assets to local buyers or to the Government itself. Sometimes the process does not even involve paying back to MNC.

There are many reasons for a Government to carry out a nationalization policy such as the need to manage one's own natural resources but some economists view this as too much Government interference. One example of nationalization is the US nationalization of airport security after 9/11 to better protect the country.