Explain each of the following: (a) Nationalization, (b) Commercialization, (c) Privatization and (d) Joint ventures.

These four terms describe different arrangements of business ownership and control.

• (a) Nationalization. This is the transfer of ownership and control of a privately owned business or industry to the government (the state). The enterprise, formerly in private hands, becomes public property and is run in the interest of the whole nation.
• (b) Commercialization. This is the reorganisation of a government-owned enterprise so that it is run on business (profit-making) principles, without being sold to private owners. The enterprise remains state-owned but must cover its costs and operate efficiently like a private firm, with reduced government subsidy.
• (c) Privatization. This is the transfer of ownership and control of a public (government-owned) enterprise wholly or partly to private individuals or firms, usually through the sale of its shares. It is the opposite of nationalization.
• (d) Joint ventures. This is a form of business in which two or more parties (for example the government and private investors, or a local firm and a foreign firm) come together to own, finance, and manage a business enterprise, sharing the capital, risks, control, and profits according to agreement.