(a) Define the following terms (i) nationalization (ii) Indigenization (iii) commercialization (iv) privatization (b) state four reasons why government shou...

(a) Definition of terms

1. Nationalization: This is the act by which government takes over the ownership and control of privately owned business enterprises, with or without compensation, and runs them in the interest of the public.
2. Indigenization: This is a policy that transfers the ownership and control of businesses from foreigners to citizens (indigenes) of a country, so that nationals participate more fully in the economy.
3. Commercialization: This is the reorganization of a public enterprise so that it is run strictly on business (profit-making) lines to become self-financing, though government may still retain ownership.
4. Privatization: This is the transfer of ownership and control of a government-owned enterprise to private individuals or companies, wholly or partly, through the sale of shares.

(b) Four reasons why government should participate in business

1. To provide essential and social services such as water, electricity and health that private investors may neglect.
2. To undertake capital-intensive projects like railways and refineries which require huge capital beyond private means.
3. To prevent exploitation of consumers by private monopolists through high prices and poor quality.
4. To create employment and reduce unemployment in the economy.