(a) Differentiate between Nationalization and Indigenization. (b) State six reasons why a country would indigenize...
(a) Differentiate between Nationalization and Indigenization.
(b) State six reasons why a country would indigenize some industries.
Explanation
(a) The difference between nationalization and indigenization: Nationalization is a policy aimed at bringing industries or part of it under exclusive ownership of the government. While indigenization is a policy aimed at transferring the ownership and control of business enterprises from foreigners to indigenes.
(b) Reasons why a country would indigenize some industries:
(i) To make for greater participation of the citizens in the economy of their country.
(ii) To protect the national integrity and security of the country.
(iii) To encourage development of local technology.
(iv) To make for greater economic growth and development.
(v) To reduce unemployment level in the country. More employment opportunities.
(vi) To afford the citizens of the country opportunity for self reliance and economic emancipation.
(vii) To prevent capital flight thus reducing the remittance of profit abroad.
(viii) It encourages the training of local manpower citizen.