Nationalization takes place when a government takes over a privately held asset. When countries fall into communist hands, companies have no choice but to leave a country and turn over their assets to government officials.
Privatization often takes place in capitalist countries but not always. Privatization takes place when a government held asset is sold to a private company or individuals.
Sometimes, governments own monopoly companies which exploit natural resources owned by a country such as natural gas, oil or minerals. Governments also create government managed companies to operate utilities or serve a vital national interest.
Read this article concerning Pemex, a government run oil company in Mexico.Pemex has held a monopoly on oil drilling and exploration in Mexico. Recently, the Mexican government has opened up the country to oil exploration and drilling by private firms. Why do you think they are ding this? Do you think privatizing the oil industry would be a good idea?
Some have advocated privatizing healthcare in the United States. Read the following article. What do you believe is the strongest argument for universal healthcare? What is the strongest argument against it? Do you think it would be a good idea or not?
Assignment: After reading both articles above, write a typed or handwritten paper to answer the questions. Turn your paper in at the end of class.
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