Advantages of Nationalization

1. It helps to check exploitation: Just like I have discussed before, Nationalization of helps to stop exploitation by foreign and private businesses in the nation. When the government take control of the business, citizens will enjoy because the government might provide that same service for free or fore a lesser amount.

2. It ensures steady supply of essential services: When essential services like water supply is owned by private individuals in a country, it won’t be as efficient as when it is owned by the government. Thus, nationalization is a way of through which can ensure efficiency in the supply of some goods or services.

3. Encourages efficient use of resources: It encourages more efficient use of economic resources.

4. Protection of strategic industries: The government can also nationalize a business due to the fact they the business is so important that it should not be allowed to be in the hands of a private individual or foreign investor.

5. Ensures equitable distribution of resources: Since the sole aim of the government is to provide for the needs of the whole nation, nationalization of businesses tends to benefit every part of the country more than when those businesses were owned by private individuals. It ensures equitable distribution of resources as well as correct any imbalance in the means of production.

6. Elimination of Monopoly: This is also one of the major advantages of nationalization. By taking over privately owned and foreign companies, there is a large decrease in private monopoly.

7. Mobilisation of capital: When a business is nationalized, large capital can be mobilised to ensure large scale investment.