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Policy and the financial sector · 16 of 33

Privatisation, nationalisation and deregulation

Weigh the case each way on selling or taking back public firms

Key terms
Privatisation
Privatisation is the transfer of a firm or an industry from government ownership to private ownership, usually by selling its shares.
Nationalisation
Nationalisation is the transfer of a firm or an industry from private ownership into government ownership and control.

Other ways to bring competition into public services

Can you name the three other tools governments use alongside ownership?

Each changes how a service is supplied or priced without, by itself, changing who owns the firm.