IGCSE Business Studies Practice Exam 2025 – Complete Study Guide

Nationalization refers to the process by which a government takes ownership and control of private industry or assets. The outcome that is typically associated with this process is greater government control over important industries. When industries are nationalized, the government aims to manage and operate them in a way that aligns with public interests, which can include providing essential services, safeguarding jobs, or stabilizing key economic sectors.

This control allows the government to implement policies that may prioritize social welfare over profit, regulate pricing, and respond to market failures more directly. In sectors like healthcare, transportation, or energy, nationalization can help ensure that services are available to all citizens and not just those who can afford them.

The other outcomes listed do not accurately reflect the general consequences of nationalization. For example, while there may be instances of increased profitability for private owners in some contexts, nationalization typically shifts profits away from private individuals to the state. Additionally, nationalization does not lead to reduced government influence on the economy; instead, it often reinforces government intervention. While nationalization can impact private enterprise, it does not necessarily eliminate it completely, as many economies can still have a mixed structure that allows for both state-owned and privately-owned businesses to coexist.