Privatisation and Nationalisation (Leaving Cert Business): Flashcards
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Practise the cards
10 cards from this deck
Privatisation definition
Privatisation definition
Selling state-owned businesses to private investors
Nationalisation definition
Nationalisation definition
Government taking control of privately-owned businesses
Irish privatisation example (2015)
Irish privatisation example (2015)
Aer Lingus sold to IAG for €1.5 billion
Irish nationalisation example (2009)
Irish nationalisation example (2009)
Anglo Irish Bank taken over by government
Privatisation benefit: revenue
Privatisation benefit: revenue
State receives substantial funds from sale
Privatisation benefit: efficiency
Privatisation benefit: efficiency
Profit motives drive waste reduction & better performance
Privatisation challenge: strategic control
Privatisation challenge: strategic control
State loses control over vital industries (transport, energy)
Privatisation challenge: employment
Privatisation challenge: employment
Private firms streamline operations, reducing staff numbers
Nationalisation benefit: services
Nationalisation benefit: services
Ensures vital services continue for all citizens
Nationalisation challenge: cost
Nationalisation challenge: cost
Requires significant government investment & taxpayer burden