Nationalization also occurs if there is a change in government and the political ideology of the government demands a dramatic change in the country’s economic policy. Many times nationalization has been used to promote industries in the country which cannot be made dependent on foreign companies as they cater directly to the people. For example, after Independence from British rule India nationalized its steel industries although it took help from Russia to build steel plant in Rourkela and Bhilai.
The most important reason of foreign intervention is the geopolitical and economic interests of powerful states. The interventions don’t necessarily have to be of military nature. Economic sanction is a weapon often used to punish the country for being too closed for foreign companies. Recently U.K. has imposed economic sanctions on Iran because of its nuclear programs. Other countries are to follow soon. Another case of geopolitical interests is Iraq where the allied forces invaded on the pretext of Weapons of Mass Destruction. But even after the Hans Blix’s report on absence of WMDs, the allied forces continued their operations. Many people argue that the main reason behind the invasion was oil.
In a similar manner corporate interests influence foreign policies of a country. China has been very interfering in the internal matters of its neighboring country Nepal because of the corporate interests. Nepalese market is flooded with Chinese goods. Corporate interests may not lead to military invasions but they certainly influence countries to adopt protectionist measures. Ideological interests in democracy are also as major factor which leads to interventions. Human welfare is also cited one of the major reasons but there is considerable debate about the authenticity of such claims. While U.S. intervention in Iraq was justified for removing
Cite this document
(“Nationalization Essay Example | Topics and Well Written Essays - 1000 words - 1”, n.d.)
Retrieved from https://studentshare.net/geography/476510-nationalization
(Nationalization Essay Example | Topics and Well Written Essays - 1000 Words - 1)
“Nationalization Essay Example | Topics and Well Written Essays - 1000 Words - 1”, n.d. https://studentshare.net/geography/476510-nationalization.
Cited: 0 times
The purpose of it is to reduce the exposure their country’s particular sector and further its growth through proper utilization of domestic consumption…
The author says that Libya and Iran are two oil-rich countries where nationalization of international oil companies have taken place with various legal problems where the International Court of Justice (ICJ) have intervened and have declared various decisions. The large multinational oil companies have attained efficiency.
He argues that cookbooks demonstrate the adoption of a national cuisine in India that includes a wide variety of cultural and ethnic roots, and represents the growing middle class audience they are made for. These cookbooks show a new emerging national sensitivity developing amongst the middle class in India, one which celebrates individual regionalism while synthesizing it into an overall national identity.
On the international front, the nationalization serves to sever the historic amiable relations between Argentina and other countries, particularly Spain. Spain’s unwillingness and incapacity to invest further in Argentina also exemplifies the social implications of the nationalization.
The amount of compensation to be paid by Argentina against its seizure of shares from the company is yet undecided. While nationalization of YPF is expected to act in favor of Kirchner financially and politically, greater concerns cloud around the future investment climate in the economy and its relationship with its largest foreign investor, Spain.
Argentina is reported to have found itself in this unfortunate situation following the privatization of one of its largest oil and gas companies, YPF Oil and Gas Company, in the 1990s (Minder 2012). YPF was later on sold off to the Spanish company Repsol.
The author believes that nationalization of Argentinian oil industry has raised many concerns not only in Argentina, but also in other countries, especially in Spain. Spain has already declared a diplomatic and industrial war with Argentina since the major sufferer of this act happens to be the Spanish company; Repsol.
The new board and the company will operate at arm's length from the government, with complete commercial autonomy for their decisions. Prime Minister Gordon Brown, much to the hesitant approval of Economist.com, has agreed that nationalization was the best solution available.
roups are beginning to lose their sense of uniqueness as the world’s civilizations become more and more Westernized with the onset of full-scale capitalism. This globalization, or inter-nationalization, process has been a hotly debated topic in the media, political and social
(quoted by Yergin and Stanislaw, 1998 p.25) This ideological provision (famously called Clause IV) however did not find a systematic implementation till Labour’s advent to power in 1945 and its subsequent