This document defines and provides examples of multi-national companies, nationalization, and privatization. Multi-national companies operate businesses in multiple countries but are managed from one home country. Nationalization occurs when a government takes over an industry, such as for essential services or products. Privatization is the reverse, where government-owned industries are transferred to private ownership, such as a school being privatized. The document discusses advantages and disadvantages of multi-national companies, nationalization, and privatizing a school.

1. Grade 7

2. SuccessCriteria
• Define Multi national companies using
examples
• What is Nationalization using examples
• What is Privatizations with examples

3. Multi-National Companies
It is an organization which owns and controls
businesses in other countries other than the country
of incorporation
An enterprise which operates in many countries
but is managed from one home country.
It is also known as trans-national companies

5. Advantages
gain cost advantage-
access to raw materials
Reduce cost of
production
less trade barriers
creates employment
opportunities

6. Disadvantages
higher
environmental costs.
Import skilled Labor
put other companies
out of business
remove jobs from
their home country

7. Privatization and Nationalization

8. Nationalization
• The government taking over of an industry is called
Nationalization.
• One of the main reasons of nationalization is that there is a
fear that an essential product or service might be
discontinued to less viability in operations.
• It can happen with or without compensation.

9. Privatization
• Privatization is the reverse of nationalization where government owned
industries are turned over to private sector.
• For example, Ghiyasuddin School which was established in 1999 as a
government school which was later owned by Shri Educare Pvt Ltd, India, in
2010 under the public private partnership project.

10. Activity 4.14
• Assume one of the public school is privatized. Discuss the
advantages and disadvantages of privatizing the school.

11. Quiz time
https://quizizz.com/admin/quiz/5f7b1c7e263319001dd5d81a/multinational-
companies