This document defines and provides examples of multinational companies, nationalization, and privatization. Multinational companies operate businesses across multiple countries but are managed from a single home country, gaining advantages like cost reductions but also disadvantages like removing jobs. Nationalization occurs when a government takes over an industry, while privatization is the reverse where a government-owned industry is turned over to the private sector, as with an Indian school that was privatized in 2010.

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. Nationalization and Privatization

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