Growing crops and extracting the earth’s natural resources
Providing services to consumers and industry
converting natural resources into finished goods
transporting goods to the final consumer.
Agricultural output is more important than services
As consumers have little money to spend they use most of their income to buy manufactured goods
Most workers are employed in manufacturing products in these countries
As consumers, incomes are high they spend more on services such as hotels and leisure.
All resources are owned by the state (government)
There are only secondary industries
all resources are privately owned
Some resources are owned by the state and some are privately owned.
Government control makes sure that all incomes are equal.
As there is no competition, money will not be wasted on advertising
Everyone will always have work if they want it.
Businesses are free to compete with each other and prices will be kept low.
Hotels and restaurants
Health and public transport
Building and taxi services
food shops and farming
When private limited companies convert into public limited companies
When a partnership converts into a private limited company
When a state owned industry is sold into the private sector
When a private sector business is purchased by the government
Jobs might be lost as the private owners will try to cut costs and increase profits.
The government will raise large sums of money which could help to reduce taxes.
There will be less competition than when the industry was a nationalised monopoly.
Politicians will now influence business decisions.
Number of employees
Value of sales
Value of capital employed
Number of computers used
To keep control of the business
To make higher profits
To encourage competition
To avoid publicity
An oil company and an insurance company merge.
A shoe shop buys out the factory making shoes.
A steel firm takes over a coal mine that supplies coal.
Coca-Cola takes over a small soft drink business.
Diversify into a completely different industry
Reduce competitors supplying the same product
Control the supply of raw materials needed for production
Obtain higher market share
The consumers demand specialist products or services
There are great opportunities for economies of scale
The industry is owned by the state
the market is very large.