Economic Sectors
Government-owned corporations often operate in sectors where there is a natural monopoly, or where the government has strategic interest. However, government ownership of industry corporations is common.
Nationalization also forcibly converts a private corporation into a government-owned corporation.
In most OPEC countries, the governments own the oil companies operating on their soil. A notable example is the Saudi national oil company, Saudi Aramco, which the Saudi government bought in 1988 and changed its name from Arabian American Oil Company to Saudi Arabian Oil Company. The Saudi government also owns and operates Saudi Arabian Airlines, and owns 70% of SABIC, as well as many other companies. They are, however, being privatized gradually.
Read more about this topic: Government-owned Corporation
Famous quotes containing the word economic:
“... the living, vital truth of social and economic well-being will become a reality only through the zeal, courage, the non-compromising determination of intelligent minorities, and not through the mass.”
—Emma Goldman (1869–1940)