Sheffield Forgemasters nationalised. #economics #econ3

Nationalisation is when the state transfers a company from the private sector to the state sector.

The a government today nationalised Sheffield Forgemasters. They did this to  ensure the supply or component products for the defence industry. In addition the steel industry has been struggling to compete with foreign suppliers who can manufacture steel for a lower cost of production.  The nationalisation will also help to protect jobs. Sheffield Forgemasters has struggled financially in recent years often making a loss.

Questions

1;) What are the disadvantages of nationalisation? Undertake some research

2:) Draw a diagram to represent a loss that was being made.

3:) What factors may cause Sheffield Forgemasters to have higher production costs that rival foreign steel producers?

Original article

https://www.theguardian.com/business/2021/jul/28/sheffield-forgemasters-nationalised-after-takeover-ministry-of-defence?CMP=Share_AndroidApp_Other