WAEC Commerce 2003 Theory question 110

(a) Indigenisation is a government policy of transferring ownership and control of businesses from foreigners to citizens of the country (e.g. Nigeria's Enterprises Promotion Decrees of 1972 and 1977).
(b) Advantages (any four): gives citizens control of the economy; profits stay in the country instead of being sent abroad; develops local entrepreneurs and managers; creates jobs for citizens; reduces foreign domination and exploitation; encourages local savings and investment.
Disadvantages (any four): discourages foreign investment; shortage of local capital and managerial skill, leading to inefficiency; transfer of technology may slow down; shares concentrated in the hands of a few rich citizens (fronting); fall in production and quality; loss of foreign exchange inflow.

Four points on each side in (b).