Taking care of the balance of payments and terms of trade was very essential in enhancing the prosperity of the fight against the financial crisis (Gourevitch, 1992). In order to control the wealth within the economy, the French government decided to nationalize the ornament and aircraft industries.
The controlling of the wealth within the economic was very essential in reducing the out flow of cash thus enhancing the proper ways of correcting the balance of payments as well as the terms of trade. Balance of payments and terms of trade are very influential in the financial markets (Moran & Wright, 1991). When an economy receives a lot of money from other countries through sale of products then this increases the amount of money in circulation hence reducing the value of the currency of that country.
Nationalization unlike privatization was to ensure that such industries do not borrow when met with financial insufficiency. The government was to provide some part of the capital to enhance the continued productivity of these two important industries within the economy.
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