Business – 6.1 External influences – Political and legal | e-Consult
6.1 External influences – Political and legal (1 questions)
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Model Answer:
Nationalisation can simultaneously improve equity while posing challenges to efficiency. The table below summarises the main impacts.
| Dimension | Potential Positive Effect | Potential Negative Effect |
| Equity | Universal coverage ensures all citizens, regardless of income, can access essential services. | Resource constraints may lead to rationing, affecting quality for higher‑need patients. |
| Efficiency | Centralised procurement can achieve economies of scale for medicines and equipment. | Bureaucratic decision‑making may delay service delivery and reduce responsiveness. |
| Financial Sustainability | Government can allocate funds based on public health priorities rather than profit motives. | Heavy fiscal burden may divert resources from other development needs. |
In practice, countries such as Thailand have shown that strong regulatory frameworks and performance‑based incentives can mitigate efficiency losses while preserving equity.