Nationalization is when private property or industry is taken over by the government. Countries usually choose to nationalize portions of a specific industry, and they do it for different reasons.

If an oil-producing country’s oil drilling operations are owned mostly by foreigners, for example, the government might choose to nationalize all drilling operations to get rid of the excessive foreign influence.

Sometimes countries with struggling industries choose to nationalize certain sectors of the economy so that government resources can be used to help those industries develop. When the U.S. government spent money bailing out big banks during the economic crisis, some people thought it was a step toward nationalizing the financial sector.

In French, laissez-faire means “leave alone.” In finance, laissez-faire refers to an economy or industry that is left to work on its own without the government making rules about what people can and can’t do.

But something we hadn’t really thought enough about is how the disaster affects where Japanese people choose to spend their money. It seems obvious now, but Japanese tourism to Hawaii has dropped by a full 25% since March 11th. That’s a big deal for the Hawaiian tourism industry, which is now spending $3 million on “emergency marketing” to woo travelers from other nations.

See what happens when you put all your eggs in one basket? Diversity really is more than just a corporate buzzword. (Full disclosure: we hate the word “buzzword.”) In work, school, government, AND your investment portfolio, diversification can protect you from unpredictable events and their domino effects.

Fortunately, Hawaii still has plenty of appeal to pasty New Yorkers like ourselves, who are happy to contribute to the state’s critical tourism revenue stream.

Barring an unforeseen volcanic eruption, that is.

The recession has caused a lot of problems for our economy, no doubt. But some industries look like they’re just not going to pull through. Specifically, these ten:

(from The Wall Street Journal)

Good old supply and demand at work. Why buy a newspaper when you can get your news online for free? Why pay for photofinishing when most of your snapshots don’t make it past Facebook?

Are YOU still spending money in any of these industries?

(Bonus points if you can find an industry on this list that wasn’t at least partially laid to rest by the Internet!)

Yet America remains by far the No. 1 manufacturing country. It out-produces No. 2 China by more than 40 percent. U.S. manufacturers cranked out nearly $1.7 trillion in goods in 2009, according to the United Nations.

The story of American factories essentially boils down to this: They’ve managed to make more goods with fewer workers.”

What do you think?

What if higher production adds up to fewer jobs? Is efficiency always a good thing?

How often do you see “Made in U.S.A.” on the products you buy? How about “China?”

• The city of Prato in Tuscany has always been known for its quality textile production, but recently the industry has been taken over by Chinese companies known to use illegal labor and imported materials to feed a new low-end, “fast fashion” industry.
• Part of the immigrants’ success in exploiting the local economy involves clever maneuvering around Italian laws and regulations. Companies operating in a “gray market” are not technically breaking any laws – they comply with most regulations – but neither are thy upholding the spirit of the laws. For example, a textile producer may refuse to inquire into whether his subcontractors use illegal labor.
• The issue is sensitive in Italy, where immigration is a controversial and emotional subject. Some believe the situation in Prato is an intentional attempt at economic colonization by the Chinese government.

Facts & Figures

• Since 2001, half of Italian-owned textile businesses in Prato have been replaced by Chinese-owned textile businesses.
• Prato represents 27% of all Italian fabric imports from China.
• Approximately $1.5 million a day is directed from immigrants in Prato back to China, though it seems that much of that money is not being claimed on tax forms.
• Prato is home to about 25,000 mostly Chinese illegal immigrants.

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