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What is the difference between a cartel and a syndicate? Concept and types of business associations. holdings.economic forms of groups of companies: cartel, concern, trust, pool, syndicate, consortium, conglomerate

What is the difference between a cartel and a syndicate? Concept and types of business associations. holdings.economic forms of groups of companies: cartel, concern, trust, pool, syndicate, consortium, conglomerate

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What is a cartel?

A cartel is an alliance of several organizations working in the same field and operating under the same agreement. The main task of the cartel is to monopolize a certain industry, creating a more convenient economic situation for itself.

This form of monopoly association is considered the most primitive, because each of the participating parties retains full economic and legal independence. They are connected only by an unspoken conspiracy, which is not legally supported and is based solely on the trust of the parties, as well as on a system of mutual fines. The cartel develops internal sanctions against violators who try to conduct economic activities that contradict its principles.

Meanwhile, the unspoken and formal nature of cartels makes them extremely vulnerable to antitrust agreements and internal contradictions. Very often, cartel associations break up when faced with the unwillingness of one of the parties to “play by the rules” of the conspiracy. In most countries, cartels are prohibited. Only in some states, cartels are encouraged in order to restructure the economy and limit competition in the small market.

What is a syndicate?

The definition of a syndicate is very similar to what we call a “cartel.” This is also a union of organizations within one industry in order to ensure control over the market. Syndicates operated actively in Russia at the beginning of the 20th century. During the NEP period, syndicates replaced numerous “trusts”. With the transition to a command economy, syndicates in the USSR were liquidated.

The basic principle of the syndicate is that products produced by members of the syndicate are sold through a single distribution channel, after which profits are distributed between the parties based on their share of participation in the association. Thanks to the presence of a single sales market, the syndicate is more stable than the cartel. It is more difficult for the parties to break the agreement, because their freedom economic activity limited.

The formation of syndicates is resorted to by those entrepreneurs who are afraid that they may be deprived of a management position (for example, expelled from the board of directors) or by those businessmen who, in addition to profit, want to get the opportunity to directly manage the company.

At the moment, the syndicate is considered a form of monopoly association that undermines the principles of free trade, and as a result, is subject to antitrust laws.

What is the fundamental difference between a cartel and a syndicate?

The fundamental difference between a cartel and a syndicate lies in the nature of the monopoly agreement. The fact is that a cartel agreement is a conspiracy that has no legal basis. Everything rests either on trust or on coercion. It’s not for nothing that when the word “cartel” comes to mind, the average person comes up with associations with criminal gangs South America, where everything is based on fear and a kind of “code of honor.” All cartel participants retain full independence and can conduct independent financial, legal and economic activities. Despite the presence of fines, any of the participants can leave the cartel, thereby destroying the entire structure. For example, if one of the participants begins to dump (lower) prices, violating price obligations, then the cartel instantly disintegrates.

As for the syndicate, here the participants are limited in their financial activities, since they undertake to unite their distribution points and thereby gain full control over the local sales market. The product is sold through a single channel, so if one of the syndicate members leaves the organization, he loses access to it, and as a result, access to consumers. Thus, the syndicate appears to be a more stable and legally sound structure, although, just like a cartel, it can become a victim of antimonopoly legislation.

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A trust is an association in which various enterprises, previously owned by different entrepreneurs, merge into a single production complex, losing their legal and economic independence. A trust unites all aspects of the economic activity of enterprises, and not just one side, as in a cartel or syndicate. The trust form is convenient for organizing combined production, i.e. combining in one company enterprises from different industries, either representing successive stages of processing raw materials, or playing an auxiliary role in relation to one another.

A trust is a monopoly in which joint ownership of a given group of entrepreneurs will be created for the means of production and finished products. There are two ways of merging into a trust: direct merger of the assets of individual companies and the acquisition by the parent company of the trust of a share of the share capital of the enterprises.

Association of entrepreneurs concept

Business associations: holdings... For practicing lawyers, scientists, entrepreneurs, heads of organizations, members of collegial...Preface. Chapter I. Business associations: concept and types. kadis.ru

Associations of enterprises. Concepts, goals, types | Business vision The concept and essence of a business combination. ...A pool is an association of entrepreneurs that provides for a special procedure for the distribution of profits of its participants. businessvision.rf

Associative forms of business organization

Associative forms of organization entrepreneurial activity represent the association of enterprises or firms into aggregate structures.

Associative forms include the following types of associative structures:

1) corporations;

2) business associations;

3) concerns;

4) consortia;

5) holding companies;

6) cartels;

7) syndicates;

8) trusts.

1. A corporation is Joint-Stock Company, which unites several firms with common business goals.

The corporation is legal entity, which is responsible for all enterprises that are part of it. Among corporations, there are both large-scale and small-scale public corporations.

2. Business associations are associations of organizations and enterprises that are created on the basis of an agreement for the purpose of coordinating common activities and performing similar functions. Members of business associations have the right to join other associations.

3. Concerns are an organizational form of association of enterprises, which is in the nature of monopolies and allows the use of large-scale production opportunities.

4. A consortium is an association of organizations and enterprises that is created on a voluntary basis and is temporary. The consortium is organized to implement major projects in ecology, science, technology, social sphere. The consortium uses monetary and material resources, personnel and capacities of the organizations that are part of it. The consortium may include organizations of various sizes that enter into an agreement with each other. Consortium participants have the right to simultaneously be members of other consortia.

5. Holding companies differ from other associative forms in that they control other companies by appointing their directors, as well as by owning them in cash and shares. Despite the fact that the enterprises included in holding associations are independent, the holding is capable of exerting a great influence on their economic and commercial decisions. If necessary, the holding has the right to redistribute funds belonging to the company's participants, as well as to perform certain functions related to the company's activities.

6. A cartel is an association of legally independent enterprises on a contractual basis, which is engaged in the sale of products produced by these enterprises.

7. A syndicate is a form of association of enterprises for organizing the purchase and supply of raw materials to these enterprises, and the marketing of products produced by them. A syndicate may include trusts, concerns, and enterprises that are legally independent organizations. From the moment of joining the syndicate, the commercial independence of its participants is lost, while production independence is partially maintained.

8. Trusts are a form of association of enterprises in which the participants of this association completely lose their commercial, production and legal independence, while submitting to a single management. In Russian entrepreneurship, this form is used in the construction business.

There are structural specific forms of organizing entrepreneurial activity that have not yet become widespread in the Russian economy, but are actively used in the practice of developed capitalist countries. These include: offshore companies, trust companies, franchisors.

IN Russian practice The creation of branches and subsidiaries of large firms and enterprises has become widespread. These enterprises are legally independent, but are in close financial, production and technological connection with the main enterprise.

International business companies engage in business activities such as importing, exporting and placing capital abroad. Companies that have foreign branches, are registered in several countries and distribute their shares on stock exchanges around the world are called transnational.

According to the legislation, two types of associations of enterprises and organizations can be created and operate: voluntary and institutional. Enterprises have the right to voluntarily combine their scientific, technical, production, commercial and other activities, if this does not violate antimonopoly legislation. Along with voluntary associations, institutional associations are created and operate, the activities of which begin in a directive manner from ministries (departments) or directly from the Cabinet of Ministers. Association - simplest form voluntary association of enterprises for the purpose of constant coordination of economic activities. The Association has no right to interfere in the production and commercial activities of any of its members. A corporation is a contractual association created on the basis of a combination of production, scientific and commercial interests, with the transfer of certain powers of centralized regulation of the activities of each of the participants. A consortium is a temporary statutory association of industrial and banking capital for the purpose of jointly carrying out a major financial transaction(investment in a large industrial project). Concerns are a diversified joint stock company characterized by unity of power and control. Concerns combine enterprises various industries who, as a result of unification, lose their independence. Cartels are a contractual association of enterprises (firms) of the same industry to carry out joint commercial activities (regulating the sale of manufactured products). Syndicates are an organizational form of existence of a type of cartel agreement, which provides for the sale of participants’ products through the creation of a joint sales body or through the sales network of one of the participants in the association (or for the purchase of raw materials). This form of enterprise combination is typical for industries with mass production of homogeneous products. Trusts are a monopolistic association of enterprises that previously belonged to different owners into one production complex. With such a merger, enterprises completely lose their legal, financial and economic independence. Holdings - use their funds to acquire controlling stakes in other enterprises. Companies merged into holdings have legal and economic independence, but the most significant issues are resolved in the holding company. The holding company is engaged only in management and does not conduct business activities. Financial groups are associations of enterprises headed by one or more banks that manage the capital of these enterprises and control various areas of their activities. At the same time, enterprises that are part of a financial group do not lose their economic and legal independence.

Q, units

Definition of monopoly profit:

D – demand;

MR – marginal revenue;

MC – marginal cost

At the optimal positive volume for a monopoly, which allows maximizing profit, provided that the firm does not stop production, marginal revenue must equal marginal cost (MR=MC).

1.2. Forms and types of monopolies

Monopoly has various shapes: corner, cartel, syndicate, industry holding, trust, concern, consortium, conglomerate.

Corner - a method invented by German merchants back in XVI century. The meaning of this method is simple: merchants or manufacturers enter into a secret agreement to buy or temporarily withdraw a product from the market in order to artificially create a shortage and cause prices to rise. After which the goods from the reserves are thrown onto the market, and the participants in the conspiracy receive increased income.

For example, in 1931 members of the International Tin Cartel organized a tin corner. They bought huge amounts of tin and created a rush of demand for it, which in turn caused a sharp rise in prices. Having achieved this, the corner participants sold their metal reserves a year later at a huge profit.

Cartel – an agreement between enterprises of the same industry on sales volumes, prices, sales markets, and distribution of profits. However, the cartel agreement did not concern the production and, especially, supply and sales activities of the enterprise. Regulation by such a monopoly is usually carried out through quotas and the definition of sales areas. A typical cartel is the Organization of Petroleum Exporting Countries (OPEC), which includes 14 countries that produce about 70% of the oil. It sets not only uniform prices for oil, but also distributes quotas for its production.

Syndicate usually represented by an association of enterprises, characterized by the fact that the distribution of orders, the purchase of raw materials, and the sale of manufactured products are carried out through a single sales organization. The syndicate participants are industrially independent from each other, but in commercial terms they do not have freedom of action. The organizational and legal form in which syndicates operate is multifaceted. This can be a joint stock company, limited liability company, additional liability company, general partnership, etc.

Industry holding - a method that consists in buying up controlling stakes in competing firms and thereby establishing economic control over them in order to implement a unified monopoly policy of sales and prices.

More complex forms of monopolistic associations arise when the process of monopolization extends to the sphere of direct production. On this basis, such a higher form of monopolistic associations as a trust appears.

Trust - O an association in which participants are deprived of their production and commercial independence. The trust is managed from a specially created single center. The profit received from the results of the economic activities of this organization is distributed in accordance with the share participation of its member enterprises. In this case, a distinction is usually made between a single-industry trust and a combined, multi-industry trust, when the association captures enterprises in another industry. A combined trust, uniting enterprises from different industries, gets the opportunity to extract additional profit, firstly, through the use of by-products and waste from another industry, and secondly, through the organization of vertical combination, when one enterprise processes raw materials, another produces parts from them, the third turns them into goods, etc. In modern economic life, this form of monopoly organization of production is extremely rare.

Concern - one of the complex forms of monopolistic associations . As a rule, it includes enterprises from various industries, transport, trade and banking. Such an association is undertaken in order to reduce inter-industry competition through a single, centralized management of production, supply, sales of goods, and planning of its implementation actions new technology and a forward-looking strategy for common actions in the future. An important feature of the concern’s activities is, on the one hand, strict internal financial control, and on the other, the economic independence of firms, departments, branches and decentralization of management across main product groups and territories. Its goal is to specialize and integrate its enterprises into a single economic complex. It is believed that a concern is the most developed form of association of enterprises, based on common interests and carried out through a system of participations, financial ties, and personal unions.

Consortium - a temporary union of economically and commercially independent producers whose goal is to implement specific economic projects. The consortium is formed on the basis of an agreement between the participants, which stipulates the share of each of them in the costs, as well as the forms of participation of the project organization, and other conditions for modern activities. Participants in the consortium can be legal entities and individuals, private and public organizations, and the state itself. The consortium is headed by one of its members, whose functions are specified in the agreement.

Conglomerate - With the influence of firms engaged in business activities in various sectors of the economy. This form of monopoly organization is characterized by a high level of decentralization of management, within which production units have fairly broad autonomy. A conglomerate is one of the modern forms of monopolistic associations that arose in the United States in the early 1960s.

The market is dominated by entrepreneurial, state and natural monopolies.

Business monopolies are the most common. They arise as a result of successful competition. There are two paths to this. The first is the successful development of the enterprise, constantly increasing its scale through the concentration of capital. The second (faster) is based on the processes of centralization of capital, that is, on the voluntary merger or absorption of bankrupt winners. But, as a rule, such monopoly is temporary. Sooner or later you have to give way to even more successful competitors.

State monopoly is expressed, on the one hand, in granting individual firms the exclusive right to carry out a certain type of activity, for example, the production of alcoholic beverages, the export of gold, and furs. On the other hand, these are organizational structures for state-owned enterprises, when they are united and subordinate to different departments, ministries, and associations. Here, as a rule, enterprises of the same industry are grouped. They act on the market as one economic entity and there is no competition between them.

Modern Russia maintains the presence of the state in industries that are strategically important for the country. The state's share in stakes in various enterprises varies by industry and main sectors of the economy. Most companies with government participation are in industry, transport, communications and R&D.

TO natural monopolies include industries and enterprises in relation to which the development of competition is impossible, ineffective and inappropriate. They arise in industries where one firm or corporation serves the entire market, for example when it owns the only sources of minerals or raw materials. Also, a natural monopoly arises in those areas where copyright is in force, because the author is a monopolist by law.

There are two types of natural monopolies:

natural monopolies .

The birth of such monopolies occurs due to barriers to competition erected by nature itself. The law protects the rights of the owner, even if he ultimately turns out to be a monopolist (which does not exclude regulatory intervention by the state in the activities of such a monopolist) technical and economic monopolies

Their occurrence is dictated by either technical or economic reasons associated with the manifestation of economies of scale. Large natural monopolies in the Russian Federation are the companies Gazprom, RAO UES of Russia, and the Ministry of Railways. Occupying only 4% of workers and employees, these three monopolies provide 13.5% of GDP, 20.6% of investments, 16.2% of profits, 18.6% of tax revenues of the consolidated budget of the Russian Federation. The role of Gazprom is especially great due to its export potential: it provides more added value than RAO UES and the Ministry of Railways combined, employing only 300 thousand employees, and profits and taxes are twice as much as them. The existence of natural monopolies is explained by a special effect associated with the scale of production - the effect of saving resources as a result of the consolidation of production. Due to better technical equipment and greater power large enterprise There is an increase in labor productivity, which means a decrease in costs per unit of production. This means more efficient use of resources. The macroeconomic aspect of the problem is also important. Infrastructure networks, which are natural monopolies, ensure the interconnection of economic entities and the integrity of the national economic system. It is not for nothing that they say that in modern Russia the economic unity of the country is not least determined by common

railways

, general electricity and gas supply.

K. Marx said: “In practical life we find not only competition, monopoly and their antagonism, but also their synthesis, which is not a formula, but a movement. Monopoly creates competition, competition creates monopoly. The synthesis is that a monopoly can be maintained due to the fact that it constantly enters into competitive struggle.”

The most important factor in the effective development of a country's market economy is competition. Competition (Late Latin concurrentia - collision, from concurrere - to collide) is a competition between economic entities when their independent actions effectively limit the ability of each of them to unilaterally influence the general conditions of circulation of goods on the corresponding commodity market. Such competition is inevitable and is generated by objective conditions: the complete economic isolation of each manufacturer, its complete dependence on market conditions, and confrontation with all other commodity owners in the struggle for consumer demand. The market struggle for survival and economic prosperity is the economic law of the commodity economy.

Competition serves as the main regulatory mechanism in a market economy. “This is the force that subjects resource producers and suppliers to the dictates of the buyer or consumer sovereignty. In competition, it is the supply and demand decisions of many sellers and buyers that determine market prices.”

A competitive market involves the presence of an unlimited number of sellers, as well as a situation in which each of them does not have the opportunity to influence the price. Here there is also free, unhindered access of economic entities to any type of activity, information about the state of the market and possible alternatives is clear and accessible to everyone; here there is a dictate of the consumer over production. All this testifies to the dominance of free competition.

Healthy, normal competition is achieved with equality of subjects of market relations, understood not only as equality in the market of commodity producers, but also as equality in relations between all market subjects: producers and consumers, production structures and market infrastructure, government bodies and structures of a market economy.

But the insecurity of competition pushes entrepreneurs to try to evade it, and this is only possible by gaining a monopoly position. The advantages of a monopoly position are so attractive that the desire for a monopoly takeover of the market, ousting competitors in order to obtain monopoly high incomes is an objective reality.

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What is the difference between a cartel and a syndicate? Concept and types of business associations. holdings.economic forms of groups of companies: cartel, concern, trust, pool, syndicate, consortium, conglomerate

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