Big business

Business is business.Its lead actors of the market economy, state authorities with the help of borrowed funds under his responsibility or his agents.The main objective of the above activities is to make a profit on the further development of the enterprise.

Big business - is today one of the pillars of the economy.Large firms at the expense of their resources are dependent on market conditions, to a lesser extent.In other words, big business has a reserve (reserve) resources that can be used in the event of adverse market conditions.In addition, many large firms due to its high proportion of influence on the market (for example, changes in prices).This in turn leads to attempts monopolization as reducing competition.In this context competition policy is conducted in relation to the biggest companies.

Large business - enough volume definition.This concept is characterized by the union of several companies around a specific process chain, product group or general group of senior managers and owners.A

key measure of association is considered to be a large volume of sales of goods and services (turnover) as well as the size of the market capitalization and profit largely depends on the assumed behavior of players in the stock market or accounting system.

should be noted that large firms make a significant contribution to the development of many industries, particularly high technology (complex) and capital (consuming capital).Often, estimating indicators of production of certain products, it is clear that the greatest progress was able to make it a big business.Large corporations are able to develop the design and mass production of ships, automobiles, power equipment, agricultural machinery, semi-finished products and materials (plastic, aluminum, steel).In addition, large enterprises can organize mass production of ore, oil, gas and other raw materials.All this causes a certain ambivalence toward the state to large enterprises.On the one hand, they try to limit the means of anti-monopoly policy.On the other hand, supported by big business as the basis for capital-intensive and knowledge-intensive areas.

In many developed countries, large-scale enterprises occupy a leading place in the economy.Usually, big business accounts for 50 to 60% of GDP (gross domestic product).Certainly, large companies dominate in many branches of engineering (instrumentation, electrical industry, transport engineering), chemical industry, fuel and energy complex, ferrous and non-ferrous metallurgy, mining industries.

Big business contributes to the concentration of production in a number of service industries.In particular, this applies to higher education, software production, finance, health, trade and other areas.For example, in America, the share of large-scale enterprises account for about 47% of the workforce and 60% of GDP.

Russia more forms are considered more effective than the bulk of the small and medium-sized companies, and in terms of growth and in terms of performance and profitability.The special position of Russian big business has allowed for the period of reform to concentrate the main financial flows.As a result, large firms were able to organize a fairly strong team of highly skilled and highly paid managers.At the same time, the size of large enterprises in Russia is noticeably smaller than in other developed countries.