cartel - an association of several firms in the same industry, with the aim of regulating prices, terms of sale, spheres of influence, in production, licensing, hiring workers, the conditions of sale of the goods.It can be attributed to simple monopoly unions.Companies participating in the merger, remain legal, industrial, financial and commercial independence.
agreement a large number of enterprises of the same industry - this is what, in fact, is a cartel.The definition of this concept has been known for several centuries ago.In Western countries, companies such activity is considered an economic crime, so the anti-monopoly legislation is actively fighting the cartel participants, identifying unlawful association.But in some states, such associations are flourishing and even encouraged the Government to standardize materials, industrial restructuring and the restriction of competition between small enterprises.
In order to distribute the profitable market, increase the prices of products, to establish minimum wages, entrepreneurs and create a cartel.This agreement should be signed as many parties to eliminate potential rivals.Inside cartels large companies dictate their terms to smaller and vulnerable, do not allow the parties to the agreement to lower prices for goods.
In market economies such associations exist in a latent form, because antitrust laws do not allow the emergence of such activities.There are import, export, domestic and international agreements.The simplest is the internal cartel.This association of companies within the same industry in the country.International involves the joint activities of firms of various countries involved in the import and export products.Import cartels - is importing foreign goods, and export - the national association of exporting companies.
To avoid falling under the antitrust laws, such monopoly association became known gentlemen's agreement, convention, or the ring corner, but the essence remains the same.Cartels in Russia is practically in every industry, and this has a negative effect on pricing.Experts notice that if there was no agreement between the producers, the prices have fallen to 2-2.5 times.
most frequently observed among the monopoly oil companies in the telecommunications market, including drug manufacturers, food, coal, etc.The government is doing everything possible to eliminate cartels, but close all the loopholes is very difficult and almost impossible.Therefore, the most effective method of combating unfair competition is to encourage entrepreneurs.
Cartel - is a relatively short-lived union, because after a while between participants begin conflicts, the balance is disturbed.Stability depends on the ability of the agreement on or eliminate outsiders, lack of power, undermining the cartel from the inside.
