Economy

What is cartel (economy)? »Its definition and meaning

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In the economic field, a cartel is considered to be the agreement by which various rival companies of the same branch hold a meeting to reach an agreement to establish a cessation of competition, in order to bring similar products to the market but there is cooperation between them to in this way to maintain an overlap before other companies, this type of cartel is generally founded under capitalist concepts.

The posters are more than all a tool for inclusion in the market where micro and macro companies have the opportunity to get a vision of the market, for entrepreneurs to form a Cartel is the opportunity to produce a type of product when the demand for it is quite high, is that in marketing a product is offered but the consumer requests more variety and that is where companies are forced to cooperate. It is important to note that the cartels are not only born between companies with the intention of covering the demands, they are also established where those involved obtain great benefits, such as: tax evasion or substitution of tariffs, by giving way to new brands or companies, these regulate in a certain way the passing of taxes to the main or most recognized brands.

There are cases where the most recognized brands reach an agreement to collaborate directly with other second-hand brands, all with the aim of meeting the demand for the product, promoting second-hand production and development (at low cost).