Exercises on concentration of industrial capital

The lack of commercial competition between different companies in a given branch of the economy characterizes what we call:

1. Oligopoly.
2. Trust.
3. Monopoly.
4. Cartel.

There are several denominations for the mergers of companies, such as monopolies and oligopolies. There are still other modalities of capital concentration. Among them, it is possible to highlight the cartel, which is defined:

1. for the administrative autonomy of the companies, but that divide the market between them, mainly through the control of prices.
2. through the purchase of shares by financial institutions, which now control a series of companies from different economic sectors.
3. the control exercised by a group of companies over the production and sale of certain goods or industries.
4. for the practice of buying smaller companies by a larger one, later negotiating the division of the market with what remains of the competitors.
5. the suppression of commercial competition, making a single company control the production and sale of goods and services in a given economic sector.

The concentration of capital is one of the most striking features of capitalism from the 19th century onwards. On this subject, associate the types of capital concentration, shown in the left column, with their definition, which is in the right column, below.

The alternative that expresses correctly the association between the items is:

1. I-b, II–d, III–b, IV-a, V-c.
2. I – d, II-c, III-b, IV- e, V- a.
3. I-b, II-c, III-e, IV-a, V-d.
4. I-c, II-b, III-d, IV-e, V-a.
5. I-e, II-d, III-b, IV-a, V-c.

(PUC-PR) Associate the columns:

1 - Cartel
2 - Trust
3 - Monopoly
4 - Oligopoly
5 - Holding

( ) Market dominance by a single company.
( ) Market dominance by a few companies.
( ) Merger of several companies to dominate the market.
( ) Organization that controls several companies through majority control of the shares.
( ) Agreement or association of several independent companies to control the market.

Check the correct sequence:
a) 2 - 1 - 3 - 4 - 5
b) 4 - 2 - 5 - 1 - 3
c) 3 - 4 - 2 - 5 - 1
d) 5 - 4 - 2 - 3 - 1
e) 1 - 2 - 4 - 3 - 5

(UERJ-RJ) Brasília - The Administrative Council for Economic Defense (CADE) of the Ministry of Justice yesterday condemned the companies Roche, Basf and Aventis. According to Cade, these companies would have restricted the supply and raised the prices in Brazil of vitamins A, B2, B5, C and E, in the second half of the 90s. They would also have prevented the entry of Chinese vitamins, at cheaper prices, in Brazil.

The companies had already been convicted of similar practices in Europe and the US.

Juliano Basile
Adapted from Valor Econômico , 04/12/2007

Since the end of the 19th century, the formation of large companies capable of controlling most or even all of the market for one or more products has become a striking feature of the capitalist mode of production.

The news above expresses the following practice present in this century-old reality, associated with the following characteristic of the current economic moment:

a) holding - merger of companies in the same sector.

b) cartel - market control on a planetary scale.

c) oligopoly - worldwide standardization of competition laws.

d) dumping - protectionism for products from emerging countries.

Letter C . A monopoly is constituted when the same company exclusively dominates a productive or commercial branch, eliminating other companies from the competition.

Letter A . The cartel does not totally eliminate competition, there being an agreement between several autonomous companies in the exploration of an economic branch, maintaining a clear administrative separation.

Letter B .

Letter C .

Letter B. These companies ended up forming a cartel by agreeing prices and access to markets by companies that were not part of the agreements.