Why Having A Monopoly | The Science

 

 

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Why having a monopoly

The term "monopoly" in the modern economic theory has a negative connotation, because it does not allow competition in a particular industry. However, the monopoly is an integral part of any capitalist development of the state, has a significant impact on the life of the country.

Why having a monopoly

The word "monopoly" comes from the Greek - "a sell" and has two meanings. Firstly, it is a major business association, which operates in the market in conditions of almost complete absence of competitors. Secondly, it is itself the market situation in the industry, where such acts organizatsiya.Istoriya emergence of monopolies are inextricably linked with the development of these important economic processes: the growth of share ownership and merger in large corporations for the purpose of centralization of capital, the development of the banking system, the emergence of new forms of capitalist obedineniy.Aktsionernye society and companies organized by the centralization of cash as a result of the sale of shares and other securities of the company. In the developed capitalist countries, these companies have grown to the size of corporations, is an association of persons (shareholders), carrying cash contributions to total capital. This capital was used to a certain proportion of shareholders for doing business. Obtaining income and incurring losses is also exposed to interest rate transfer for each participant. Activities shareholders not necessarily conducted in a single sector of the economy, such corporations are called holding companies engaged in trade and proizvodstvo.Vozniknovenie corporations has led to an increase in the volume of financial transactions passing through the banking sector, which in turn led to the development of the banking system. In this system, as in any economic sector, the laws of monetary centralization of capital operated, small uncompetitive banks were absorbed by larger or ruined. In the end, we came to the fore a few, but major financial institutions and banking associations (cartels and syndicates), are concentrated in the hands of huge amounts of money and the monopoly rights on the management of all financial transactions. Moreover, the largest banks secretly united into a larger community, and competition between them turned into a fierce battle. Thus, the lion's share of the cash turnover of all economic entities subordinate to more stringent kontrolyu.Novye forms of capitalist associations in the epoch of monopoly - cartels and syndicates; more complex - trusts and concerns. Cartel - an association of several companies operating in the same sphere of production, each of which retains the right to property as the means of production, and the manufactured product and its implementation, agreeing on joint participation in the general kapitale.Sindikat - the same, that the cartel, for except that the company retains ownership of the means of production, but does not have the capacity to dispose of produced goods, which is implemented by the general office sbyta.Trest can be combined as a single firm, and several industries, with the participants did not have any property rights at the expense of production or on the products and profits are based on the proportion of equity uchastiya.Mnogootraslevoy concern - a huge community of companies (from several tens to hundreds of companies) in various sectors. The main concern in the financial control carried out major (management) company that controls the operation of all participating organizatsiy.Nesmotrya the apparent monopoly power in the controlled sector, can not be regarded as a monopoly of "clean". In this definition, there is always a certain proportion of the conventions, as in the real economy it is difficult to find a sector in which would be dominated by one single company. Nevertheless, control of monopolies is extremely high in the advanced capitalist countries, although the government always has the monopoly right to certain production sectors, such as tobacco or alcohol.