CARTEL Meaning and
Definition
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A cartel is a formal or informal organization of businesses or producers that collaboratively work together in order to control or regulate the production, pricing, and distribution of a particular product or service within a specific industry or market. Typically, a cartel is formed by companies operating within the same sector who unite to manipulate the market conditions for their own benefit.
The primary objective of a cartel is to minimize competition among its members, resulting in increased profits for all parties involved. Cartels achieve this through various means, such as fixing prices at artificially high levels, limiting production outputs, dividing market territories among members, and colluding on tenders or contracts. By establishing these practices, cartels effectively restrict free market forces, ensuring their dominance and preventing new entrants from challenging their positions.
Cartels often rely on secretive agreements among members, aiming to maintain their monopolistic or oligopolistic control over the market. These agreements may entail regular meetings to discuss pricing strategies, production quotas, or market shares. Cartels are generally illegal in most jurisdictions, as they undermine fair competition and lead to higher prices and reduced consumer choices. Governments and regulatory bodies actively enforce antitrust laws to identify and dismantle cartels, impose fines, and protect market integrity.
Overall, a cartel can be regarded as an anti-competitive group created by businesses or producers seeking to secure their own economic interests by unlawfully manipulating the market dynamics and restricting fair competition.
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A written agreement between states at war for an exchange of prisoners.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for CARTEL *
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Other Common Misspellings for CARTEL
Etymology of CARTEL
The word "cartel" has its roots in the Italian language, specifically from the Italian word "cartello". The term "cartel" originally referred to a placard or sign, commonly used during the Italian Renaissance. It was placed outside a building or shop to advertise the goods or services provided within. By the 19th century, the term began to be used figuratively to describe an association or coalition, often in a business context. This usage eventually extended to refer to an organization of businesses or entities that collude or work together to control prices, limit competition, or monopolize a specific industry. The English word "cartel" was derived from the French language, where it gained popularity as a result of its use during the 19th-century European business practice of forming economic alliances.
Similar spelling words for CARTEL
- cattle,
- carduelis,
- cardwell,
- cart,
- cardello,
- Cartelli,
- Carted,
- cartload,
- cardella,
- cater,
- cartlidge,
- curdle,
- cartledge,
- cardiel,
- cartilage,
- castle,
- cartwheel.
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