CARTELISATION Meaning and
Definition
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Cartelisation refers to the formation or establishment of a cartel. A cartel is a group of competing firms or companies in the same industry that come together and collude to control the market, fix prices, and reduce competition among themselves. Cartelisation involves the coordination and cooperation of these firms to achieve mutual benefits, often at the expense of the consumers.
In a cartelised market, the member firms coordinate their actions with the primary goal of maximizing industry profits. They may agree on various aspects such as market share allocation, pricing strategies, production levels, and market entry restrictions. By effectively reducing competition, cartelisation allows the member firms to exert greater control over the market and manipulate prices to their advantage.
Cartelisation typically results in higher prices for consumers, limited choices, reduced quality, and decreased innovation. It can hinder economic growth and efficiency by discouraging new entrants into the market and preventing existing firms from competing on fair terms. Cartels are generally considered illegal in many countries due to their negative impact on consumer welfare and free market competition.
Efforts to combat cartelisation often involve strict antitrust regulations and enforcement to prevent collusion and promote fair competition. Authorities may impose heavy fines and penalties on firms found guilty of engaging in cartel activities, aiming to discourage such behavior and protect the interests of consumers.
Common Misspellings for CARTELISATION
- xartelisation
- vartelisation
- fartelisation
- dartelisation
- czrtelisation
- csrtelisation
- cwrtelisation
- cqrtelisation
- caetelisation
- cadtelisation
- caftelisation
- cattelisation
- ca5telisation
- ca4telisation
- carrelisation
- carfelisation
- cargelisation
- caryelisation
- car6elisation
- car5elisation
Etymology of CARTELISATION
The word "cartelisation" is derived from the noun "cartel" and the suffix "-isation" or "-ization".
The noun "cartel" originates from the Italian word "cartello", which means "placard" or "poster". In the Middle Ages, cartels were used to display public notices or official announcements. Over time, the meaning of "cartel" evolved to refer to a written agreement or contract among businesses or individuals.
The suffix "-isation" or "-ization" is commonly used in English to form nouns from verbs or adjectives. It denotes the act, process, or result of making something conform to or be associated with the base word.
Therefore, "cartelisation" refers to the act or process of forming or operating as a cartel, which involves businesses colluding to control prices, reduce competition, and gain monopolistic advantages in a particular industry or market.
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