CARTELLISATION Meaning and
Definition
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Cartellisation refers to the formation or operation of a cartel, which is an organization or group of businesses engaged in collusion and illegal practices to maintain control over a particular industry or market. It involves the coordination among several companies in the same industry to set prices, control production, and limit competition.
In a cartellisation scenario, different firms or companies unite to form a cartel to manipulate prices, reduce output, and divide markets, thereby exerting control and influence over the industry. This collusion is typically done through secret agreements and arrangements among the cartel members, often resulting in anti-competitive effects and higher prices for consumers.
The goal of cartellisation is to maximize profits for the participating companies by coordinating their actions and eliminating the usual competitive pressures of supply and demand. Members of a cartel may engage in price-fixing, bid-rigging, market allocation, or other illegal activities aimed at stifling competition and maintaining their dominant position in the market.
Cartellisation is considered illegal in most jurisdictions as it restricts free trade and fair competition, leading to negative consequences for the economy and consumers. Regulatory bodies, such as competition authorities, aim to detect and prevent such practices by imposing fines, sanctions, or other legal measures on cartel members. Efforts to combat cartellisation include promoting transparency, encouraging whistleblowing, and enforcing strong antitrust laws to deter collusive behavior and protect market efficiency.
Common Misspellings for CARTELLISATION
- xartellisation
- vartellisation
- fartellisation
- dartellisation
- czrtellisation
- csrtellisation
- cwrtellisation
- cqrtellisation
- caetellisation
- cadtellisation
- caftellisation
- cattellisation
- ca5tellisation
- ca4tellisation
- carrellisation
- carfellisation
- cargellisation
- caryellisation
- car6ellisation
- car5ellisation
Etymology of CARTELLISATION
The term "cartellisation" is derived from the word "cartel", which has its origins in the French language. The word "cartel" was first used in the 19th century with the meaning of a written agreement or contract. It was primarily used to refer to a formal agreement between political parties during the French Revolution. Over time, the term evolved to include economic agreements and specifically came to represent agreements between companies operating in the same industry or sector. Consequently, "cartellisation" emerged as the noun form of "cartel" and refers to the process or act of forming or participating in a cartel.
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