The capitalist system is currently going through its peak period, given its establishment all over the world, consolidated by the advance of the Globalization process. Its current phase, called the Financial Capitalism and operated by the informational medium, it acquires, among several other characteristics, the scope of financial speculation and, in a certain way, of monopolism.
Although capitalism considers among its most basic premises the need for freedom competition, what is observed is the search, on the part of most companies, to avoid or mitigate its effects. For this, several strategies are developed, with emphasis on the formation of trusts, cartels and holdings.
You trusts they correspond to the merger or union between two companies in the same industry or in different areas of the economy, constituting a single company or a group of larger members. This form of monopoly is widely used by large companies that are threatened by growth of small competitors in a fast growing phase, but it can also involve large companies bigger.
In addition to seeking to reduce competition, trusts can be carried out when a company decides to expand its market to other branches of the economy. Example: a company in the beverage industry acquires or merges with another company in the food industry to increase its area of operation.
Although it is not considered an illegal activity, there are several laws and statutes designed to curb the expansion of trusts and prevent a total loss of control in the global market. In 1890, in the United States, the Sherman Antitrust Law – a law to limit trusts and guarantee free competition – and even today there may be restrictions – not always materialized – for the merger between two large companies that control part of the market consumer.
You cartels, in turn, are secret or unofficially disclosed unions between competing companies to adjust the price of their goods in order to maintain the interest and avoid loss of profits due to the dispute of Marketplace. It is a practice considered illegal in the legislative context of practically all existing countries, although it is widely practiced. There is even a cartel involving countries in the oil sector, the OPEC (Organization of Petroleum Exporting Countries). Eventually, its members meet and establish price adjustments for this resource based on fluctuations in the financial system.
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There are also many trusts or companies belonging to the same group of investors that carry out price cartels of its goods, which is not always properly diagnosed by public control and inspection entities. This configuration is considered a problem, as it raises the price of products and reduces the consumer's purchasing power, which reduces the movement of the economy and the generation of wealth.
At holdings they are, in this context, the set of different companies dominated by a central organization, responsible for managing most or all of their respective shares. In many cases, the holdings they form conglomerates made up of numerous companies from the most diverse segments and even competitors.
In the current phase of capitalism and globalization, one of the most striking aspects is the expansion of holdings around the world. Recently, a survey carried out in the United States and published by the website Michighlighted the control exercised by ten large international conglomerates that control almost everything we consume. The main product of this research was the disclosure of a graphic in the form of an image, called “Illusion of Choice”, which can be accessed clicking here.
Although some products on the chart are not directly part of our reality, since the image is in the parameters of the United States, and not Brazil, we can still recognize several of the brands that are part of our daily life and how many of them belong to a same holding. Besides these, there are others holdings smaller companies that operate in Brazil or in more regional markets and that exercise relatively strong market power, such as Ambev, Positivo, ItaúSA and others.
By Me. Rodolfo Alves Pena
Would you like to reference this text in a school or academic work? Look:
PENA, Rodolfo F. Alves. "Trusts, Cartels and Holdings"; Brazil School. Available in: https://brasilescola.uol.com.br/geografia/trustes-carteis-holdings.htm. Accessed on June 28, 2021.
