Trust is the result of capitalism that forms an oligopoly, which leads to merger and incorporation of companies involved in the same sector of activities to give up their legal independence to form a single organization.
Trust aims to dominate a certain product or service offering.It can also be characterized as a business organization with great pressure on the market.
Truste designates companies or groups that, without losing their autonomy, come together with the aim of dominating the market and suppressing free competition.
Generally, they are large groups or companies that control all stages of production, from the removal of raw materials from nature to the distribution of goods.
The expression was adapted from the English expression trust, which means "trust".
cartel and trust
Like the trust, the cartel is an economic strategy in an attempt to dominate the market.
In the cartel, companies in the same line of business come together, usually in secret, to establish agreements with each other.
Among these agreements is the definition of production volume, equalization of all sales prices, control of raw materials, and so on.
Cartels are harmful to the economy as they prevent consumers from having access to free competition.
See also the meaning of oligopoly.
