Practicing a monopoly is illegal, several countries have turned against this type of procedure, although without achieving large results, as large business corporations find ways to "get around" the laws of the countries in which they are located. installed.
One of the principles of capitalism is free competition, however, a high percentage of large companies practice some type of monopoly in order to achieve greater profit margins.
Monopoly can be carried out in different ways, this variation triggers the emergence of different names. Today there is a more current form of monopoly, called oligopoly. The distinction between monopoly and oligopoly is basically in the number of companies involved, the first is practiced by a single company and the second by several. Thus, the main monopolistic practices are:
Trust: is a form of oligopoly developed from the joining of a group of companies that cancel each other out as to their respective autonomy to compose a single corporation so that it can strengthen itself, in addition to obtaining hegemony in a given market, controlling the availability of goods and prices. There are two types of trusts, the vertical (acts in several branches) and horizontal (acts in the same branch).
Cartel: corresponds to an illegal practice that violates the consumer's right, occurs from the meeting of autonomous and independent companies from the same sector of activity that they discuss and then establish agreements to fix prices practiced so that there is no variation thereof, in this way it also exerts dominance in the offer of a certain product.
Holding: English word translated into Portuguese means holding company. This practice is considered the most evolved form of capital accumulation. Holding is a kind of company created with the purpose of directing other productive activity companies. Holding corresponds to the formation of a company, in which majority shares of a group of companies are acquired. The fact of owning the majority of shares conditions the obtaining of greater power, so he starts to manage all his subordinates. The intervention presented aims to expand the composition of the capital of partner companies. There are two ways of applying the holding, pure (participates only in the capital of companies) and mixed (participates financially and also productively).
By Eduardo de Freitas
Graduated in Geography
Brazil School Team
General geography - geography - Brazil School
Source: Brazil School - https://brasilescola.uol.com.br/geografia/as-varias-formas-monopolio.htm