We support the statement ‘Monopolies have led to the success of many economies in the world, and therefore, they should be maintained by government if they want their economies to continue enjoying economic growth and prosperity’. This is because monopolies are large in size, they benefit from economies of scale and are able to generate a huge amount of profit- larger than other market structures. With this money, they can invest in research & development, improving their existing products and creating new ones. Moreover, monopolies have a great impact on a country’s economy. Two very large monopolies that positively impacted the United States economy is Standard oil and Steel Company.
Threat of new entrants Over the years, P&G has dominated the consumer goods industry in the world. However, in the recent past, there has been a notable increase in the number of investors in the industry. When these new competitors get into the market, they usually come with new technologies and that has allowed P& G to cede some market share. The thereat of substitutes; the presence of a larger pool of substitutes to the products that the company produces is a source of threat to the operations of the company. In this regard, a number of consumers are presented with an array of options from which to choose their goods.
However, Sysco decides that they should add values to their products and improve connection with their suppliers. As the largest company in the industry in North America, Sysco easily implements their strategy as redividing profitability. By adding values to their products, customers don’t just buy food as normal. Instead, customers recognize certain values that they receive from the food they buy. Increasing the value also becomes common in today business because there are many companies in the same industry provides similar products or
and global transportation, thus making it extremely impactful on the world economy. The canal has been extremely important to maritime transportation for the U.S. by providing a shipping route that makes it much easier to move goods from the West Coast to the East Coast. This has allowed the U.S. to move goods within its own country, but has also allowed the East Coat to more easily move goods to their important shipping partners in Western Europe, Eastern Asia, and Australia. The Panama Canal also allows important goods like minerals, grains, food products, and petroleum to be exchanged between the U.S. and other global economies. The Panama Canal overall plays a large part in the world economy, by allowing the exchange of goods from the U.S. to other countries around the world and vice versa.
Even the international companies bring considerable economy growth to developing countries such as technology transfer and job opportunity. Nevertheless, the multinational corporations also bring problems to developing country like harm human right. However, it is believed that multinational companies bring advantages morn than disadvantages. The developing country should increase the economy in the short term because competed economy can enhance competitive strength in the world and ameliorate the life of developing country people such as using additional finance develops capital
So, many people are most likely to invest and start new corporations or enterprises. The fact is that the upper class should pay more and higher there taxes. Making their taxes higher can help many others who need money. Such as poor people, organizations, and others who are struggling with certain things. It wouldn't hurt them to higher the taxes because they just get so much more money than lower and middle class.
In a merger, the two companies agree to combine the resources of the two companies so as to focus its operations on areas profitable to the two companies. Additionally, In a takeover, a company chooses to buy the majority shares of another company so that the company with the larger number of shares eventually controls the business activities of the company and assume maximum responsibility for the company’s production (The Times 100, n.d.). So, in general, inorganic growth enables a company merge or buys another company and continues or modifies the activities of the company. Organic growth is another major way to grow a company. Organic growth simply means that a company increases the turnover of its existing business by having more customers to patronize its products.
It seems to me that the United States was benefiting from the rich corporations during this time. Many challenges came about because all of the other nations wanted to satisfy their own ambition as much as the U.S. wanted to. However, the foreign policy is an interventionist savior of other nations because so many products were being shipped and other countries wanted the products that the United States
The current ratio of the Ajinomoto Berhad is stable. It is because the high current ratio shows that there are many cash in the company. They have extra money to utilize in the other area. Besides, the quick ratio of the Ajinomoto Berhad is higher and it is good for the investor to invest. It means that the company has the ability to cover the current liabilities.
Multinational corporations can be defined as enterprises operating in several countries but are managed from their home country. Generally, any company that acquires a quarter of its revenue from operations outside of its home country is considered to be a multinational corporation. Today the multinational corporations have a radical effect on the economic system all over the world. This is due to the growth of international business of the multinationals, which has tremendous effect on the traditional forms of international trade and capital flows for economies at large. In the world economy they create a powerful force.