The document discusses several types of cartels, including private cartels, public cartels, and drug cartels. It provides details on the history and operations of drug cartels, noting they were first established in Mexico in the 1980s and now affect countries worldwide. The economic impacts of drug cartels are also summarized, such as providing employment, generating cash flows, and spurring investments in real estate, cattle, and luxury goods. Several other cartels are briefly outlined, including the cement cartel in India, the De Beers diamond cartel, and the lysine cartel of the 1990s that increased prices by 70%.
Students should be able to:
Carry out diagrammatic analysis of the market structure in both the short and long run
Understand the importance of advertising and differentiation for the model of monopolistic competition and be able to contrast this with other market structures.
Students should be able to explain and evaluate the efficiency of monopolistic competition
People looking out for International Trade theories, This Porters Diamond will be a useful presentation for you!... If requested on mail i will send you any particular Topic in International Business.
All the Best!
i'm not the exact author for this PPT ,but i can clime i'm added something more information on this. i hope this PPT will help you to acquire knowledge about MNC and its role in India in a simplest way.
International trade is the exchange of capital, goods, and services across international borders or territories.
international trade has existed throughout history (for example Uttarapatha, Silk Road, Amber Road, salt roads), its economic, social, and political importance has been on the rise in recent centuries.
To understand the pattern in international trade, Different trade theories are postulated. Some famous trade theories are:
Mercantilism
Absolute Advantage Theory
Comparative Advantage Theory
Hecksher-Ohlin Factor endowment theory
Product Life Cycle Theory
New Trade Theory
Porter’s Diamond Theory for competitive advantage
Restrictions on imports – tariff barriers, quotas or non-tariff barriers.
Accumulation of foreign currency reserves and gold and silver reserves. (known also as bullionism)
Granting of state monopolies to particular firms especially those associated with trade and shipping.
Subsidies of export industries to give competitive advantage in global markets.
Government investment in research and development to maximize efficiency and capacity of domestic industry.
Allowing copyright / intellectual theft from foreign companies.
Limiting wages and consumption of the working classes to enable greater profits to stay with the merchant class.
Control of colonies, e.g. making colonies buy from Empire country and taking control of colonies wealth.
England Navigation Act of 1651 prohibited foreign vessels engaging in coastal trade.
All colonial exports to Europe had to pass through English first and be re-exported to Europe.
Under British Empire, India restricted in buying from domestic industries and were forced to import salt from the UK. Protests against this salt tax, led to ‘Salt tax’ revolt led by Gandhi.
In seventeenth Century France, the state promoted a controlled economy, with strict regulations about the economy and labour markets
In the modern world, mercantilism is sometimes associated with policies, such as.
Undervaluation of currency e.g. government buying foreign currency assets to keep the exchange rate undervalued and make exports more competitive.
Government subsidy of industry for unfair advantage. China has been accused of offering too much subsidised investment for industry, leading to over supply of industries such as steel – meaning other countries struggle to compete.
Surge of protectionist sentiment, e.g. tariffs on imports.
Copyright theft
Students should be able to:
Carry out diagrammatic analysis of the market structure in both the short and long run
Understand the importance of advertising and differentiation for the model of monopolistic competition and be able to contrast this with other market structures.
Students should be able to explain and evaluate the efficiency of monopolistic competition
People looking out for International Trade theories, This Porters Diamond will be a useful presentation for you!... If requested on mail i will send you any particular Topic in International Business.
All the Best!
i'm not the exact author for this PPT ,but i can clime i'm added something more information on this. i hope this PPT will help you to acquire knowledge about MNC and its role in India in a simplest way.
International trade is the exchange of capital, goods, and services across international borders or territories.
international trade has existed throughout history (for example Uttarapatha, Silk Road, Amber Road, salt roads), its economic, social, and political importance has been on the rise in recent centuries.
To understand the pattern in international trade, Different trade theories are postulated. Some famous trade theories are:
Mercantilism
Absolute Advantage Theory
Comparative Advantage Theory
Hecksher-Ohlin Factor endowment theory
Product Life Cycle Theory
New Trade Theory
Porter’s Diamond Theory for competitive advantage
Restrictions on imports – tariff barriers, quotas or non-tariff barriers.
Accumulation of foreign currency reserves and gold and silver reserves. (known also as bullionism)
Granting of state monopolies to particular firms especially those associated with trade and shipping.
Subsidies of export industries to give competitive advantage in global markets.
Government investment in research and development to maximize efficiency and capacity of domestic industry.
Allowing copyright / intellectual theft from foreign companies.
Limiting wages and consumption of the working classes to enable greater profits to stay with the merchant class.
Control of colonies, e.g. making colonies buy from Empire country and taking control of colonies wealth.
England Navigation Act of 1651 prohibited foreign vessels engaging in coastal trade.
All colonial exports to Europe had to pass through English first and be re-exported to Europe.
Under British Empire, India restricted in buying from domestic industries and were forced to import salt from the UK. Protests against this salt tax, led to ‘Salt tax’ revolt led by Gandhi.
In seventeenth Century France, the state promoted a controlled economy, with strict regulations about the economy and labour markets
In the modern world, mercantilism is sometimes associated with policies, such as.
Undervaluation of currency e.g. government buying foreign currency assets to keep the exchange rate undervalued and make exports more competitive.
Government subsidy of industry for unfair advantage. China has been accused of offering too much subsidised investment for industry, leading to over supply of industries such as steel – meaning other countries struggle to compete.
Surge of protectionist sentiment, e.g. tariffs on imports.
Copyright theft
A detailed presentation on the provisions of the Competition Act, 2002 ,in so far as it relates to the anti-competitive agreements and cartels during a seminar on competition policy and law in Kerala. This was a part of advocacy function of the Competition Commission of India (CCI).
A exposition on the provisions relating to the anti-competitive agreements and cartels during a seminar on competition law and policy in Kolkatta in 2009 as a part of the advocacy functions of the Competition Commission of India(CCI).
Opec - Organization of Petroleum Exporting Countries. Vikas C
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, was established in Baghdad.
OPEC comprised 12 members: Algeria, Angola, Ecuador, Iran, Iraq Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates Venezuela.
Petrodollar is a United State dollar earned by the country through the sale of petroleum.
Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock into synthetic oil & gas.
OPEC Share of World Crude Oil Reserves - According to current estimates, more than 81% of the world's proven oil reserves are located in OPEC Member Countries, with the bulk of OPEC oil reserves in the Middle East, amounting to 66% of the OPEC total.
80% of the world's oil reserves are located in just 13 countries which make up OPEC (the Organization of the Petroleum Exporting Countries). Algeria, Venezuela, Saudi Arabia, Iran, Iraq, Kuwait, Angola, Indonesia, Ecuador, Libya, Nigeria, Qatar, and the United Arab Emirates.
SWISS TRADING COMPANIES, AFRICAN OIL AND THE RISKS OF OPACITY GE 94
Swiss commodity trading companies buy a
considerable share of the oil sold by African
governments. The payments made by Swiss
companies generate a significant portion of public
revenues in some of the world’s poorest countries,
and are subject to governance risks as they take place
in environments of weak institutions and widespread
corruption. To date, however, these important
transactions have escaped oversight due to opaque
corporate practices and weak regulation.
Oil majors and traders role of opec,ocimf & intertankoKapilLamba6
Information and analysis of oil majors traders importance of them oil as commodity trading its importance and various agencies relate with smooth world wide operation of oil and petroleum products and regulation
2. Introduction
What is cartel…?
A formal organization of producers and manufacturers that agree to fix prices, marketing, and
production.
Usually occur in an oligopolistic industry.
Products being traded are usually commodities.
Types of Cartel:
Private cartels
Public cartels
Outcomes of Cartel
Price fixing
Market shares
Allocation of territories
5. Drug Cartel
What is a Drug Cartel
A drug cartel is a criminal organization developed with the primary purpose of promoting and
controlling drug trafficking operations and prices .
History of Drug Cartel
It started for the very first time in Mexico.
Mexican Federal Police agent Miguel Ángel Gallardo ("The Godfather"), who founded
the Guadalajara Cartel in 1980 and controlled all illegal drug trade in Mexico.
Countries affected by drug cartel
Japan
Russia
Italy
Israel
Columbia
6. Drug Cartel
Market Impacts of Drug Cartel
Pretty Higher Prices Of Drugs and Marijuana.
Control over the availability of Drugs and Marijuana in the market.
Segmentation of market.
Economic Impacts of Drug Cartel
Employment
Agricultural employment
Private security and
vigilance
Man Power for packing
and Logistics
Chemists
Lawyers
Managers of laboratories
Merchants
Transporters
Cash flows
1 kg of sugar or any
vegetable costs not more
than 80 rupee but
marijuana more than
15000 rupee .
Even the most expensive
drug in the world cost
2Lkhs for 6 months but
drugs cost more than
30Lkhs for just half kg.
Investments
Real estate (about 45%),
Cattle (about 20%)
Other forms of legal
commerce (about 15%)
Luxurious Cars and
Housing
8. Basic Facts
OPEC was formed in Baghdad in 1960 to coordinate and unify the policies of
petroleum exporting nations
The main objective of OPEC is to ensure the “stabilization of oil prices in international
markets” and securing a steady income to oil producing nations
In order to achieve these objectives, the OPEC nations meet at least bi-annually to
decide whether to raise or lower their collective oil production in order to maintain
“stable” prices
The main factors in their formulating of petroleum policy are the forecasts for
economic growth rates and petroleum demand and supply
The 11 OPEC member countries produce about 40% of the world’s crude oil, and
therefore have a strong influence on the oil market
9.
10. Country Total Oil Imports
Canada 1.79
Saudi Arabia 1.66
Venezuela 1.54
Mexico 1.42
Nigeria .86
Iraq .78
Norway .33
Angola .32
U.K. .31
Total Imports 11.62
(MB/D)
11. Summary
While OPEC still has considerable influence in
determining the price per barrel of petroleum by
restricting output, their success has greatly diminished
since the 1970’s
Despite the overall increase in worldwide demand for
petroleum, OPEC nations have not received the brunt of
this increased demand. Rather, it has gone to Non-
OPEC nations
As a result, over the past few years both production and
revenues in the OPEC nations have declined significantly
13. CCI- The Cement Cartel of India:
(Builders Association of India v. Cement Manufacturers Association)
Complaint filed by the Builders’ Association of India on Cement Manufacturers
Association.
The Competition Commission of India indulge price cartel on 11 cement industries
The competition commission found Amiss:
1. Creating artificial scarcity:
Colluded to lower capacity utilisation every year from 2008 to
2011, even though the installed capacity is raised.
14. 2. Price Fixing: By creating this artificial scarcity they were going to raise the
prices by forming these cartels.
3
The 11 companies were as follows:
Penalised with Rs.6,698-crore by the Competition Commission of
India for the price cartelisation.
16. RISE OF DE BEERS
1869 - Diamond Rush in South Africa.
1888 - De Beers Mine was discovered by Cecil Rhodes. De Beers Consolidated Mines
Limited was established by combining all nearby diamond mining.
1902 - Cullinan Mine was discovered; its owner refused to join De Beers cartel. In the
same year, De Beers absorbed Cullinan Mine.
1927 - Ernest Oppenheimer became the chairman.
1935 - Diamond Trading Co.
1947 - Advertisement for De Beers with a slogan “Diamond is forever” is recognized a lot.
1957 - Harry Oppenheimer succeeds his father as Chairman.
1960 - 2000 - Mines were discovered in Russia, Australia and Canada.
1980 - Captured 90% of world’s diamond production.
17. FALL OF DE BEERS
1990’s - Soviet Union collapse. Next is Australia and Canada. Market share fell
down to 80%
2001 - De Beers officially ended its diamond monopoly.
2011 – Market share fell down to 40%
19. Lysine Cartel
• TOOK PLACE BY 1990’S
• ARCHER DANIELS MIDLAND (ADM) AND ASIAN COMPANIES INVOLVED.
• PRICE INCREASED ABOUT 70% IN THE MARKET WITH IN A SHORT SPAN OF 3
MONTHS.
• THE CARTEL WAS PROVED BY THE YEAR 1996.
• ADM WAS FINED HEAVILY WITH $70 MILLION AND ASIAN COMPANIES WITH
$21 MILLION.
21. Cartel In Aviation
Rival private airlines Jet Airways and Kingfisher
Airlines, with a collective market share of over 58 per
cent, announced a strategic alliance to help them
reduce cost and enhance efficiency. (2008)
The two have also agreed to cross-utilise crew on
similar aircraft types and use common training
facilities. Passengers can also use frequent flyer
programmes by flying in either of the airlines.
"Such alliances are taking place all over the globe
such as the one with United and British Airways. and
this is the first such alliance in India.“
23. Aviation Cartel In Europe:
The European Commission has fined 11 air cargo carriers a total of €799.445.000 for
operating a worldwide cartel which affected cargo services within the European
Economic area (EEA).
11 carriers include Air Canada, Air France-KLM, British Airways, Cathay Pacific, Cargolux,
Japan Airlines, LAN Chile, Martinair, SAS, Singapore Airlines and Qantas.
The cartel members coordinated various elements of price for a period of over six years,
from December 1999 to 14 February 2006.
The case law of the Court and Council Regulation 1/2003 both confirm that in cases
before national courts, a Commission decision is binding proof that the behavior took
place and was illegal.
In setting the level of the fines, the Commission took into account the sales of the
companies involved in the market concerned, the very serious nature of the infringement,
the EEA-wide scope of the cartel and its duration.
24. Conclusion
Cartel is directly or indirectly present in each and every economy.
Although cartels ultimately leads to a monopoly in particular sector or
industry, but there are still some laws and organizations to curb these
kind of unethical organizations which are controlling market conditions.
In India there is an organization CCI(Competition commission of India)
which enact the Anti Trust Law of Indian Constitution. Recently CCI has
objected the collaboration mergence of SUN Pharmaceutical and
RANBAXY for their common products because when they get merged,
there is a category of certain products which will come as a single
product and according to CCI this may raise into monopoly or a
CARTEL.