A cartel is a group of producers of an item or service that has formed a legal agreement to manage supply in order to control or manipulate prices. To put it another way, a cartel is a group of ordinarily independent enterprises or countries that act as if they were a single manufacturer, allowing them to set pricing for goods and services without competition.
Cartels are competitors in the same business who strive to decrease competition by agreeing on a pricing control strategy.
Cartels use tactics like supply reduction, price fixing, collusive bidding, and market carving. for example You’re the proprietor of a petroleum field. You most likely want to generate as much money as possible. Lower gas prices result in lower profits, whereas higher prices result in larger profits. You establish a contract with a nearby oil field to lower the amount of oil each of you produces each day in order to enhance earnings. A cartel is a term used to describe a group of people who work together.
primarily, there are two types of cartels that exist
- Cartels formed between member corporations are known as private cartels. The participants of a private cartel are only concerned in enhancing their personal benefits. Consider the scenario where you wanted to increase your revenues and struck a contract with a nearby oil field – this would be a private cartel.
- Governments frequently foster public cartels, which are not subject to antitrust laws. These cartels are frequently formed in order to aid product or service manufacturers as well as the worldwide population. Instead of forming individual cartels, the biggest countries have joined OPEC, the Organization of Petroleum Exporting Countries.
Antitrust laws frequently consider private cartels to be in breach. Antitrust laws are government restrictions designed to improve the fairness of trading and production of products and services. When private cartels form, they frequently break these legal requirements. In India competition act 2002 can be viewed as the anti trust law that has been established to promote a healthy competition in the market and discourage unfair trade practices. The competition commission of India headquartered in New Delhi is responsible for overseeing and proper imposement of the competition act, 2002
World’s Biggest Cartel
OPEC (Organization of Petroleum Exporting Countries) is the largest cartel in the world. It is a group of 13 oil-producing countries whose aim is to coordinate and harmonies their petroleum policies in order to keep oil markets stable. The actions of OPEC are legitimate since it is protected by US international trade regulations. Concerns about retribution and potential negative impacts on US industries led to the US Congress’ attempt to label OPEC as an unlawful cartel being blocked in the mid-2000s. OPEC members have argued that it is not a cartel at all, but rather an international organization with a legal, permanent, and vital role, despite the fact that most people assume it to be one.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
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We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.
We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge