Trust (economy)
See also: Trust
A trust is large a Entreprise which has strong positions, even dominant, on several close markets, within a Industrial sector. The Right of the competition fight against the trusts which could be made guilty of Dominant position abuse.
Definition
The trusts played an important economic part in the capitalist companies of the 19th century. A trust is large a Entreprise which repurchased others plus small companies in order to limit competition and to gain width within the market. It is a question of a situation different from that from the Cartel, where several small companies join in order to gain capacity of market, so as to generate more profit.
there exist two types of concentration leading to a trust:
- the concentration known as horizontal (repurchase of companies of the same sector)
- the vertical Integration which consists with the repurchase of all the die of production of the raw material to the end product.
In a general way, one especially attends the phenomenon of concentration during time known as of depression (see Cycle Kondratieff), where companies, weakened or in bankruptcy, are more easily made repurchase.
See too
- History of capitalism
- Konzern: the term in German
- Zaibatsu: the term in Japanese; these trusts took sometimes the name of their town of establishment in Japan.
| Random links: | Beauvilliers (Yonne) | Lake Skadar | Carema (wine) | Neo-expressionnism | Fritz Fischer (historian) | Université_de_la_Virginie_Occidentale_à_Parkersburg |