What is a cartel?

is a group of people, organizations or companies that cooperate on production, marketing and product control. According to antitrust laws in many regions of the world, cartels are explicitly illegal because they eliminate fair competition on the market. Despite these laws, however, there are still several international cartels and within nations private cartels can secretly control the market for certain commodities. By agreeing that you will not compete, the cartel members benefit each other. Cartles are often successful in raising the price of the commodity they control, far beyond what could be considered as real market value. A classic example of an international cartel is De Beers Diamond Company, which controls the diamond market around the world and causes an artificially inflated price. De Beers has been criticized for its practices and several governments are to be tempted to undermine the strangulation of society on global diamond supplies, without success. OPEC in particular increased the price of oil at the age of 70 and used their ownJ market lever as a political instrument. OPEC Member Nations claim that their cartel protects world oil reserves and minimizes market fluctuations; Critics OPEC are not so sure.

By checking the production of a product or commodity, a cartel basically decides how much it is available on the market. If the Cartel members agree to the sale at the specified price, they can manage the costs of something by making it difficult to obtain, thereby force people to pay the price it sets. When the cartel controls most of the available commodity, this limitation of the righteous competition on the market can be harmful to consumers because they find themselves that too much for needs.

cartels are also present in drug stores and some nations have tried to stop the flow of drugs by attacking the cartels that control them. However, whether the cartel controls legal or illegal substances, it may be difficult to trace. Because the cartels are theoretically illegal, most of the member orgAnisation is smart enough to close the shops behind the closed door and leave no paper track. Successful cartel prosecution may require years of investigation and hard work, even with severe anti -mound laws.