The syndicate is ... The meaning of the word "syndicate"
The syndicate is an association of entrepreneurs,centrally, for all members, purchase raw materials and sell products. All the companies-participants of the syndicate remain independent in production issues, but at the same time they have commercial dependence.
The meaning of the word "syndicate"
The term "syndicate" has many interpretations. Previously, syndicates meant any alliances that created the unity of the participants' material interests and did not belong to the number of ordinary societies, civil or industrial. In Russia, syndicates spread in the late XIX - early XX centuries, but they gained the greatest popularity in France, where there were both business and labor unions.
If we talk about other countries, then there is a syndicate -this is one of the types of business unions, in particular those that are aimed at achieving a profit level profitable for all participants, by means of a joint standardization of sales of their products and the purchase of the raw materials required for production. In this sense, the term "syndicate" is an international concept.
The causes of the formation of monopolies, trusts, cartels and syndicates
Monopoly as a way to deal with the crisis
Without credit, machine-building plants did not haveopportunities to buy ore, metal and so on. The products were stored in warehouses, factories stopped, because they could not sell the product and buy fuel and raw materials for the continuation of production. Trade relations between enterprises without credit ceased. That's why the monopolies began to form. The industry of each branch at the congresses began to discuss the issues of combating the difficult economic situation in the world.
And as one of the ways out of the crisis arosethe decision to apply the pooling of products and the formation of common trade organizations, that is, syndicates. This made it possible to regulate prices and control the market. Monopolies in Russia existed in the form of syndicates. The syndicate is the lowest form of monopoly, since in this case it is not the production that is united, but only the sale of the output. Moreover, it is easier to organize it than a trust. Industrialists had enough to assemble and agree. At the same time, they remained owners of their enterprises inside the syndicate, and the trust arises during a long competition, when one of the companies ruins its rivals.
What is the difference between syndicates from other business associations
To understand the difference between syndicates and othersassociations of entrepreneurs, should analyze the objectives of their education and the main activities. Trusts and cartels were created, as a rule, by those entrepreneurs who were engaged directly in the production of goods. The activity of such associations was aimed at regulating the volume of production, marketing products and reducing production costs. The main purpose of their actions was to prevent overproduction of the profitability of joint ventures.
Entrepreneurship syndicates are in the first placethe turn of association of organizations working in the same sectors. These are the unions of sellers of one group of goods. In many cases, such syndicates united large competing enterprises in order to achieve a high level of profitability of their business. The main tool that they used was contractual price regulation. Syndicates in Russia, and in other countries too, sought to monopolize the relevant industries and markets more than trusts and cartels.
Types of syndicates in Russia
In terms of territoriality, syndicates inRussia was divided into local and national. The first monopolies in Russia appeared in the early 80s of the 19th century. But the organizational structure of associations at that time was far from perfect. Cartels and syndicates, in general, were managed by congresses of manufacturers and breeders, on which were concluded multilateral agreements on the formation of associations.
The first form of monopoly
The Cartel Agreement was the first establishedand independently functioning monopolistic form. The cartel is a contract between legally and commercially independent organizations that regulate pricing policies and divide the market. In this case, quite large organizations enter into a legal agreement with similar enterprises.
In addition, there is such a thing as a criminal syndicate, that is, an illegal or informal association of entrepreneurs and enterprises.
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