What is the meaning for cartel?

A cartel is a collection of independent businesses or organizations that collude in order to manipulate the price of a product or service. Cartels are competitors in the same industry and seek to reduce that competition by controlling the price in agreement with one another.

What are the 3 types of cartel?

Types of Cartels

• Quota fixing cartels. The objective of these cartels is to restrict supply.
• Price firing cartels. These cartels regulate prices by restricting output.
• Term fixing cartels. Terms of trade are fixed by the cartels.
• Customer assigning cartels.
• Zonal cartels.
• Super cartels.
• Syndicates.

What is commerce cartel?

A cartel is where two or more businesses agree not to compete with each other. This conduct can take many forms, including price fixing, dividing up markets, rigging bids or restricting output of goods and services.

What is drug cartel definition?

Drug cartel, an illicit consortium of independent organizations formed to limit competition and control the production and distribution of illegal drugs. Drug cartels are extremely well-organized, well-financed, efficient, and ruthless. Since the 1980s, they have dominated the international narcotics trade.

Are cartels good for the economy?

Cartels harm consumers and have pernicious effects on economic efficiency. A successful cartel raises price above the competitive level and reduces output. All of these effects adversely affect efficiency in a market economy.

Why are cartels prohibited?

The prohibition of cartels also applies to agreements between companies that are active on different market levels. For example, agreements on retail prices concluded between manufacturers and retailers are prohibited. Anti-competitive agreements lead to excessive prices coupled with inferior product quality.

Who is the biggest cartel in the world?

Sinaloa cartel
As of 2021, the Sinaloa Cartel remains Mexico’s most dominant drug cartel….Battling the Tijuana Cartel.