Definition of Cartel:
A cartel is an organization created from a formal agreement between a group of producers of a good or service to regulate supply in order to regulate or manipulate prices. In other words, a cartel is a collection of otherwise independent businesses or countries that act together as if they were a single producer and thus can fix prices for the goods they produce and the services they render, without competition.
Group of firms or nations who attempt to control price or supply of a commodity (such as oil) through mutual restraint on production. Although such collusion among sovereign countries (such as in OPEC) is grudgingly accepted, it is illegal among corporations. See also oligopoly.
A cartel has less command over an industry than a monopoly—a situation where a single group or company owns all or nearly all of a given product or service's market. Some cartels are formed to influence the price of legally traded goods and services, while others exist in illegal industries, such as the drug trade. In the United States, virtually all cartels, regardless of their line of business, are illegal by virtue of American antitrust laws.
Synonyms of Cartel
Aktiengesellschaft, Anschluss, NATO, SEATO, Accord, Addition, Affiliation, Agglomeration, Aggregation, Agreement, Aktiebolag, Alliance, Amalgamation, Arrangement, Assimilation, Association, Bargain, Binding agreement, Blend, Blending, Blow, Body corporate, Bond, Business, Business establishment, Cabal, Capitulation, Centralization, Chain, Challenge, Chamber of commerce, Coalescence, Coalition, Collective agreement, Combination, Combine, Combo, Commercial enterprise, Compact, Compagnie, Company, Composition, Concern, Concord, Concordat, Confederacy, Confederation, Congeries, Conglomerate, Conglomerate corporation, Conglomeration, Conjugation, Conjunction, Consolidating company, Consolidation, Consortium, Conspiracy, Contract, Convention, Copartnership, Corporate body, Corporation, Covenant, Covenant of salt, Dare, Deal, Defi, Defy, Dicker, Diversified corporation, Ecumenism, Embodiment, Employment contract, Encompassment, Enosis, Entente, Entente cordiale, Enterprise, Federalization, Federation, Firm, Formal agreement, Fusion, Gage, Gauntlet, Glove, Group, Holding company, Hookup, House, Inclusion, Incorporation, Industry, Integration, International agreement, Ironclad agreement, Joint-stock association, Joint-stock company, Junction, Junta, League, Legal agreement, Legal contract, Marriage, Meld, Melding, Merger, Multinational, Mutual agreement, Mutual-defense treaty, Nonaggression pact, Operating company, Package, Package deal, Pact, Paction, Partnership, Plunderbund, Pool, Promise, Protocol, Public utility, Slap, Solidification, Stipulation, Stock company, Stump, Syncretism, Syndicate, Syndication, Syneresis, Synthesis, Tie-up, Trade association, Transaction, Treaty, Trust, Understanding, Unification, Union, Union contract, Utility, Valid contract, Wage contract, Wedding
How to use Cartel in a sentence?
- The actions of cartels hurt consumers primarily through increased prices and lack of transparency.
- In the majority of regions, cartels are considered illegal and promoters of anti-competitive practices.
- A cartel is a collection of independent businesses or organizations that collude in order to manipulate the price of a product or service.
- Desperate for oil, foreign governments had no choice but to give in to the excessive demands of the new and aggressive cartel .
- The drug cartel wreaked havoc on the community and was responsible for a variety of crimes against people and property.
- When the governments saw the excess of bananas rotting away in cellars, a cartel among those governments was introduced to control how many bananas were grown so that they might not lose value due to an overabundance of them.
- Cartels are competitors in the same industry and seek to reduce that competition by controlling the price in agreement with one another.
- Tactics used by cartels include reduction of supply, price-fixing, collusive bidding, and market carving.
Meaning of Cartel & Cartel Definition