Economic Developments: Cartels and Trusts Flashcards
What were Cartels?
When large companies in an industry came together to make it so that no smaller companies could compete with them
What were Trusts?
Schemes set up to allow businesses to own shares and properties outside of the state they operated in
What would be an issue with Cartels for smaller businesses?
They would never be able to grow as they were too small to compete with the Cartel
What would be an issue with Cartels for Farmers? Why?
They would have to pay high prices especially for transport as they had no other option of which railroad network to use that might be cheaper
What would be a benefit of Cartels for the large businesses in them? (Name 2 benefits)
They would have no competition and could keep the price and quality of what they sold the same
