Syndicate is... the meaning of the word "syndicate"

The Syndicate – is an Association of entrepreneurs, centrally, for all of the members carry out the purchase of raw materials and sales of products. All companies-participants of the syndicate will retain autonomy in industrial matters, but at the same time have a commercial relationship.

The meaning of the word “syndicate”

The Term “syndicate” has many interpretations. Previously, under the syndicates meant any alliances that created the unity of the material interests of the participants and did not belong to number of ordinary societies, civil or industrial. In Russia, the syndicates have spread in the late XIX - early XX centuries, but the most popular they got in France, which existed and entrepreneurial, and work associations.

If we talk about other countries, then there's syndicate is one of the business unions, in particular those aimed at achieving a level of profits, beneficial to all parties, through joint regulation of the sale of its products and procurement of required raw materials. In this sense, the term “syndicate” is an international concept.

The reasons for the formation of monopolies, trusts, cartels and syndicates

In Russia the impetus for the creation of monopolies and the transition to imperialism has become a world economic crisis of 1900-1903 years. the Crisis was particularly significant because the preceding lift was created to a certain extent artificial. Due to the fact that the country has experienced the dominance of foreign capital, there was an acute shortage of cash. In connection with the crisis of the Western capitalists began to withdraw their funds from the country. Russian banks in the period closed the loan, thus putting the Industrialists in the difficult conditions of sales.

Recommended

Staff evaluation: system and methods

Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...

How to start your own business: important aspects.

Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...

Business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...

Monopoly as a way of dealing with the crisis

Without a loan machine-building plants have not had the opportunity to buy iron ore, metal and so on. Products accumulated in the warehouses, factories stopped, because it could not implement the product and to purchase fuel and raw materials to continue production. Trading between the enterprises without credit stopped. It is for this reason and began to form monopolies. Industrialists of each sector at the Congress began to discuss the issues of coping with the difficult economic situation in the world.

And as one of the ways out of the crisis was the decision to apply the Association of sales and education General of trade organizations, i.e. syndicates. This gave the opportunity to regulate prices and control the market. Monopolies in Russia existed in the form of syndicates. The syndicate – the lowest form of monopoly, as in this case United not production, but only to sell products. Besides, it is easier to organize than the trust. The Industrialists had enough to get together and negotiate. They remained the owners of their companies within the syndicate, and the trust arises in the course of a long competition, where one company ruining their rivals.

What is the difference between syndicates from other business associations

To understand the difference syndicates from other associations, should analyse the purpose of their education and main activities. Trusts and cartels were created, as a rule, those entrepreneurs who were engaged directly in production of goods. The activities of such associations was aimed at the regulation of production volumes, marketing of products and reducing production costs. The main purpose of their actions was the prevention of the overproduction of profitability of the combined companies.

Business syndicates – the first Association of organizations working in the same industries. It is a Union of sellers of the same commodity group. In many cases, these syndicates were United major competing enterprises to achieve a high level of profitability of their business. The main tool they used, this is a contractual adjustment of prices. Syndicates in Russia and in other countries too, sought to monopolize the relevant industries and markets in more than trusts and cartels.

Types of syndicate in Russia

Among the types of syndicates operating in Russia, mostly dominated by those trade unions, which combined the production and further sale of a particular category of products. In this case, the name of the term “syndicate” was not used. Created Union according to the degree of consolidation can be divided into the unions of enterprises, which were created to achieve some limited goals, and actually trusts and syndicates.

According to the territorial jurisdiction syndicates in Russia was divided into local and national. The first monopoly appeared in Russia in the early 80-ies of the 19th century. But the organizational structure of the associations at that time was far from perfect. The cartels and the syndicates, basically, ruled by a Congress of manufacturers and factory owners, which consisted of a multilateral agreement on the establishment of associations.

The First form of monopoly

The Cartel agreement was first established and independentlyfunctioning of the monopoly form. The cartel – is an agreement between legally and commercially independent organizations, which regulate pricing and divide markets. In this case, fairly large organizations enter into a legal agreement with similar businesses.

Pay attention that the cartel agreement as a form of monopoly proved to be quite tenacious. And there is now a considerable amount of informal, and legal cartels in the sphere of export-import. The syndicate – this is another common form in which there was a capital–monopoly. In such alliances it is represented by the agreement under which restrictions are imposed on the sovereignty and independence of all participants.

In addition, there is such a thing as a crime syndicate that is illegal or informal Association of entrepreneurs and enterprises.