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Cartel
 

Cartel, one of the forms of monopoly association whose participants conclude agreements on prices and markets, exchange patents for new technology, etc., while retaining production and commercial independence. The aim of a cartel, like that of any other form of monopoly association, is to obtain monopoly superprofit and strengthen its positions in the competitive struggle. Enterprises belonging to the same industrial sector are united into a cartel. To sustain high monopoly prices (see Monopoly Price), cartel agreements prescribe certain limitations on production facilities and marketing of goods for all cartel participants, as well as quotas for each participating party. If any cartel participant exceeds his quota, he is asked to 35 pay a fine to the cartel fund. Cartel agreements often contain provisions limiting workers’ right to strike or directed against trade unions. The cartel form of monopoly association was most extensive in pre-war Germany, and now it dominates in the Federal Republic of Germany. Under monopoly capitalism, cartels may include the largest trusts. In some countries, the role of cartels is often played by sectoral associations of business people (see Industrial and Trade Associations), who divide markets between themselves. As of the turn of the century the formation of international cartels began which resulted in the economic division of the world. In the period before World War II international cartels were the main form of international monopoly. And although since the war their importance has somewhat subsided as they are being replaced by new types of international monopoly such as transnational monopolies and international monopolies, cartel agreements on the division of markets still exist in some sectors of the world capitalist production.

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