THE ANTITRUST MOVEMENT AMIDST A FRAGMENTED FEDERAL November 5, The Antitrust Movement amidst a Fragmented Federal Ch. 6 The economic development of a nation highly depends on the business activities within the nation and transactions with other countries or in other words international trade. The article grants me the opportunity to understand the world of business during the early nineteenth century. The article begins by giving me a brief description of how business or rather service providers operated before the issue of merging came into place. Further importance of the article is seen by the critical analysis of the structural defects on the strategies employed by the state to control the business enterprise.
I gain vast knowledge by reading through the two main legal traditions employed by the state in the regulation process. The most efficient technique among the two is the right for the state to charter corporations. It ensured that the activities of the enterprise could be controlled. The article in the reading that caught my attention was the information on great merger movement. The author ensures that all the relevant information is well tackled.
The origin of the mergers with examples of the companies that were among the first business organization to practice this structure is given. The article gives me an opportunity to understand the step undertaken by the President Roosevelt to protect the people against cases of a monopolistic market. Several analysts and their publications such Kolko are analyzed in the article (The Antitrust Movement amidst a Fragmented Federal State 161). Different questions about techniques used by the authorities to control the situation are analyzed.
An important aspect tackled is the answer to the loose end found in the federal policy employed to curb the situation. The formed enterprises prevented competition by ensuring that they controlled the main inputs for production of a certain product thus can easily control entry to that line of business. An important concept in the reading that I can relate to the economics is the aspect of monopoly. It was horrific for the people in America to witness the merger as it would create monopolistic type of market structure. The prices of goods and services are no longer be determined by competition but the producers.
It means that the prices can be raised with little influence from the external environment.