Samoylova Y.A., Usachev V.A.

Donetsk National  University of Economics and Trade named after Mykhailo Tugan-Baranovsky

Monopoly in the USA

Problem of monopolization of economic life, the competition in the markets today attract attention not only professionals but also the general public. People are interested to understand more about the nature of monopolies, their causes, their role in the economy, ways of controlling monopolies. Trying to answer the questions that arise in connection with the activities of monopolies, experts are turning to the history of monopolies, the conditions of their functioning in different parts of the world. United States of America is a shining example of economic development in terms of monopolization.

The purpose of my article is to investigate the efficiency of the development of monopolies in the United States.

In the middle of the ХIХ century, under President Abraham Lincoln United States was a country of small business, a monopoly in this period was virtually unknown concept. The only monopoly that time may be considered a telegraph company Western Union. [1]

Today, the largest USA monopolies exploit tens and hundreds of thousands of workers and have a multi-billion dollar capital, this manifests itself primarily in heavy industry. Ferrous Metals of USA is characterized by a high degree of concentration and monopolization of production. United States Steel Corp. -'s Largest steel company, which melts about 25% steel and 40% of pig iron in the country. The company operates an iron ore deposit in the United States, Canada, Venezuela, Brazil, and coal - in the U.S., manganese, chromium and other ores – in Brazil, Gabon, France and South Africa. Controlled by the Morgans, Boston and Chicago financial groups.

The oldest monopoly in the USA is the oil trust Standard Oil. The company carries out production, transportation, refining and marketing of petroleum products. Standard Oil exists as one of the oil companies since 1870, and as trust - since 1882. Capital of more than a billion dollars. Standard Oil of fisheries has not only in the U.S. but also in Venezuela, Colombia, Peru, Canada, the Middle East, etc. In 1911, the company Standard Oil decision of the government was shut down, but on this basis, there was a unique list of prominent corporations: Standard Oil, New Jersey, was the ESSO, now Exxon; Standard Oil, Ohio, became Sohio; Standard Oil, Ind., became Amoco; Standard Oil, New York, was the Mobil Gas; Standard Oil, Calif., was Chevron; Standard Oil, became ConocoPhillips; The Ohio Oil Company - often referred to simply as "Ohio", which sells gasoline under the brand name Marathon. The company is now known as Marathon Oil Corporation, and was often a competitor based in the state department of Standard Oil, Sohio [2].

American monopolies achieved record for the world thanks to the scale of the country's vast resources, well-developed rail network and air lines, allowing companies to sell their products across the national market, the use of various techniques to enhance capital and, above all, the public promotion of the industry.

It should be noted that the world's growing power of transnational corporations gain, which means that traditional monopoly extending their reach, engaged in the production and marketing of products other than the one they had done originally by combining a variety of industries and different countries . In the leading industries such as biotechnology, information technology, new materials, electronics, etc., corporations create strategic alliances for technology cooperation with the aim of reducing the period of innovation, reduce costs and risks. In the automotive industry, food production and other industries related to the production of consumer goods, the main motivation for the partnership is the access to the market. In the extractive industries strategic alliances are formed in order to reduce cost and risk in the development and production of minerals [3].

Based on this study it can be concluded that the effectiveness of the monopolies and their transformation into a multinational company is largely determined by the degree of coherence within the country and on the world stage. The specific role played by the state to regulate the processes of concentration and property development companies and contributing to the implementation of the main strategic objectives of economic policy in general, and business organizations in particular.

Literature:

1. http://ru.wikipedia.org/wiki/Western_Union

2. http://polbu.ru/ergin_petroleum/ch04_all.html

3. http://literus.narod.ru/Bussines/MirEcon/1-g1-5.htm

4. Экономическая теория: учебник / Под. общ. ред. В.И.Видяпина, А.И.Добрынина, Г.П.Журавлёвой, Л.С.Тарасевича. М., 2006