The Economics Behind Cartels Explained in One Minute: From Drugs to Oil (OPEC), Diamonds, etc.
HTML-код
- Опубликовано: 19 фев 2020
- Let's just say that if the only information you have about cartels comes from Netflix series related to drug-related "businesses" or various movies, you aren't even beginning to scratch the surface.
For example, did you know that the world's number one cartel is none other than OPEC? Or that cartels are formed when it comes to a wide range of products/services, including... diamonds?
In just approximately one minute, this video covers the economics behind cartels and explains everything you need to know about the concept. I have explained what cartels are (the definition, if you will) and through carefully-chosen examples, have tried to make it clear why despite the major risks involved, many individual/entities end up concluding that the pros outweigh the cons.
After watching this video and meaningfully understanding the explanation I have tried to put on the table, you might just see the world around you (including the next Netflix series you'll be watching, heh) in a slightly different light because, make no mistake... various cartels are all around us :)
GiganticWebsites.com is a project through which I make it possible for people to build truly gigantic websites (thousands of articles each!) at ridiculously low prices. If you have a great domain you want to turn into an amazing website or an existing site you'd like to upgrade/scale, visit our website or check out the One Minute Economics presentation video below:
ruclips.net/video/gE8yEOQFMvo/видео.html
Please note that this comment is not an ad for a third-party service provider. GiganticWebsites.com is my baby 100% and I will personally be involved in each and every project so as to ensure the website turns out great :)
Be Our Guest
We have this in the global coffee industry. All the growers(farmers/planters) are going bankrupt as bigger companies control the markets & keep prices low.
Same with rubber industry.
Definitely a practice more widespread than people realize
Great video
very well explained
Always a pleasure to hear that, thank you!
NOW i know !
Clearly explained.
Shared with 3 people
Thank you so much, hearing that others are spreading the word about my work always makes my day! :)
Can you explain consortium and whats the difference between consortium and cartel ? :)
Great video, your work is awesome, in my opinion I think all industries need coordination, set prices and profit margins, otherwise the competition may lower the price to sell more, affecting the performance of the industry. that's problematic because you could be forced to lower your price, lose money and work more. The biggest example is China, they saturate the markets with cheap products and good quality, sooner or later they have a bigger slice of the cake. I dedicate myself to importing Chinese product to Mexico and I have seen how the competition is becoming violent in terms of price, many Mexican producers are affected while other resellers obtain short-term benefits, however their profits are decreasing while larger resellers are emerging. For this reason, I think the coordination of industries is very important. greetings from Mexico
Hi Omar. While I understand the "race to the bottom" argument, what is your view with respect to this behavior potentially inhibiting innovation?
@@OneMinuteEconomics It is true that throughout history innovation has been limited, we have the example of Tesla's inventions, planned obsolescence in the electronic industry, another example would be the eternal light bulb from Shelby Electric Company, after knowing that the invention of the light bulb which lasts for more than 100 years, people would no longer buy more light bulbs and that would cause the light bulb industry to decrease, directly affecting employment. Without the agreement and coordination of the industries, the profit margin falls and with it the generation of jobs, I believe that without it economic chaos is generated. The downside is that this leads to oligopolies and abuse in the supply chains, becoming "Cartels". what is your opinion on this topic and what solution would you propose?
What software do you use to create your videos?
Hi James, it's GoAnimate -> Vyond
Awesome lol
Thank you, thank you very much! /Elvis voice :)
One Minute Economics needs your help! Please give me a minute (heh) of your time by watching the following video if you find the channel useful, literally anyone can help (either financially or by spreading the word about my work): ruclips.net/video/io04ckq1X1M/видео.html
I hope this isn't your actual voice😭
:P