1. What is the difference between the two types of international cartel?

Explain your answer.

ANSWER:
The difference between the two types of international cartel is that the
ASSOCIATION is engaged in restrictive practices meaning limits access to markets or
otherwise unduly restrains competition and the key variance of this type of international
cartel the participants of the association is residing in different countries – affiliation; while
COMBINED is under mutual organization or rights which bonds participating countries
with merged financial and consolidated control over method of production, labour and
profitable rules and other matters.

2. Provide at least 3 benefit of cartel among the following:

Community/Cooperative
Monopoly power
Products can be sold at high prices to take full advantage of profits.

 Assurance of profits
Since prices charged by cartels are more than the cost of manufacturing and distribution,
associates are guaranteed of a practical income/revenue margin.

 Production efficiency
The manufacturer is free to motivation on creation and labour to achieve efficiency and cost
saving.

National Level
 Economies of scale
The cartel allows the commercial, sales promotion, treatment, stuffing and transport of a
large capacity of production. Therefore, it would be able to convey lesser costs and save on
its expenditures.

 Marketing economies
There is wholesale procurement of promotion space and period in media, the cost of
advertising is also relatively less.

 Ability to withstand business cycles

They can control their production and can affect prices and continue to survive.
International Trade
 Restrictions of freedom of trade
The laws of different countries differ in their attitude as to whether and on what
conditions cartels are to be recognised as legitimate means of concerted economic
action.

   Growth  of state-monopoly capitalism international  cartels

  Seem as arrangements among particular entrepreneur countries directed primarily 
contrary to the world  socialistic economic system.

 Transformation of inter-governmental commodity agreement.

Competitive world market measured control over production, marketing, and
sometimes prices.

3. Aside from OPEC, name another example of International Cartel.

Provide the following Information:

Name of Cartel and its nature of business

PHOEBUS CARTEL - Industrial Company for the Development of Lighting
Corporations based in Europe and America founded the  cartel 
on January 15, 1925 in Geneva. Phoebus based itself in Switzerland.

Type of Cartel
ASSOCIATION type of International Cartel
- organisations co-ordinated the trading of patents and market penetration.
Increasing international competition led to negotiations between all the major
companies to control and restrict their respective activities in order not to
interfere in each other's spheres.

Area coverage
 Home territories, the home country of individual manufacturers
 British Overseas Territories, under control of Associated Electrical Industries,
Osram, Philips, and Tungsram
 Common territory, the rest of the world.