In view of the increasing concentration of the U.S. business sector into ever-fewer numbers of giant corporations, a) is this growing concentration an economic problem; and b) what specific actions would you recommend to reduce economic concentration?

Need a paper written? Our academic experts can create an original essay on any subject for ~~$13.00~~ $11/page Learn More

The increasing concentration of the American business sector into fewer giant corporations is an economic problem because it decreases competition. Corporations control significant market segments, making it impossible for small businesses to compete with them on equal terms.

Moreover, giant corporations are often monopolists in their economic sector, which leads to a decrease in product quality, a price increase, and overall client dissatisfaction.

These are adverse effects of the lack of competition, which is the basic principle of the market economy. It is possible to reduce economic concentration by providing small businesses with governmental financial aid and social support.

For instance, when customers choose products from the local dairy producer instead of buying similar products from the giant corporation, they support the functioning of the local small business and reduce economic concentration.

Rate the answer:

Further research on topic

UK Business Sectors and Their Value to the Economy

Answer by Academic.tip's expert

An answer to this question is provided by one of our experts who specializes in business & economics. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2023) 'In view of the increasing concentration of the U.S. business sector into ever-fewer numbers of giant corporations, a) is this growing concentration an economic problem; and b) what specific actions would you recommend to reduce economic concentration'. 6 May.

Reference

Academic.Tips. (2023, May 6). In view of the increasing concentration of the U.S. business sector into ever-fewer numbers of giant corporations, a) is this growing concentration an economic problem; and b) what specific actions would you recommend to reduce economic concentration? https://academic.tips/question/in-view-of-the-increasing-concentration-of-the-u-s-business-sector-into-ever-fewer-numbers-of-giant-corporations-a-is-this-growing-concentration-an-economic-problem-and-b-what-specific-actions-wo/

References

Academic.Tips. 2023. "In view of the increasing concentration of the U.S. business sector into ever-fewer numbers of giant corporations, a) is this growing concentration an economic problem; and b) what specific actions would you recommend to reduce economic concentration?" May 6, 2023. https://academic.tips/question/in-view-of-the-increasing-concentration-of-the-u-s-business-sector-into-ever-fewer-numbers-of-giant-corporations-a-is-this-growing-concentration-an-economic-problem-and-b-what-specific-actions-wo/.

1. Academic.Tips. "In view of the increasing concentration of the U.S. business sector into ever-fewer numbers of giant corporations, a) is this growing concentration an economic problem; and b) what specific actions would you recommend to reduce economic concentration?" May 6, 2023. https://academic.tips/question/in-view-of-the-increasing-concentration-of-the-u-s-business-sector-into-ever-fewer-numbers-of-giant-corporations-a-is-this-growing-concentration-an-economic-problem-and-b-what-specific-actions-wo/.

Bibliography

Academic.Tips. "In view of the increasing concentration of the U.S. business sector into ever-fewer numbers of giant corporations, a) is this growing concentration an economic problem; and b) what specific actions would you recommend to reduce economic concentration?" May 6, 2023. https://academic.tips/question/in-view-of-the-increasing-concentration-of-the-u-s-business-sector-into-ever-fewer-numbers-of-giant-corporations-a-is-this-growing-concentration-an-economic-problem-and-b-what-specific-actions-wo/.

Work Cited

"In view of the increasing concentration of the U.S. business sector into ever-fewer numbers of giant corporations, a) is this growing concentration an economic problem; and b) what specific actions would you recommend to reduce economic concentration?" Academic.Tips, 6 May 2023, academic.tips/question/in-view-of-the-increasing-concentration-of-the-u-s-business-sector-into-ever-fewer-numbers-of-giant-corporations-a-is-this-growing-concentration-an-economic-problem-and-b-what-specific-actions-wo/.

Copy