Business: Mega-Mergers

750 Words3 Pages
Mega-mergers is a combination of two are more major companies joining together according to Eitzen (365) in 2006 Mergers and acquisitions in the united states alone were worth 1.45 trillion. There are thousands of mergers each year that makes giant corporation become more bigger. For example Time, Inc., and AOL joining with Warner Communications, Texaco buying out Getty Oil, and other mergers that combined with foreign firms like British Petroleum with Amoco and Daimler with Chrysler. There are nsix negative consequences of mega mergers are: (1) It increases the centralization of capital, which causes a reduction competition also raises prices for consumers; (2) It increases the power of huge corporations over its workers, unions, and its governments; (3) The benefits of local communities are diminished; (4) It reduces the number of jobs; (5) It increases corporate debt; and (6) It is non-productive. Corporation rather create profits for their lawyers, accountants, brokers, bankers and big investors than to create and help communities bloom by building new plants or facilities, products or most importantly new jobs. Interlocking directorates is the linkage between corporation that results when an individual serves on the board of directors of two companies (a direct interlock) or when two companies each have a director on the board of a third company (an indirect interlock) (Eitzen 365) Interlocking directorates lowers competition by the sharing of information and the coordination of their policies. The Clayton Act was passed in 1914 which made it illegal for one individual to be part of the corporate board of two companies that were in direct competition to one each other. Transnational Corporation is any corporation that operates in more than one country, which provides the larger companies with enormous economic and political power according to Eitzen (366) 1 Most business and corporation are shifting overseas is for profit, profits higher overseas and manufactures and production are cheaper as well. Work is a universal activity (Eitzen, 368) The system organize work in order to produce good and other types of services for the people like foods, clothing, shelters, education and ETC, the work force gives individuals a social identity, economic resource and a social location. Although the system organize unsafe working environment for its workers in some cases where some worker feel alienated, exploit and often dehumanized. Workers start to feel bored with the job because of the everyday task, doing the same thing over and over again.
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