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Q: Should tom's stay independent-or should it merge with a larger firm?
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Continue Learning about Economics

Why do companies merge?

Companies merge for many reason , companies merge when they are woth more together than apart.. some do to cut costs i.e in vertical integration when a corp. merges with either its supplier or consumer .. others merge for growth and market power and to eliminate competition.. these mainly merge with their competitors to create more power in the markets i.e AT&T and Bell South both are Telecom companies. its not the best idea, but actually some companies merge to diversify, like acquiring another company in a seemingly unrelated industry in order to reduce the impact of a particular industry's performance on its profitability.


What is monetary union?

Monetary Union is where 2 or more countries, using different currencies merge their currencies. They may create a new currency, as they did in 1999 with the creation of the Euro.


What happens with free enterprise?

Not very well. The essence of the free enterprise system is that different entrepreneurs will compete on a level playing field and that the customer will select the business that is providing the best product and service and that business will succeed . . . until another competitor comes along. It doesn't work in the US because of a number of factors which inhibit competition and tend toward monopolies: 1. Larger corporations are given tax breaks by the government which smaller ones do not get and so the smaller ones cannot compete. 2. Larger corporations are able to use the economics of scale to swallow up potential competitors. They can undercut prices and drive small businesses bankrupt, or force them to merge because the big corporations have much larger reserves of money. 3. Larger corporations are able to bribe politicians (this is called lobbying) into passing laws which accomodate the larger corporations' agendas, thus enabling them to become larger and more powerful. 4. Finally, the idea that unsuccessful businesses fail, a cornerstone of free enterprise, does not apply to large businesses which are considered "too big to fail" and which are given government bailout money no matter how ineptly they are administered. In other words the US economy is resembling more and more the economy of Soviet Russia, except that instead of inefficient monopolistic industries being run by the government, they are running the government.


How did trust and mergers hurt competition?

Trust and mergers hurt competition because they help create monopolies. When two companies merge, they are no longer competitive with each other and have a size advantage over companies that were formerly competing with both of them.


Why are the lines between the categories of financial firms becoming more blurred than in the past?

because banks, thrifts, pension companies, insurance companies, and security firms can now merge with one another and sell each other's products

Related questions

What is usually larger a sea or ocean?

Ocean is much larger as river get merge with sea and sea get merge with ocean


Is the extra space in front of a large truck needed for other drivers when merging onto a freeway?

You should never merge into the area that makes up a vehicle's safe stopping distance. Trucks need a larger distance than a car to stop, so a larger distance should be left in front of them when merging.


What should you do if WikiAnswers does not merge the similar questions that you have recommended a merge for?

If you believe that two questions should be merged, but the recommendation for one did not seem to work, contact any Supervisor or Community Assistant on WikiAnswers. They can merge questions very quickly for you if they are, indeed, similar enough.


What were Adolf Hitler's beliefs about the world?

Should be free of Jews and that Asia and Europe should merge into a super continent and that everyone should be Nazis


When merging and entering an expressway you should?

Use your indicator signal to advise vehicles on the expressway that you intend to merge. Match your speed with the vehicles in the slow lane, find a gap in the traffic and enter the slow lane.


When entering a freeway what should you do?

Increase speed to merge with the flow of traffic.


If you are driving in the far right lane on the freeway and see a 'merge' signyou should?

Merge into the nearest left lane when it is safe to do so.


Is ATT and Centennial Communications going to merge?

Soon they will. However, those involved in the talks of the merge are not allowed to talk about the merge outside of the committie. It is now down to the FCC however. And coming from an inside employee, however not on the bored that is involved with the merge, From what I have herd, they should me starting the merge in November or so. You should be able to merge over to AT&T then if things go like I was last told. However the entire buy out will take 2 years.


How do you merge answers on WikiAnswers?

Only Supervisors have the ability to merge questions. Non-supervisors who reword questions may trigger a merge that will be sent to a Community Assistant for review. If the two questions should be merged, the CA will merge them.


What should you do when you find two questions that should be merged?

If you are a contributor, you can suggest a merge by selecting the improper question, or if it's just an alternate wording with no errors: the one with the poor answer or no answer, and click edit for the question wording. Erase its wording and paste the wording of the other question and click save. It will ask if you want to merge, click yes. This will send a merge request. If you do not wish to do that, you can sent the links of the questions to a Supervisor. If you are a Supervisor, use your merge tool and merge them. The option of merging should be found in your blue sidebar. Select the one with improper wording, or if they both contain no errors, chose the one with no answer (if one has a bad answer then delete it), click merge, and copy and paste the other question into the second white box and click merge. You can also edit the one you want to merge and put in the wording of the other question into the box and click save. It will give you an option to merge the two.


Which actions should be done throughout the mail merge process?

Save and Proof


Who has the right of way in a road when two lanes turn into one and there is no lane straight but both merge into the one lane in England?

I don't know about England, but, there should be a warning sign or arrows indicating that a lane is going to merge. Also, the person who is there first should have the right way.