Conglomeration, which is when one big company buys may small companies in order to become even larger and wealthier. All you hear these days seems to have to do with one of those huge companies, like Disney. This is because of conglomeration. In class we had a big visual map displaying which mega companies owned which smaller company, and none of us could think of a single well-known American company that was not actually owned by a larger company.
There are several pros and cons to conglomeration, which I will discuss briefly.
Pros: Why is Conglomeration Good?
Conglomeration makes a lot of money, for one thing. This is, of course, the main reason for doing it. It's also much more efficient, and gets rid of redundancy.
Cons: Why is Conglomeration Bad?
Conglomeration causes a loss in jobs when one company buys another. The main problem, however, is that it gets rid of diversity. Whereas previously there would be a large variety of merchandise, news, media, etc., after conglomeration, the many companies owned by the mega corporation are all doing something similar. Conglomeration causes a monopoly.
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