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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

928.0. "Global Monopolies" by ZENDIA::BOIREAU () Tue Oct 17 1995 18:22

    I'm trying to find out what the 2 true monopolies are world wide for a
    homework (extra credit) assignment.  According to my teacher there is
    one monopoly in the U.S. and two outside of the U.S.  I believe the one
    in the U.S. is the post office.  He said that the products/services was
    something that we use and/or buy daily for the two global monopolies.
    
    Can anyone out there think of two global monopolies that fit the
    criteria.  My class meets Wednesday night.  
    
    Tasha  
T.RTitleUserPersonal
Name
DateLines
928.1diamondsNOTAPC::LEVYTue Oct 17 1995 21:091
    DeBeers Diamond Marketing Organization
928.2EVMS::HALLYBFish have no concept of fireTue Oct 17 1995 21:3110
    The USPS has a legal monopoly on the delivery of first class mail
    inside the USA. But if that fits your definition of "monopoly" then
    I'd say that Aeroflot has a monopoly on domestic Russian air travel.
    
    How about NASA having a monopoly on US space travel?
    
    None of these seem "global" enough, including the post office.
    DeBeers sounds right, though.
    
     John
928.3Is the DRUG Industry a Global MONOPOLY...ACISS1::PATELTue Oct 17 1995 21:458
    Could it be that the DRUG Industry is considered to have a monopoly
    even though it only last 12-15 years?.  This might work since for each 
    drug that is researched and developed by the GLOBAL COMPANY, it has a
    full protection for the 5-10 years it is out.  NEUPOGEN by Amgen is a 
    classic example of a Global Monoploy at this time for this WORLD. 
    
    Ken
    
928.4OPEC?PCBUOA::macspc.ako.dec.com::MACDONALD_MStill crazy after all these years!Thu Oct 19 1995 14:556
	While Debeers fits the monopoly definition, the base noter asked 
about products people buy every day, hence diamonds don't fit.  
	I'd say OPEC, although it's technically a cartel, not a monopoly 
isn't it.

Mac
928.5Thanks for your helpZENDIA::BOIREAUThu Oct 19 1995 15:216
    I want to thank everyone for helping me with my monopoly problem.  The
    teacher mistated some of the criteria.  
    
    The US monopoly is Major League Baseball.
    
    The global monopolies (actually cartels) are DeBeers and OPEC.
928.6VAXCPU::michaudJeff Michaud - ObjectBrokerThu Oct 19 1995 16:405
>     The US monopoly is Major League Baseball.

	And I believe this year there was some rumblings that congress
	or some government agency was looking at getting rid of this
	monopoly.
928.7Zamboni?TALLIS::GORTONTue Nov 07 1995 14:428
    Re: .5
    
    >    The US monopoly is Major League Baseball.
    >    The global monopolies (actually cartels) are DeBeers and OPEC.
    
    Zamboni, the manufacturer of the machines which clean up/refinish
    the ice on skating rinks is the monopoly example I've heard.  Do
    they now have a competitor?
928.8NLA0::ONOThe Wrong StuffThu Nov 09 1995 23:2518
    >    The US monopoly is Major League Baseball.
    >    The global monopolies (actually cartels) are DeBeers and OPEC.
    
    Zamboni, the manufacturer of the machines which clean up/refinish
    the ice on skating rinks is the monopoly example I've heard.  Do
    they now have a competitor?

Zamboni might have a corner on its market, but it is not a 
monopoly since there *could* be open competition.

Major League Baseball is a legal monopoly, with competing
"major leagues" prohibited by special U.S. antitrust exemption. 
Effectively all diamond producers sell to DeBeers which then
controls supply and prices to the marketplace.  OPEC meets
regularly to set production quotas and prices, though there is
always some "cheating" against these. 

Wes
928.9not a monopoly SUBPAC::MAGGARDMail Ordered HusbandMon Nov 13 1995 16:174
FWIW, Rinkmaster and Roby Steamer also make ice "cleaning" machines.

- jeff
928.10Some Russian producers are sidestepping DeBeersNEWVAX::BUCHMANUNIX refugee in a VMS worldTue Nov 14 1995 17:4919
    > Effectively all diamond producers sell to DeBeers which then
    > controls supply and prices to the marketplace.
    
    DeBeers wields great influence but does not have total control. It is
    currently having trouble keeping the second biggest diamond producer --
    Russia -- toeing the company line. About $1B worth of Russian diamonds
    are sold via channels, i.e., though DeBeers; but about the same amount
    are estimated to be sold through secondary markets outside of the
    pricing agreement with DeBeers. The reason is that the Russians holding
    these diamonds are desparate for cash, and don't mind getting a
    discount if they can get market share.
    
    DeBeers did compete head to head against the Russian price-cutters in
    the Australian market, where many of the Russian diamonds are marketed;
    a subtle warning that they could squeeze out those producers who won't
    play ball according to their rules. Not sure if that strategy has
    worked, though.
    			Jim B.