Question

list two methods that corporations used to maximize their profits and explain how they work?

Answer 1

One method is outsourcing labor to relatively cheaper markets. By sending work to countries with a lower cost of living, companies can afford to pay their workers much less.

But even that's not enough to shave costs and keep profits high. Another method is streamlining your business or manufacturing processes to make it more efficient. If the same job can be done by five people and a machine instead of by twenty people, companies are going to tend to move to the one that requires more people to do the same work.

There are pros and cons with both and these aren't the only methods that corporations have used to improve their bottom line.

Answer 2

can u explain me vertical and horizontal integration?

Answer 3

@Captain_Page_Turner plz i have test tomorrow i msg my teacher but she didn't replyied me back

Answer 4

Sure! Sorry, I was looking at another question and didn't notice you added a reply here. But I'll do my best to help out. :)

Okay, horizontal integration... It's when two of the same businesses merge together because they are in the same field. Let's look at an example:

Let's say Joe's Twinkie Megamart sets up shop in a town. He sells Twinkies so that's his business.

But Barb's Twinkie Town is also in the same business just down the street. They're also in competition with Billy's Twinkie Paradise.

But Joe's business is doing really well (he has Special Twinkies), so he buys Billy's Twinkie Paradise and Barb decides to sell her business, too, to start something new. Using horizontal integration, Joe's Twinkie Megamart has become a bigger company. Remember, all of those businesses were doing the same thing -- making and selling Twinkies. And now Joe is the only person in town doing that.

Vertical integration is a little trickier. It's when a company integrates, or merges, with something outside of its field. Let's look at Joe's Twinkie Megamart again.

Joe decides to buy a sugar factory. Now, a sugar factory isn't in the same business that Joe is in -- making Twinkies -- but they do have one of the ingredients that go into it. That's vertical integration. If he owns the sugar factory, he can sell sugar to his competitors while supplying himself with the same thing at a discount. It's the same thing if he buys a food company that sells different things other than Twinkies. He just wants the company because he can use it to sell HIS Twinkies.

Does that help you out?

Answer 5

yeah a lot. can i ask u one more question?

Answer 6

Sure! Go for it.

Answer 7

i have 3 questions pick whatever u like i need help for those like explain in simple words.
1)what is the difference between a cartel, horizontal integration, and monopoly?what are each used for?which is still being used in todays world?
2)purpose of sherman antitrust act?
3)what were the effects of major labor protestin late 1800's?why wree these protests happening?what was gov respond to labor protest?what was the respond of american public?

Answer 8

sorry sorry i know that is a lot of question

Answer 9

but i am bat in history :( i am feeling like a looser

Answer 10

u don't even know how much u are helping me my teacher,school teacher i messaged her like hpurs ago and she never replyied. I contacted flvs they told me to pay money cause i don't have the class online.

Answer 11

thanks a ton!:) u made my day

Answer 12

At least you're making an effort in asking questions! :) That's the most important thing. Instead of just saying nothing, you're at least trying. And that's a good start! I'm not that great in math, but by only asking questions could I even understand what the professor was trying to explain. So I know how it feels. Though you might have to wait for an answer from time to time, everyone here at Openstudy tries to help out when they can!

Okay, new questions! For the first one, we'll look at each term separately:

Think back on horizontal integration. But instead of merging, companies that are doing the same thing make agreements between each other to control the market. These are companies that often COMPETE against each other, but instead of doing so, agree to team up and control things like prices in their field instead of being hostile to each other. That's a cartel. They don't want to merge with each other and still want to remain independent, but have agreed to play ball with each other to keep things stable (instead of going into an all out price war, or in trying to take over each other) to provide the easiest roads to profits.

Now, horizontal integration can lead to the same thing, but the difference from a cartel is that it involves merging everything into one uber company. There's no agreement there. Companies aren't independent. They're all "integrated" into one big company. A monopoly is when a business holds absolute power in a particular market -- so much power that it can dictate everything such as prices without worrying about the competition. That's not a good thing.

Cartels and horizontal integration can lead to monopolies because they can grow so huge that they can get away with anything.

That leads to your next question, the Sherman Antittrust Act. It's main purpose is to break up these monopolies and ensure a level playing field for businesses large and small. If Joe's Twinkie Megamart has a monopoly on Twinkies, how can a smaller store ever hope to compete against him? That's what the Act is trying to prevent.

As for the labor protests in the late 1800s, I'm not too versed on those, but from what I understand, they were early efforts by workers in demanding better working conditions and rights from their employers who did many things to break up protests any way that they could legally, or illegally. But to the public, they were often seen as radical troublemakers and couldn't connect with their struggle, so it was an uphill battle for early unions to be recognized and for workers to be treated better than they were at the time.

Answer 13

i wish m teacher explain like u did!IN SIMPLE WORDS!thank u!thank u thank u

Answer 14

Yay! Glad that helped out. Good luck on your test!