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Need help in paper about Corporate concentration
Paper based on the article, the questions on the sheet and the photo upload
– Times New Roman 12 double spaced paper
– PLEASE BE IN 2 PAGE
Questions for Corporate Concentration
1. List 5 reasons why competition is important. (p 302)
a.
b.
c.
d.
e.
2. What is the argument in favour of allowing for large business and corporate concentration (i.e. mergers that reduce the number of firms creating few but much larger companies) (p 303)
a.
b.
c.
3. What is the counter argument against question 2? (pages 160, 162, 165)
a.
b.
c.
4. Do freer markets ensure competition or efficiency? (p 162)
5. Find three reasons why the Combines Investigation Act failed? (p302)
a.
b.
c.
6. What are the goals of the Competition Act (1986)?
a.
b
c.
7. What is the purpose of the Bureau of Competition, what government department does it report to and how are unresolved issues handled? (p 165, 303)
a.
b.
c.
d.
8. How successful has the Bureau of Competition been in resolving disputes over mergers compared with the Combines Investigation Act?
a.
b.
9. Read the case study on p 161-2 and answer questions #3-5.
Q3.
Q4.
Q5.
10. Read the attached case on Microsoft and answer questions 1-5.
11.
Take into consideration all of the information that you have gathered from this question sheet and the case studies. In a properly structure, one to two page double spaced report, use the information you gathered to answer Q6 on page 162. This report will be handed in on Wednesday.
The Microsoft Case
The Federal Trade Commission in the United States began investigating Microsoft in June 1990. In 1993, The United States Justice Department took over the investigation and, in 1994 the Justice Department and Microsoft signed a consent decree stating that Microsoft cannot require computer makers that license its operating system to license any other software products. In other words, if a computer manufacturer installed a Microsoft operating system, the manufacturer would not be required to install any other Microsoft software, such as an internet browser. In 1997, the Justice Department stated that Microsoft had violated the decree by bundling Internet Explorer with Window 95. The defence given by Microsoft was that internet browsers are an integrated part of the operating system. Microsoft was required to separate the internet browser from the operating system. In 1998, Microsoft agreed that computer makers cold install Windows 98 without the Internet Explorer icon.
In 1998, a new charge against Microsoft was investigated. The charge stated that the company used its monopoly power to thwart competition. In November 1999, a judge ruled that Microsoft had monopoly power with its Windows operating system for personal computers and this power was used to the detriment of consumers, computer makers, and other companies. A mediator was appointed to reach an agreement with Microsoft to settle this case. By April 1999, it was deemed that mediation had failed and Judge Jackson brought down a decision: he stated that Microsoft had maintained its monopoly power by anti-competitive means and had violated the Sherman Antitrust Act by tying its internet browser to its operating system. Consequently, Jackson ruled that Microsoft should be split into two companies: one company would be for the Windows operating system and the other company would be for applications software such as Excel, Word, and Internet Explorer. Appeals could delay the implementation of this order for several years.
There is precedence in the United States for splitting monopolies into various sections. Standard Oil and AT&T were split after being found guilty of monopoly charges. Standard Oil was split into 34 regional monopolies and AT&T was divided into seven local phone companies and a long-distance company.
Questions:
1. Do you believe that Microsoft acts as a monopoly in Canada?
2. Is Microsoft a natural monopoly?
3. The United States Justice Department ruled that Microsoft abused its monopoly power. How did Microsoft maintain its monopoly in the face of competition?
4. Search the internet to determine the status of Microsoft’s appeal.
5. What perspective does this give you on Microsoft’s bid to take over Yahoo?
Corporate Concentration Rubric
Name: ____________________________________
Provide a typed response of one to two pages in length, and double spaced of:
Take into consideration all of the information that you have gathered from this question sheet and the case studies. In a properly structure, one to two page double spaced report, use the information you gathered to answer Q6 on page 162. This report will be handed in on Wednesday.
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Criteria |
Level 1 (10 to 12) |
Level 2 (12 to 14) |
Level 3 (14 to 16) |
Level 4 (16 to 20) |
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Application Making connections within and between handout questions 1-10 to question 11 |
– makes connections within and between |
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Level 1 (5 to 16) |
Level 2 (6 to 7) |
Level 3 (7 to 8) |
Level 4 (8 to 10) |
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Communication
Expression and organization of ideas and information (clear expression, logical organization) in written form |
– expresses and organizes ideas and information with limited effectiveness |
– expresses and organizes ideas and information with some effectiveness |
– expresses and
organizes ideas and information with considerable effectiveness |
– expresses and organizes ideas and information with a high degree of effectiveness |
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Total /30 marks |
Note: A student whose achievement is below 50% at the end of a course will not obtain a credit for the course.
