Download Agriculture’s Futures: America’s Food System by Dr. L. Tim Wallace (auth.) PDF

April 11, 2017 | Food Science | By admin | 0 Comments

By Dr. L. Tim Wallace (auth.)

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The opposite is true in good times. S. and the world will therefore exert a large influence on the course of firm concentration. Different forms of business organization will emerge as imaginations are stirred, as potentials can be achieved, and as laws permit. Yet certain characteristics of profitable enterprises will remain: growing firm size continues to add income potential; management stays critical to success; effective control mechanisms are vital; market access and controls help restrict competition; and technology and "research and development" can be controlled and used more easily in a large firm.

Industries with products that can be effectively differentiated spend relatively high percentages of their sales revenue on advertising, and they also tend to be more highly concentrated than other industries. They also usually have higher rates of return on net worth. Moreover, industries with large advertising expenditures have become more highly concentrated over time. The effectiveness of product differentiation as a barrier to entry of new competitors appears greatest where advertising levels are highest.

Some regard the tensions created by MNC growth as irrational xenophobic responses to the inevitable industrialization and integration of the global economic system. Irrational or not, many countries have placed stringent controls on entry by foreign investors. At a more basic level, sober commentators continue to question whether the MNC is the ideal institution for the international transfer of capital, technology, and modern business skills. A MNC is a firm that owns, controls, and manages income-producing assets in more than one country, primarily through an affiliated or subsidiary corporation.

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