Antitrust Laws - Coursework Example

The price based competition results in exploitation of the customers whereas; they will not have cheaper products on their disposal. The process of research and development will become hindered as the monopolist does not need to develop new products because of the dying competition. Additionally, the term merger is used to define a contract in which two or more companies decide to construct a new one while, all of them become as one after the due process is complete. The acquisition on the other side involves a deal in which only one company loses its identity in order to become the part of another.

In summary, one company buys another to become more prominent in the competition zone (Weber, Shenkar, & Raveh, 1996). Following section runs an analysis about effects of external environment on management’s decision making: - 1. Political Environment: - The political environment of the country encompasses the nature of government and stability of political atmosphere is also necessary for businesses to flourish (Boddewyn & Brewer, 1994). The national systems that are unstable do not offer good business environment.

Additionally, the governmental policies radically change as well. In this kind of mechanism business management must resort on use of intensive risk management techniques. 2. Social Systems: - The social and cultural systems of the country govern the ways in which people relate to each other. The organizations need to blend in the system so that the customers and other stakeholders should consider them as their own (Dowling & Pfeffer, 1975). 3. Ethical Climate: - The organizations while operating in a specific national system require adapting to the cultural sense of right and wrong in order to avoid the possibility of committing a wrong just to repel all of the society (Payne & Raiborn, 1997).

There is a significant difference in collective and individual cultures. The organizations have to