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Discussion Board reply Discussion board reply Cartels are formed by producers who are like- minded, with a central aim of protecting their interests. This makes cartels very strong. However, they sometimes collapse due to various reasons. First, when the government comes to know of their pricing techniques, this leads mostly to collapse since the government has a role to protect the citizens from exploitation as well as ensure economic stability. Member firms of the cartels always cheat as they all aim at increasing their accrued benefits (Grossman, 2005).
This leads to a collapse of the cartels. Cartels raise entry requirements, and, therefore, most times, their collapse is not, as a result, of non- compliance by new entrants. Cartels are dishonest and this, according to proverbs 11:1, does not please the Lord. Immigration has become common in the recent past, with the US having a high number of immigrants yearly. Immigrants need jobs to make it possible for them to survive. Therefore, they apply for jobs in the US thereby increasing competition for jobs.
One can easily see immigrants as having an adverse impact on the employment status of the American natives. However, competition increases efficiency and, therefore, the labour market becomes more efficient when competition increases (Gordon, 2007). Ill- treating immigrants would go against the teachings of the bible, which requires us to treat others as our equals and show them love. However, immigrants department need to impose rules that will ensure that all immigrants in the US are legal for planning and also for security.
ReferencesGrossman Peter. 2005. How Cartels Endure and How They Fail: Studies of Industrial Collusion. EH. NET. CheltenhamHanson Gordon.2007. The Economic Logic of Illegal Immigration. New York: Council on Foreign Relations.
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