Routledge Dictionary of Economics, Second Edition
A large global corporation controlled by its executives, not its shareholders.
These corporations have been able to replace smaller competitive firms because technological change made possible production ECONOMIES OF SCALE and national and international markets. Also, the modernization of financial markets enabled the raising of capital to finance mergers and the expansion of existing firms and advances in accounting and management science removed managerial DISECONOMIES as a barrier to growth. But continued expansion of megacorps is always threatened by the powers of tough governmental COMPETITION POLICIES to break up firms that have acquired too much monopoly power.
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