Concentration: Is Size its Own Reward?
A substantial increase in the worldwide value of cross-border mergers and acquisitions as well as strategic alliances has raised concerns that liberalization of world FDI may erode the contestability of national markets owing to increased concentration and the subsequent emergence of private barriers to entry through restrictive and anticompetitive behaviour. After a brief review of recent trends in international business, this paper explores the concerns raised by M&A and strategic alliances, first at the international level and second in the Canadian context. The author concludes that the traditional perspective on concentration and competition, whose foundations go back to the 1890s, should be reviewed to account for the new dynamics in international business.
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|Date of creation:||1999|
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