A Blockbuster Decision: The Merger of GE and Honeywell
Why was the planned merger between GE and Honeywell blocked in 2000?
a. contract laws
b. economic reforms
c. antitrust laws
d. accountability laws
Answer:
The block imposed on the planned merger between GE and Honeywell by the EU's Competition Commission was due to the application of antitrust laws which serve to promote competition and prevent monopolies, thereby advancing globalization. The correct option is (c).
The imposed block on the planned merger between GE and Honeywell by the EU's Competition Commission was a result of c. antitrust laws. These laws are meant to promote competition and prevent any company from monopolizing the market. By enforcing the block, the EU ensured that the market for GE-Honeywell products remains competitive and open to other potential players. This decision fostered fair business practices and prevented any distortion in the market that may be caused by a potential monopoly, thereby promoting globalization.
Antitrust Laws: Promoting Competition and Preventing Monopolies
Antitrust laws are put in place to ensure fair competition and prevent businesses from engaging in practices that may harm consumers or other businesses. These laws promote economic efficiency and protect the welfare of consumers by promoting competition in the marketplace.
Key Points:- Antitrust laws aim to prevent monopolies and promote competition.
- They are designed to protect consumers and promote economic efficiency.
- Enforcing antitrust laws helps maintain a level playing field for businesses.