ABSTRACT
Globalization had added an entirely new dimension to the familiar problem of economic concentration. Coalition-forming is the specific type of cooperation which accompanies globalization. The core activity, globalization and coalition-forming introduce a new market structure dominated by something close to what used to be known as natural monopolies. The new market structure implies the presence of a near monopoly in certain semi-finished goods and in particular production processes. It facilitates the determination of prices in line with investment plans with little regard for market competition. Competition may be brisk, indeed cut-throat, but the floor under which prices cannot fall is increasingly determined by the investment plans, and financial requirements to implement them, of a small number of corporations. Irrespective of whether markets are expanding or contracting, these corporations cannot avoid investing heavily to preserve their technological primacy in their core activities.
