cartel

kar-TEL /kɑːrˈtɛl/
nounB2SATGMATIELTS
BusinessPoliticalJournalistic

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

While often used for drug organizations (e.g., 'drug cartel'), it is also a technical term in economics for legal or illegal price-fixing groups.

The story behind the word. Originally, a 'cartel' was a written agreement between warring nations, often regarding the exchange of prisoners. In the 19th century, it began to be used for written agreements between businesses to limit competition, evolving into the modern sense of a price-fixing group.

Word relationships

  • syndicate: A syndicate is a broader term for any group acting together; a cartel specifically targets market control.
  • trust: An older term for a large group of businesses that coordinate to reduce competition.
  • competitor: A person or company that tries to be more successful than others in the same market.

Commonly confused with

  • monopoly: A monopoly is one company; a cartel is a group of companies.

Collocations

  • drug cartel
  • international cartel
  • break up a cartel
  • cartel leader

Example sentences

  • "OPEC is often described as an oil cartel because its members coordinate production to influence global prices." Discussing international oil prices.
  • "The government launched a major offensive against the drug cartel operating along the border." A report on law enforcement efforts.

Memory hook

Think of a 'car' full of 'tell-ers' (bankers) agreeing to keep prices high. A cartel is a 'card' (charta) or contract between rivals.

When not to use

Do not use for a single company that has a monopoly; a cartel requires multiple independent entities working together.

Fun facts

  • The Medellín Cartel, led by Pablo Escobar, was once responsible for 80% of the world's cocaine market.
  • Cartels are illegal in most countries under 'anti-trust' laws.

Related words

syndicate, kingpin, collusion

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