syndicate

(redirected from Purchasing Groups)
Also found in: Dictionary, Thesaurus, Legal, Financial.

syndicate

1. an association of business enterprises or individuals organized to undertake a joint project requiring considerable capital
2. any association formed to carry out an enterprise or enterprises of common interest to its members
3. a board of syndics or the office of syndic
4. (in Italy under the Fascists) a local organization of employers or employees

Syndicate

 

(1) One form of monopolistic, cartel-type agreement, aimed at establishing control over the market primarily of a single, mass-produced product and made for the purpose of eliminating competition between monopolies in the marketing and purchasing of raw materials and, thus, for the purpose of obtaining the greatest profit (seeCARTEL). Syndicate members sell their products and purchase their raw materials through a single sales office. The sales office receives all orders and distributes them in accordance with the quotas agreed upon by the monopolies, which deliver their commodities to the office at a price previously agreed on. Syndicate members maintain their independence as far as production and legal status are concerned; in contrast to a cartel, however, they lose their commercial independence.

Syndicates flourished in the early 20th century until World War II in Germany, France, and other countries, mostly in the extractive industries. Interwar Germany had several hundred syndicates, the largest being the Rhine-Westphalia Coal Syndicate and the German Potash Syndicate. Prerevolutionary Russia also had syndicates, such as Prodamet (metallurgy), Produ-gol’ (Donets Basin coal), and Med’ (copper), which controlled the marketing of as much as 90 percent of production in the corresponding branches of industry.

Syndicates, as a form of monopolistic agreement within a given branch of industry, have lost their former importance. Antitrust laws have limited horizontal concentration, that is, concentration within a given branch of industry, and high levels of monopolization prevail in most such branches; thus, other, more flexible forms of monopolistic agreement have come into use (seeCAPITALIST MONOPOLIES).

(2) In the USSR, during the period of the New Economic Policy, a type of economic organization that combined a group of industrial trusts for the wholesale marketing of production, the purchasing of raw materials, and the planning of trade operations. The first Soviet syndicate—the All-Union Textile Syndicate—was created in 1922; in the period 1922–28 a total of 23 syndicates were in operation. Syndicates were eliminated in 1929 and 1930.

REFERENCES

Lenin, V. I. Imperializm, kak vysshaia stadiia kapitalizma. In Poln. sobr. soch., 5th ed., vol. 27.
Hilferding, R. Finansovyi kapital. Moscow, 1959. (Translated from German.)
Motylev, V. E. Finansovyi kapital i ego organizatsionnye formy. Moscow, 1959.
Khmel’nitskaia, E. L. Ocherki sovremennoi monopolii. Moscow, 1971.

A. A. KHANDRUEV

Syndicate

organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018]
References in periodicals archive ?
Moreover, state officials and insurers said, the new purchasing groups would disrupt the regular insurance market by siphoning off millions of healthy workers whose premiums could otherwise subsidize care for sick people.
For example, the owner of a business not considered "high risk" might end up paying the same premium as those that are high risk because all are in the same purchasing group.
HealthTrust Purchasing Group, headquartered in Brentwood, Tenn.
Redican's track record in arranging contracts with purchasing groups is very impressive," said Curry.
In addition, the panel recommended that the NAIC increase its monitoring of risk retention and purchasing groups.
HIA), a leading provider of custom designed insurance programs and services to business, associations and franchise operations announced today that the workers' compensation educational series presented throughout metro areas of the state by Texas Mutual Insurance Company and HIA resulted in a sharp increase of purchasing group policyholders in recent months.
Learn which purchasing groups some of the large providers in your area are using.
In addition, the early indications are that enhanced competition is pushing down insurance premiums outside of the purchasing groups as well.
Organizations and central purchasing groups now source products internationally just as easily as they do domestically, while developing competitive product portfolio margin spreads with the profits that come from international sourcing.
Many of the hospitals represented by the five groups are also affiliated with other purchasing groups already teamed with Pyxis.
Texas Mutual Insurance Company reported in February that TGI is one of its fastest-growing purchasing groups.

Full browser ?