Final answer:
A conglomerate is a grouping of firms in different industries and countries acting in unison to achieve common goals. Competing corporations may form a conglomerate or join an association for the benefits of pooled resources, common lobbying, and influence on governmental policies.
Option 'C' is the correct.
Step-by-step explanation:
A conglomerate is a grouping of firms in different industries and countries held together by common goals that encourage them to act as a single firm. This type of organization is beneficial for a variety of reasons.
Firstly, there is often strength in numbers when firms band together, which can provide a competitive edge. Moreover, competing corporations in a conglomerate often have common issues that affect their entire industry. These could include regulatory changes, economic shifts, or the need for collective lobbying efforts to influence governmental policies. Finally, all members can benefit from governmental policies that favor their industry as a whole, which can occur when they present a united front.
Several reasons exist for why competing corporations might join together in an association or conglomerate. They might do so to pool resources and collaborate on common goals which allows for greater leverage and bargaining power.
Additionally, an association allows members within the same trade or industry to address shared concerns, such as manufacturing standards, distribution challenges, and business regulation. Members benefit from lobbying for tax breaks or eased regulations that benefit the entire industry. While they maintain their competitive stance in the marketplace, the shared voice provides them all with potential advantages.
Multinational corporations (MNCs) are also a form of conglomerate that controls the production of goods and services in multiple countries. Such entities have used their growing wealth and reach to influence global trade policies and extend their influence through lobbying governments, thanks to their international operation capabilities.