Go to the federal trade commissions website http://www.ftc.gov/bc/index.shtml an
ID: 1251884 • Letter: G
Question
Go to the federal trade commissions website http://www.ftc.gov/bc/index.shtml and select FTC conditions irving oil's proposed acquisition of exxon mobil assets in maine.group discussion board, present a complete description of the industry.•Second, in another group discussion board, present two arguments: One in support of the merger and the other opposing the merger.
•Finally, write a 5-8 page paper that contains the industry description, and the two arguments.
•Set-up a group discussion board and post the following information.
Part 1) Industry Description:
1.Describe the firms in the proposed merger. List their annual sales, and extent of their operations.
2.From the firms' point of view, what are some of the incentives to consolidate?
3.List and describe the firms in the industry.
4.Describe the product, production methods, scale of production, and sources for raw materials. What technologies are used?
5.Describe the competitive environment within the industry. Is there a dominant firm? Are the other firms follow or actively compete? How do they compete? (For example, by using price, advertising, quality or some other variable.)
6.Report and interpret the 4 firm concentration ratio, the 8 firm concentration ratio and the Herfindahl Herschler Index for the industry.
Part 2) Two Arguments:
In a separate group discussion board, present two arguments. The first should argue in favor of the proposed merger, from the perspective of the firms. The second agrues against the proposed merger from the perspective of the broader public interest. In those arguments, answer the following questions.
1.Explain the importance of competition among firms.
2.Explain whether the competitive environment in this industry benefits society or not.
3.Is a high degree of market concentration a boon or threat to consumers? Explain. Use either the allocative efficiency or dynamic efficiency arguments.
4.Can the oligopoly market structure benefit both consumers and businesses by forging common standards in industries that experience rapid technological change?
Part 3) Written Report:
Write a 5-8 page paper that contains the information presented in your group discussion boards. Concentration ratios and descriptive statistics for various industries are available at the Census Bureau’s economic census web site: http://www.census.gov/epcd/www/concentration.html .
This assignment will also be assessed using additional criteria provided here.
Please add your file.
Explanation / Answer
Industrial Profile:
The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category.
Petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization itself, and thus is a critical concern for many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East.
Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007.[1] The production, distribution, refining, and retailing of petroleum taken as a whole represents the world's largest industry in terms of dollar value.
Governments such as the United States government provide a heavy public subsidy to petroleum companies, with major tax breaks at virtually every stage of oil exploration and extraction, including for the costs of oil field leases and drilling equipment.
Discussion Board presenting the two arguments
“We continue to closely monitor deals in the energy sector to ensure that consumers of petroleum products are served by competitive markets,” said FTC Bureau of Competition
Director Richard Feinstein. “We expect the relief obtained here to accomplish that goal and protect consumers from higher gas prices.”
Firms in the proposed Merger
Exxon mobil is in the production of oil and natural gas and is one of the leading brand in building new technology.
it is the world's largest publicly traded international oil and gas company, providing energy that helps underpin growing economies and improve living standards around the world.
Maine group is a leading producer of storage and filing equipments like the cup boards, drawers, high capacity drawers …
Maine introduced the lateral filing system to the UK in 1985, manufacturing Storwal cabinets under license.
In 1992 Storwal ceased trading and Maine started manufacturing under their own brand, Maine have gained an unrivalled reputation for manufacturing excellence and service levels since then. Maine’s filing & storage has been manufactured at Kings Langley and their components parts with Milton Keynes Pressings (MKP) since 1985. In 2003 MKP became the sole supplier of components for Maine including sheet metal manufacturing
The Products of Maine Group are
Drawers, High capacity drawers, cupboards, multi-units, pedestals rambours, high density storage, lockers, towers, mobile units, Book cases, Postal units, recycling units, accessories, colours.
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