Abstract

Taking part in the activity of an economic interestgroup and creating collective products, business enterprisessuffer material and non-material costs. Thereforethere arises the wish to use collective products without anyeffort to create them, i. e. to apply “parasitic” strategy.The product supply strategy is worked out according toParet’s effectiveness condition when big, medium andsmall enterprises take part in the activity of an economicinterest group.The article presents the results of the analysis of aneconomic interest group based on the research by foreigneconomist in the aspect of the benefit and costs in participatingin a collective activity and distributing economysubject according to economic capacity into big, mediumand small business enterprises.The article distinguishes the main factors conditioningthe stimulation and hindrance of the activity of an economicinterest group. In order to better define the effectivenessof the activity of an economic interest group, thefactors reducing the effectiveness of group activity areclassified into interior and exterior destructive factors.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.