THE LEGAL ENVIRONMENT OF BUSINESS Essay Example | Topics and Well Written Essays - 1000 words

THE LEGAL ENVIRONMENT OF BUSINESS - Essay Example Monopoly started a long time ago in the United States and it has since been a core tool to amass wealth in some firms in the world. Many people have constantly accused Google to be using such a monopolistic ideology of exploitation in the market. A monopoly exists when only one firm or person carries out supply of certain goods and services in the market. When such a phenomenon exists in the market, there is no competition in the production of goods and services hence it is very likely that the supplier does not bother about the quality of the products. According to Friedman (208), when the firm is the sole supplier in the market, it has significant powers to add prices of its products since there are no alternative goods or services in the market. Either the size of the business in the market does not matter in monopoly since a small or a big enterprise can possess powers to add prices on their products. Monopolistic firms practically produce small quantities of goods and services i n the markets to create artificial shortage in order to get a chance to hike their prices to realize maximum profits. Monopoly occurs in many forms such as government-established monopoly, natural monopoly and integration monopoly among others and each occurs depending on the prevailing market conditions. Although monopoly is legal and acceptable in the business domain, many governments in the world try to limit the level of monopoly in order to avoid exploitation and enhance competition which result in healthy development of the states. Monopoly law in the United States gained its roots over a century ago because it came with the colonial government. Many historical business experts link the establishment of monopoly in America with King Charles I of England in 1635. Yet this monopoly law has been applicable even in the recent years until the government passed another law to limit monopoly. Monopoly came into existence when the large-scale firms needed to provide labor to the large numbers of immigrants in America in order to promote hospitality in this state. According to Investopedia (Para. 2), the colonial government granted the huge firm contracts for the public works and after colonialism in America, the companies continued with the same policy due to the lands they possessed. One characteristic of monopoly is lack of completion but this system has proved to be very beneficial in the American economy. Therefore, immigration in America and existence of the few large companies led to the existence of monopoly and hospitality was the cause of monopoly. Some people’s minds take Google Company to be monopolistic in nature and some have gone into an extent of analyzing its business structure. Google is one of the best-known dot.com companies in the world because of its large variety of goods and services in the market. Google has provided a good platform for communication, search engines for academic and research purposes and the business solutions that promote better functioning of various businesses across the world. This firm has attracted so many users across all the disciplines such as scholars, office workers, businesspersons among others. Since its establishment, Google has earned large profits between 2001 and 2008 and this has steered the firm’