So in essence the business model changed forcing new companies to grow and the older ones that focused on the old structure
Fannie Mae updated the, “Debts Paid by Others”, guideline. The non-mortgage debt does not have to be in the other party’s name as long as they are not an interested party in the transaction and the most recent 12 months canceled checks are provided documenting the other party has paid the account on time.
Freda Mae is a 7-year old girl who suffers from Cerebral Palsy. She experiences fluctuating muscle tone throughout her body, which causes her to have difficulty with basic activities of daily living (ADL’s). Freda Mae is currently using a manual wheelchair for mobility and has difficulty accessing some areas of her home. Freda Mae enjoys using a computer; however, she has difficulty due to not having an accessible work station. She currently lives with her mother, father, and two sisters.
During the 1920s, the United States was leading the world in economic growth. However, during Herbert Hoover Presidency the United States experienced the largest and longest economic crisis in history, which was referred to as the Great Depression. There were many explanations and arguments to what caused the Great Depression to take place. Some economists argued that the fall back of the agricultural sector contributed to the Great Depression. Some blamed the decrease in taxes and absent of government regulations, which supported the belief that markets were self-regulating.
The Industrial Revolution was a prosperous time for the western civilizations beginning in 1760 and ending between 1840 and 1860. The invention of railroads began in England, but was brought to the United States in the early 1800’s. In 1815, Colonel John Stevens got the first railroad charter with New Jersey Railroad Company, although a single train track was not laid until 1832 (www.american-rails.com/railroad-history.html). Therefore, the Baltimore and Ohio Railroad Company built the first railroad in 1827. The machine was purchased from the Stephenson Works in England.
Web. 17 Nov. 2015. Some of these companies were monopolies. Monopolies were the business that tried to all control over their product so then they could price it at any price they wanted.
Even further, these robber barons would often ruthlessly eradicate competition by buying out other companies to establish monopolies through the horizontal and vertical integration of production and product.
An act called The Sherman Antitrust Act which got passed by Congress in 1890. The Sherman Antitrust Act authorized the Federal Government to dissolve the monopolies and give out penalties for people found guilty of trying to make monopolies. For more than a decade the Sherman Antitrust Act was rarely used against industrial monopolies and not successful. The reason why it wasn’t very successful is that the companies would find loopholes and say the act was very understandable. President William McKinley launched the trust-busting era in 1898 which started really pushing to stop monopolies.
Soon, different ways to buy products were introduced, including buying on credit and the installment plan, this became very popular and they encouraged consumers to buy more than they could
The Federal housing administration distributed government insured loans in order to buy houses. This allowed people to willingly buy houses fearlessly. This meant that the housing market fail was relieved of its deflated prices. The FHA not only decreased homelessness, but it also helped contribute to the economy by returning the housing prices and made house sales more frequent providing more jobs in real estate. The Home Owner’s loan corporation also helped fight against the housing crisis.
Big companies were turning into monopolies which was putting smaller companies out
Different corporations also used different methods to force competitors to sell their businesses to them. For example, if Rockefeller wanted to buy out a competing oil refinery, he would stop providing crude oil to them from his oil rigs until they couldn't survive as a company any longer. Another example is Cornelius Vanderbilt's railroad monopoly. If Vanderbilt wanted to buy a competing railroad line, he would buy out all the land around it to block off its path, and render it useless to the current owners. That way, the owners would have no choice but to sell the railroad to him for cheap.
Another company is Sysco, a food-service distributor in the U.S. Porter demonstrates that “It led the move to introduce private-label distributor brands with specifications tailored to the food-service market, moderating supplier power. Sysco emphasized value-added services to buyers such as credit, menu planting, and inventory management to shift” (Porter, 2008, p. 90). Like Paccar, Sysco knows how to make them different from their competitors in the high competitive industry. In food industry, customers is very sensitive with price because they have many options for substitute, so companies must have a competitive prices. However, Sysco decides that they should add values to their products and improve connection with their suppliers.
Furthermore, the monopolies got rid of the competition so there was no competitive price point. This was not fair for the commoner because the businesses could change the cost of their products and people would have to pay what they charged. The United States has tried to remove all of the monopolies starting with President Theodore Roosevelt. Today there are practically no monopolies in the United States, but in two-thousand four Microsoft was sued for a monopoly of their product Microsoft Word, this was a very rare
Hence we assume this to be a situation of duopoly. The 2 companies sell products which are very close substitutes and are constantly fighting for greater market share. A person may buy a Coke product instead of a Pepsi one, and vice versa. The objective of both is to maximize their profit.
