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Are Big Firms an Advantage?

In: The Case against Joining the Common Market

Author

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  • Paul Einzig

Abstract

We saw in the last chapter that one of the advantages of large trading areas lies in the opportunity they provide for the expansion of individual firms into giant corporations. But judging by the example of the Netherlands, and owing to the growing internationalisation of big business, big countries do not possess the monopoly of producing giant firms. Nevertheless, statistics show that the large majority of the ‘upper hundred’ among the big firms are American. This does not necessarily mean that the only cause, or even the main cause, why so many American firms have grown so large is the size of their domestic markets. The existence of such markets does help considerably. But the dynamism of American businessmen, and the prolonged expanding basic trend in the United States rather than the actual size of the markets, was responsible for the growth of a great many individual firms and combines to their present gigantic size.

Suggested Citation

  • Paul Einzig, 1971. "Are Big Firms an Advantage?," Palgrave Macmillan Books, in: The Case against Joining the Common Market, chapter 5, pages 40-45, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-01223-7_5
    DOI: 10.1007/978-1-349-01223-7_5
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