When eight arms are better than one
Article Abstract:
Conglomerate corporations have become unfashionable in developed economies and have also played a role in the problems of some Asian economies, such as South Korea. Conglomerates can, however, be run efficiently, as has occurred in Chile, with the Luksic group. The Chilean economy has undergone liberalization, and conglomerates still perform well. Brazil also has large and successful diversified companies, as has Mexico. Conglomerates may have some advantages in underdeveloped markets. Cronyism with lack of transparency appear to hamper their performance where they have not been successful.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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The sting of death
Article Abstract:
South Korean corporate bonds have seen rising yields which look set to rise further. This could lead to an increase in financing costs which could affect the economic recovery of South Korea. The investment trust industry has been affected by selling of bond holdings which has followed a technical default by Daewoo in Jul 1999. The government is constrained in dealing with the situation, since the provision of liquidity could lead to inflationary pressures. Daewoo could be restructured, but the government appears unwilling to do this.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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