There are also for-profit businesses, but they are less common. One of the best-known profit consortia is the aircraft manufacturer Airbus Industrie GIE. European aerospace manufacturers are cooperating within the consortium to produce and sell commercial aircraft. See the full definition of the consortium in the English Language Learners Dictionary A consortium consists of two or more individuals, companies or governments working together to achieve a common goal. Companies participating in a consortium pool resources, but they are only responsible for obligations defined in the consortium agreement. Any company under the consortium therefore remains independent of its normal activities and has no say in the activities of another member that are not related to the consortium. While consortia tend to share resources, they act independently when it comes to day-to-day business. In the case of a joint venture, two or more parties generally share ownership of a business, as well as risks, profits, losses and governance. These sets of examples are automatically selected from different online sources of information to reflect the current use of the word “consortium.” The opinions expressed in the examples do not reflect the views of Merriam-Webster or its publishers. Send us comments.
For example, the Five College Consortium of Massachusetts includes the University of Massachusetts Amherst, Mount Holyoke College, Hampshire College, Smith College and Amherst College. Students attending one of these schools can attend classes at any other partner school at no additional cost. These educational consortia include partnerships between institutions that are close. Other consortia include The Quaker Consortium, The Claremont Colleges and Big Ten Academic Alliance. In the United States, the video streaming service Hulu is a consortium of major media companies such as Comcast, Time Warner, the Walt Disney Company and 21st Century Fox. Thesaurus: All the synonyms and antonyms for the consortium Illustrates the complexity of such an agreement, Airbus` four partner companies (British Aerospace, Aerospace, Construcciones Aeron`uticas SA and DASA) were both subcontractors and shareholders of the consortium. This agreement resulted in a number of conflicts of interest and inefficiencies, as well as a possible move to Airbus SAS in 2001, which consolidated the original members of the consortium and reduced overhead costs. Countries that develop standards have a competitive advantage over countries that do not, and countries and industries that subscribe to a global standard are often leaders in international trade. However, the creation of standards can lead to potential abuses and concerns about cartels and abuse of dominance. In the United States, the legal basis for cooperation and consortia can be found in the antitrust guidelines for the Competitors Among collaboration of the Department of Justice and the Federal Trade Commission.
Unlike a joint venture, consortia act independently in day-to-day operations. Consortia are often in the not-for-profit sector, for example. B in educational institutions. Educational consortia often pool resources such as libraries, research activities and professors and share them among all members of the group to use their students. Several groups of colleges and universities in North America work as consortia. . Federal Trade Commission und Department of Justice. “Antitrust Guidelines for Collaborations Among Competitors.” Access on October 29, 2020. Governments and private companies often work together to formulate standards for food production, food production, product compatibility, consumer safety and much more.
In such cooperations, a government uses its purchasing power as a consumer to create standards.