- keiretsu
- A network of Japanese companies organized around a major bank. The term is also used outside of Japan to describe how a large corporation with many subsidiaries ( subsidiary) and associated firms can manipulate revenues. For example, firm A and B are controlled by firm C. Firm A is forced to buy its input from firm B at a high price. As a result, A is unprofitable and B is very profitable. Bloomberg Financial Dictionary
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keiretsu kei‧ret‧su [keɪˈretsuː] noun keiretsu PLURALFORM [countable, uncountable] COMMERCE ORGANIZATIONSa group of companies in Japan that decide to work together so that they can control or influence prices within a particular industry:• The study found that ties are loosening within the six major keiretsu.
• Keiretsu eliminates inefficient competition among fellow members.
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keiretsu UK US /keɪˈretsuː/ noun [C or U] (plural keiretsu)► FINANCE, WORKPLACE in Japan, a group of companies that are closely connected, for example because they own shares in each other, and that work together to develop and protect each other's business: »As the biggest owners of cross-holdings of shares, the banks sit at the centre of most keiretsu.
»U.S. automakers are at a disadvantage in Japan because of strong keiretsu business ties which tend to limit dealerships to selling only one brand.
Financial and business terms. 2012.