The topic of corporate monopolies and their economic effects has appeared frequently in IELTS Writing Task 2 exams, particularly in the past 2 years. Based on analysis of recent exam questions, this theme commonly appears in both advantage/disadvantage and discussion essays. Below is a recent exam question that exemplifies how this topic is tested.
Some people believe that governments should break up large corporations to prevent monopolies and promote competition. Others argue that large companies are necessary for economic growth and innovation. Discuss both views and give your opinion.
Corporate monopoly debate showing contrasting views on economic impact
Analysis of Question Requirements
This discussion essay requires candidates to:
- Examine both perspectives on corporate monopolies
- Present arguments for and against breaking up large corporations
- Provide a clear personal stance supported by examples
- Use appropriate economic terminology and concepts
Sample Essay 1 (Band 8.0)
The debate over whether governments should dismantle major corporations to prevent monopolistic practices continues to spark intense discussion among economists and policymakers. While some advocate for breaking up large companies to foster competition, others contend that these corporations are essential drivers of economic advancement. In my view, while both arguments have merit, maintaining a balanced approach through effective regulation rather than breaking up companies is the most pragmatic solution.
Proponents of breaking up large corporations argue that monopolies can harm the economy in several ways. When companies become too dominant, they often stifle competition by engaging in predatory pricing or acquiring potential competitors. For example, in the technology sector, giants like Amazon have been criticized for using their market power to undercut smaller retailers, ultimately reducing consumer choice and innovation. Additionally, excessive market concentration can lead to reduced wage growth and fewer employment opportunities as smaller businesses struggle to compete.
However, those who support large corporations emphasize their crucial role in driving economic progress. These organizations possess the resources and economies of scale necessary to invest in groundbreaking research and development. For instance, pharmaceutical companies require substantial capital to develop new medications, while automotive manufacturers need extensive resources to advance electric vehicle technology. Furthermore, large corporations often create efficient supply chains that reduce costs for consumers and facilitate international trade.
From my perspective, the solution lies not in dismantling large companies but in implementing robust regulatory frameworks. Governments should focus on preventing anti-competitive practices while allowing corporations to maintain the scale necessary for innovation and efficiency. This could include strengthening antitrust laws, ensuring fair market access, and protecting consumer interests without compromising the benefits that large organizations bring to the economy.
Sample Essay 2 (Band 6.5)
The question of whether governments should break up big companies is a complex issue. Some people think it’s necessary to prevent monopolies, while others believe large companies help the economy grow. I will discuss both sides and share my opinion.
Those who support breaking up big companies have some good reasons. First, when companies get too big, they can control prices and hurt smaller businesses. For example, some big tech companies make it hard for new businesses to compete with them. Second, these big companies might not care about customers because they have no competition.
On the other hand, large companies can be good for the economy. They create many jobs and can spend lots of money on new technology. For example, car companies need to be big to develop electric cars. Also, big companies can make products cheaper because they buy and make things in large amounts.
I think the best solution is to have rules for big companies instead of breaking them up. Governments should make sure these companies follow fair rules and don’t hurt competition. This way, we can keep the good things about big companies while protecting smaller businesses and customers.
Analysis of Band Scores
Band 8.0 Essay Analysis:
- Task Response (8): Clear position, fully developed ideas, relevant examples
- Coherence/Cohesion (8): Logical organization, effective paragraphing, smooth transitions
- Lexical Resource (8): Sophisticated vocabulary use (“predatory pricing”, “economies of scale”)
- Grammar (8): Complex structures, excellent control, natural flow
Band 6.5 Essay Analysis:
- Task Response (6): Clear but simpler ideas, basic examples
- Coherence/Cohesion (7): Clear organization but less sophisticated linking
- Lexical Resource (6): Limited range, some repetition
- Grammar (7): Mix of simple and complex structures, occasional errors
Key Vocabulary
- monopolistic practices (n.) /məˈnɒp.ə.lɪs.tɪk/ – behavior typical of monopolies
- predatory pricing (n.) /ˈpred.ə.tər.i/ – pricing goods below cost to eliminate competition
- market concentration (n.) /ˈmɑː.kɪt kɒn.sənˈtreɪ.ʃən/ – degree of market control by few firms
- economies of scale (n.) /ɪˈkɒn.ə.miz əv skeɪl/ – cost advantages from large-scale production
- antitrust laws (n.) /ˌæn.tiˈtrʌst/ – regulations preventing anti-competitive business practices
Diverse business ecosystem showing healthy market competition
Consider practicing with these related topics:
- The role of government regulation in preventing market manipulation
- The impact of tech giants on digital economy
- Benefits and drawbacks of economic consolidation
Share your practice essays in the comments for feedback and discussion!
