When companies form a consortium to 'bid for a tender', they are:

Question

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When companies form a consortium to 'bid for a tender', they are competing for a contract offered by, for example, a government agency. This is a common practice where multiple companies come together to bid for a large project or contract. It allows them to pool their resources, skills, and expertise to submit a more competitive and comprehensive proposal. It is not considered colluding to restrict competition as the consortium is still competing with other potential bidders. It is not engaging in a risky investment strategy or hedging exchange rate risks as it is solely focused on bidding for a specific project or contract.

When Companies Form a Consortium to 'Bid for a Tender