To make clear the point Cowbee made, consider these three scenarios:-
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The different parts of the country have different levels of natural resources / infrastructure / educational facilities. Co-ops i the wealthier areas are doing well, and all their employees are prospering. But those in the poorer areas are struggling, and all their employees are struggling.
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There are five co-ops making the same type of product (say, radios). They each have their own design office, factory, sales networks and marketing. Would it not be more efficient to consolidate them?
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There is a co-op that works in digging coal and running a thermal power plant. The society as a whole would benefit from switching to solar panels, but this co-op keeps blocking all such efforts since it would hurt them.
‘Trade with us or we’ll make it harder to trade with us’? That makes perfect sense!