When does horizontal integration occur?
A. When a firm acquires or merges with a major competitor
B. When a firm acquires or merges with a an unrelated business
C. When a firm acquires or merges with a distributor
D. When a firm acquires or merges with a supplier firm
Answer: Option A
Solution (By Examveda Team)
Horizontal integration occurs when When a firm acquires or merges with a major competitor. Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply chain. A company may do this via internal expansion, acquisition or merger. The process can lead to monopoly if a company captures the vast majority of the market for that product or service.
Join The Discussion